Video: Standardizing Business Processes within Oil and Gas Markets to Reduce Costs
- E. Campbell (Oceaneering International, Inc.)
- Document ID
- Offshore Technology Conference
- Publication Date
- Document Type
- 2017. Copyright is retained by the author. This presentation is distributed with the permission of the author. Contact the author for permission to use material from this video.
- 7.4.3 Market analysis /supply and demand forecasting/pricing, 7 Management and Information, 7.4 Energy Economics, 7.3 Strategic Planning and Management, 7.3.3 Project Management
- Cost saving, Oil and Gas, Oil and Gas, Business philosophy, Standardization
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- 13 since 2007
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The objectives of this proposed paper are to:
Demonstrate the potential cost reduction benefits derived from implementing a standard process for customers to purchase items
Compare the oil and gas market to industries where common business standardization philosophies are being used
Highlight areas of potential cost savings
A review of previously published studies and common project management methods will be used.
Identifying crossover of processes from industries with a history in standardizing will assist in drawing conclusions about potential applications in the oil and gas industry. Common business philosophies including Kiezen and Stage Gate, will be reviewed and highlight common themes between oil and gas and other markets and identify cost saving potential. Applicable common management methods will be described will be supported by examples of successful implementation of the processes. The identified cross-over opportunities will be compared in cost models to demonstrate effectiveness The mature nature of the oil and gas industry presents an opportunity for standardization because we now have historic project data and can identify opportunities for adopting common practices. Papers investigating process standardization within the oil and gas industries are typically rare compared to health markets, for example.
The implementation and awareness of these business philosophies has recently increased. Due to a dramatic decline in the oil price, businesses have been forced to review their business practices and identify opportunities for cost savings. These ideologies, if implemented, have the potential to transform the competitive business market and improve efficiency within the industry, effectively reducing overall costs for companies. This is crucial to keep the oil and gas market buoyant and evolving. The comparison of common standardization business practices in the oil and gas market is often met with skepticism. More research and discussion on the subject, however, could greatly benefit the industry.