“Spin-ins” retain intellectual capital, promote growth

✍ Scribed by Bickle, Larry W.

• Publisher: John Wiley and Sons
• Year: 2007
• Weight: 378 KB
• Volume: 12
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410120104

✦ Synopsis

he natural gas industry is going through a T period of consolidation, which is a polite way of saying that it is time to "get big or get out." Many believe that critical mass and economies of scale are now becoming more important than agility and resiliency. The good thing about consolidation, critical mass, and economies of scale is that these can keep the value and application of monetary capital and other physical resources at an optimum during times when the external environment is stable. The shortcoming of consolidation and a focus on increased efficiency is that this tends to degrade the flexibility, resiliency, and agility needed to deal with an uncertain and rapidly changing external environment.