BUILDING CULTURAL CAPITAL IN THE AUSTRALIAN OIL AND GAS INDUSTRY

2004 ◽  
Vol 44 (1) ◽  
pp. 771
Author(s):  
L. Doig ◽  
R. Griffiths ◽  
J. Robertson
Keyword(s):  
High Performance ◽  
Joint Venture ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Business Case ◽  
Middle Level ◽  
Gas Industry ◽  
Adaptive Challenges ◽  
Barriers To Growth

One of the key barriers to significant cost-savings and harnessing opportunities for growth in the Australian oil and gas industry is lack of trust, openness and misalignment between companies, among teams and among individuals.In research undertaken for APPEA’s Australian Competitive Energy (ACE) initiative over the last three years, one of the top three barriers to growth continually cited by senior and middle level managers has been culture and behaviours. Examples include misalignment between operators and contractors, management and the workforce, joint venture partners, industry and government, and the industry and the community.In the next five years, the Australian oil and gas industry is facing a skills shortage, technically challenging projects with less people and adaptive challenges. Adaptive challenges (Heifetz and Laurie, 2000) are ones where the:problems and solutions are unclear;the solution does not work through command and control;requires a new way of thinking and acting; andrequires the entire organisation to be engaged.Examples of adaptive challenges for our industry are:finding new gas markets;exploration in sensitive areas;high rig mobilisation costs for a small market; andretaining a skilled workforce.These challenges require companies to find new ways of:Attracting and keeping talented people;Increasing profits and shareholder value; andIncreasing creativity and productivity.Adaptive challenges can be achieved by building cultural capital.This paper outlines:Research and feedback from Australian Operations Managers, Supply Managers, Project Managers and Drilling Managers about the need for improving the culture and behaviours;The business case for why building a high performance culture is considered the competitive advantage of the 21st century;How to measure culture including the diagnostic tool used for the CEO workshop;Results from the diagnostic of the CEO group and implications;andHow to move forward individually, as companies and as an industry.The purpose of this paper is to foster debate and discussion about developing a high performing culture in the Australian oil and gas industry. We intuitively know that valuing our people makes good business sense. To transform the industry’s culture, it is not the organisations that transform, but the people. Shifting the culture requires leadership, courage and commitment from the industry’s senior management.

How to avoid aches and pains in your joint ventures

2016 ◽  
Vol 56 (2) ◽  
pp. 559
Author(s):  
Brent Steedman
Keyword(s):  
Joint Ventures ◽  
Joint Venture ◽  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Capital Allocation ◽  
Operating Efficiency ◽  
Global Business ◽  
Gas Industry ◽  
The Right

The Australian oil and gas industry is in a period of substantial challenges, including a significant decline in oil prices, fluctuating spot gas prices, a relentless drive for operating efficiency, and tight capital allocation, together with increased regulatory scrutiny and a reputation for below-standards productivity. On the upside, these market challenges provide significant opportunities for companies to bring in new investors, implement new operating models, apply innovation to update processes and practices, and restructure activities. Making material step-changes, requires companies to review, amend, and update joint venture operating agreements (JVOAs). KPMG has worked with many of Australia’s leading oil and gas companies on a range of joint venture engagements. This extended abstract outlines why JVOAs need to be reviewed with respect to the following key opportunities and challenges: Fast-changing global business operating models. Available cost savings by eliminating inconsistent management and operating models between joint ventures. Planning for potential restructuring, including separation of infrastructure (e.g. plants, pipelines, support) from reserve ownership. Sharing of services (e.g. maintenance and logistics) between unrelated joint ventures. Transparency of costs and asset performance. Improved joint venture governance (not more or over-governance) between participants to attract investment. Effective resourcing, noting the right transition of capabilities between deal-makers and joint venture operators. With this extended abstract the authors aim to provide ideas for consideration. Each of these ideas will impact JVOAs. The authors’ proposition is that now is the right time to complete a comprehensive review of JVOAs to enable organisations to move fast as new and innovative opportunities arise.

scholarly journals Cost and managerial accounting of joint activities related to the use of fixed assets

2018 ◽  
pp. 84-93
Author(s):  
Zenovii Zadorozhnyi ◽  
Valentyna Orlova ◽  
Sofiia Kafka
Keyword(s):  
Joint Venture ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Separate Entity ◽  
Managerial Accounting ◽  
Joint Operation ◽  
Gas Industry ◽  
Joint Activities ◽  
Fixed Assets ◽  
Joint Operations

