Extending Wealth Creation Through Effective Project Management Strategy In The Oil And Gas Industry

Abstract

Abstract This treatise is created to expose the opportunities that abound in the oil and gas industry. Have you ever faced a situation where a project owner shows little or no interest in the success of the project involving large scale amount of resources? Imagine a project engineer in a large oil and gas organization working twenty years on several projects having only one regret – that he cannot recall any one project that was successfully concluded with good return on investment (ROI). The phrase "failed project" is nothing new to the engineer who is deflated having nothing to boast about on leaving the establishment. This paper provides insight on the root cause of these colossal waste in resources and directs the world's focus on how reducing these losses can result in the creation of wealth for not only the establishment but for numerous suppliers, original equipment manufacturers (OEMs) and governments. The paper presents a solution based upon the enforcement of appropriate project management methodologies. This paper applies primarily to government owned oil and gas establishments in developing nations. However the effect of the wealth creation will benefit manufacturers and stakeholders the world over. Companies adopt different facets of project management strategies. The intent ranges from compliance to standards and regulations to being regarded as world class organizations. Some corporations even have an established Project Management Office. Regrettably, the top management may just be keeping the company running without appreciable growth. This paper aims at rekindling the desire for excellence and call for patriotic evaluation of intents and desires thereby reducing wastage of funds and other resources in the oil and gas industry. Due to "failed projects", OEMs are blacklisted by organizations. New OEMs and service companies are then engaged only to be also blacklisted when the projects do not produce the right results even when the faults are not from the OEMs or service companies. This paper will bring to light the actual causes of failed projects and attempt to exonerate the OEMs and service companies while providing the right platform for achieving ROI on every project undertaken.