Fueling payment efficiency in the oil and gas industry

Discover how Visa Commercial Solutions can reduce friction, strengthen supplier relationships and improve working capital management across the payments value chain.

Peter Kienlen | 05/27/2026 | minute read

The North American oil and gas landscape

North American oil and gas markets represent about $515 billion in annual revenue — almost 32% of global industry revenue.¹ Surprisingly, ~95% of North American gas and oil producers are small businesses, while a few large companies account for most of the output.² Currently, North America's revenue is projected to grow by 4% by 2032.³

Headwinds and tailwinds shaping payments

Operating conditions change quickly in energy. Political climates, sanctions, tariffs and other global factors can quickly trigger market changes that also affect payment needs.

At the same time, investments in sustainable energy, low-carbon solutions, ESG and broader automation, as well as digitalization efforts are pushing organizations to modernize finance operations, including payments.

Oil and gas operating model

Upstream

Exploration and production (E&P) of crude oil and natural gas

Midstream

Transportation, storage, logistics and wholesale distribution

Downstream

Refining and retail distribution of finished products

Different priorities but common challenges

While each stream has different operational priorities, payments is a shared dependency across all three. When payment processes are slow or inconsistent, the ripple effects show up as delays in field work, more exceptions from clerical staff and tighter supplier credit.

Help keep work on track and protect capital

Upstream organizations prioritize cost and efficiency, predictable cash flow, and integration across production and accounting. Some upstream payment flows remain manual. This can include royalty payments, where 10% - 25% of E&P revenue is often distributed by check.⁴ Long supplier payment cycles (90+ days in some cases) can create liquidity pressure for service partners and increase the operational burden of dispute resolution.

Help standardize, integrate and reduce exceptions

Midstream finance teams aim to integrate systems, improve data consistency and reduce invoice disputes. In this segment, vendor invoice dispute rates can be significant, with some as high as 60% per month.⁵ This can lead to additional work and extended payment timelines.

Help protect margins and improve speed to settlement

Downstream organizations, including fuel retailers, tend to operate on tight margins and can be sensitive to swings in oil prices. Faster, more predictable settlements can help improve days outstanding, enhance transparency and reduce the operational burden of check-based processes.

Common pain points for suppliers

Oil Field Services Providers (OFSPs) work across all three streams and play a crucial role in the energy economy. They support everything from drilling and well services to logistics, equipment rental and site maintenance. Many are small businesses that rely on steady capital to cover payroll, support field operations and invest in equipment. Access to working capital can present a challenge in the following ways:

Extended, unpredictable DSO: Payment terms often stretch to 60-70+ days—with some cycles exceeding 90 days.⁶
Reliance on expensive short-term financing: When cash flow is uncertain, suppliers may turn to invoice factoring or other short-term financing to cover the shortfall, which reduces margins and long-term flexibility.
Manual and check-based payments: A significant portion of payments — including royalty distributions — are still made by check, creating friction and reducing transparency.⁴

Optimization for better outcomes

Optimizing payment flows isn’t just about paying faster. It’s about creating a process that’s predictable, trackable and scalable. For oil and gas companies, that usually means:

Digitizing payments where checks and manual steps still dominate
Accelerating supplier settlement without pulling forward corporate cash outflows
Reducing invoice exceptions by improving data quality and reconciliation
Creating transparency into money movement and working capital impacts
Integrating payment execution and reporting into existing AP/AR and ERP systems

Solutions that address these challenges can enable organizations to reduce time spent on administrative tasks and increase focus on key business objectives.

Why Visa Commercial Solutions

Visa Commercial Solutions enhances B2B payments by integrating commercial card and virtual payment options with data and reporting tools. In the oil and gas industry, this can help suppliers get paid fast and predictably, while improving visibility and reducing operational challenges.

Accelerated payments and reduced DSO
Automated invoice generation and reconciliation
Extended payment terms (for example, net 60/90) through card settlement cycles
Fraud reduction and secure transactions
Cash flow traceability and transparency
Integration into existing accounting and ERP systems for reporting

A working capital engine for the entire industry

In a traditional invoice-driven process, suppliers may wait 60–70+ days to get paid. Accepting card payments is cited as the second-most common strategy to reduce DSO, often to around 19–21 days.⁶ At the same time, buyers who pay with cards can align cash outflows with the card statement due date, thereby maintaining or extending DPO.

Let the payments flow

When cash is delayed, suppliers feel it in the field. When data is missing, finance teams feel it in rework, which can be especially costly to the 95% of small oil and gas producers in the U.S.² And when payments are opaque, leaders can lose clarity into where working capital is tied up.

Visa Commercial Solutions can help modernize payment operations across the value chain — accelerating supplier settlement, improving reconciliation and strengthening resilience across a fragmented ecosystem. The outcome is a payment experience designed for speed, security and scale.