Management Decision Matrix for Shale Gas Projects in Europe

Abstract

On the today's global market it is an important issue to have an adapted management system, due to the fast change of beliefs in social communities and politics. In the last few years a significant change in E&P business could be recognized from conventional sources to unconventional ones. With this extensive change the degree of resistance and possible problems for E&P companies increase, especially in Europe.

To realize an unconventional project in Europe, like shale gas, it is very important to adjust the project management to the given situation. There is a lot of resistance and fear from the population in Europe against shale gas projects, which is somehow unfounded.

To maintain a high acceptance of the communities and governments, the emphasis lies on the adaption of this operation.

The projects have to be operated in a more sustainable way. Observation of economic and technical issues is important, but the management has to look further beyond. To account for the overall sustainability, two further levels have to be considered, especially in shale gas projects. Ecological and social aspects for unconventional projects have to be introduced and interconnected in a higher degree compared to conventional projects in the oil and gas industry.

This paper introduces a 3D matrix, where the three major points of sustainability are imbedded into a workflow chart of a shale gas project. The matrix should act as a sort of subsidiary to the management of a shale gas project in Europe.

Introduction

The world energy demand is increasing gradually and E&P companies are forced to increase their resources. In the last few years a worldwide increase in shale gas projects could be recognized, especially in the US. This hype of shale gas is coming over to Europe. The situation in Europe is mainly different than that in the US. Consequential an adaptation of the project management has to be done, to fit into the European requirements.

To achieve a general overview on shale gas projects, an understanding of the relevant techniques and geological issues need to be established. The authors intend to highlight the difference in project management between conventional and unconventional projects, particularly for shale gas projects. Furthermore the difference of social, ecological, technical and economic issues is presented in the 3D matrix. The developed matrix acts as a decision tool for the project management level and should help to implement the shale gas project in a more sustainable way. To guaranty the transformation of the three columns of sustainability the matrix covers the main tasks of an E&P project for the particular project phase. The matrix should act as an impulse for discussions in the E&P business. It is important to notice that this matrix is based on interviews with University Professors as well as engineers from different petroleum companies in Europe, which are currently realizing shale gas projects.