Oil & Gas

The oil and gas industry faces challenging times with low prices, volatile prices, increasing difficulty to acquire production, increased environmental responsibility and regulation, and new technology. Oil and gas has had a more difficult time than most industries delivering projects that meet the planned expectations with over 70% of projects being under performance by 25%, over budget by 25%, or over schedule by 25%. Reasons for these difficulties include more difficult geology and geography requiring new technologies, insufficient effort in FEED studies, more reliance on ECPM’s for Owner’s functions, and other inflationary pressures. In good industry times, these project difficulties are not so critical to industry and company health. But in today’s world, with less capital availability and increased environmental responsibility, improved approaches are needed.

Oil and gas has experienced 15 years of boom and is now going through the low end of the cycle with uncertainty on when the next up cycle will start, and what shape it will take. Progressive companies will structure their business, strategy, operations, and management systems for managing in today’s environment and also position themselves for future success. By applying a holistic systems analysis of the entire business, and investing in the right initiatives, companies can deliver on their desired longer term strategies.