The research paper reveals the essence of the concepts of joint activity, joint operation, and joint venture. A set of key features for classification of joint activities is identified and their impact on accounting of joint activities is assessed. The article also reviews the essential elements of accounting of joint activities in the light of International Financial Reporting Standards (IFRS), and characterizes the process of recording accounting entries related to basic operations, which depend on organizational forms of joint activities (a joint venture or a joint operation, with or without a separate entity). The paper provides a detailed description of three options for accounting of joint activities classified as joint operations, namely: joint operations without a separate entity; joint operations with a separate entity but without legal personality; a legal unit. Besides, a number of particular characteristics of measuring financial results from selling and purchasing assets within joint operations are identified. It is pointed out that one of the ways of effective use of fixed assets is promoting the implementation of managerial ac- counting of joint activities and internal reporting procedures of the results achieved. It is suggested that domestic enterprises of oil and gas industry should expand the practice of joint activities in order to effectively use fixed assets for oil and gas extraction and transportation. Before conducting joint activities, it is recommended that oil and gas industry enterprises compile initial calculations of their profitability at the level of managerial accounting. In the study, the following general and specific scientific methods of obtaining knowledge on economic phenomena are used: generalization, grouping and comparison, analysis, synthesis, induction and deduction, etc.

scholarly journals Independent Operations, Obligatory Operations and Challenge of Operator Provisions in Joint Venture Agreements

1970 ◽  
Vol 8 (2) ◽  
pp. 216
Author(s):  
W. G. Brown
Keyword(s):  
Joint Action ◽  
Joint Venture ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry

Although the concept of a joint venture is one of joint action, joint venture agreements in use in the oil and gas industry contain provisions for independent operations. This article discusses the need for independent operations clauses, the types of independent operations clauses, including obligatory operations clauses, the types of penalties and general problems which should be considered in the drafting of independent operations clauses. The article concludes with an analysis of the challenge of operator provisions in joint operating agreements.

scholarly journals Uranine as a Tracer in the Oil and Gas Industry: Determination in Formation Waters with High-Performance Liquid Chromatography

Water ◽  
2021 ◽  
Vol 13 (21) ◽  
pp. 3082
Author(s):  
Anna Król ◽  
Monika Gajec ◽  
Ewa Kukulska-Zając
Keyword(s):  
High Performance Liquid Chromatography ◽  
Liquid Chromatography ◽  
Groundwater Flow ◽  
Water Samples ◽  
High Performance ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Formation Water ◽  
Gas Industry

In the oil and gas industry, tracers are used to estimate residual oil saturation, to indicate the location and orientation of fractures in tight reservoirs, to identify and mark the direction of fluid flow in fractured deposits, to locate faults and discontinuities, and to measure fluid movement in injection wells during drilling. The tracers should behave in a mechanically similar manner to the tested substance, e.g., formation waters, oil or gas, and, on the other hand, they should significantly differ from them in terms of chemical properties so that it is possible to identify them. One of the fluorescent tracers used in the oil and gas industry, e.g., for inter-well tests during secondary or tertiary production methods (especially during reservoir hydration), is uranine. In order to assess the effectiveness of fluid movement measurements, it is necessary to determine the uranine content in formation waters. In this study, a method was developed to determine uranine in formation water samples using high-performance liquid chromatography with fluorescence detection (HPLC/FLD). The initial step in preparing samples for chromatographic analysis would be solid phase extraction (SPE). The method was validated and allows for the determination of uranine in formation water samples in the concentration range from 0.030 to 2.80 µg/L. The validation of the method included the analysis of factors influencing the measurement result (sources of uncertainty), determination of the linearity range of the standard curve, determination of the quantification limit of the method, and verification of the reproducibility, selectivity, stability and correctness achieved. The method developed within the study can be successfully applied in the case of the determination of uranine content in formation water samples from the oil and gas mining industry, which are often unstable and characterized by a relatively complex matrix. After validation, the method will also be applicable to the determination of uranine in matrices with a similar physicochemical composition, e.g., to assess groundwater flow in deformed carbonate aquifers or to characterize faults that act as barriers to horizontal groundwater flow.

Towards Implementing Condition-Based Maintenance (CBM) Policy for Offshore Blowout Preventer (BOP) System

2019 ◽  
Author(s):  
Tobiloba Elusakin ◽  
Mahmood Shafiee ◽  
Tosin Adedipe
Keyword(s):  
Oil And Gas ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Condition Based Maintenance ◽  
Gas Industry ◽  
Training Requirements ◽  
Blowout Preventer ◽  
Integrity Management ◽  
Maintenance Personnel ◽  
Oil And Gas Companies

Abstract With the steadily growing demand for energy in the world, oil and gas companies are finding themselves facing increasing capital and operating costs. To ensure the economic viability of investments and improve the safety of operations, oil and gas companies are promoting their asset integrity management (AIM) systems. In the past, the oil and gas industry adopted reactive maintenance regimes, which involved recertification, testing and repair of faulty equipment while trying to achieve minimum downtime. As technology becomes more affordable, operators have been able to carry out improved fault diagnosis, prognosis and maintenance optimisation. As a result of this, condition-based maintenance (CBM) is being adopted more and more as the preeminent maintenance regime for oil and gas equipment. The blowout preventer (BOP) is one of the most expensive and safety critical drilling equipment in the oil and gas industry. However, there have been very few studies and best practices about how to develop a CBM policy and what specific monitoring techniques and devices will be required to implement it for the BOP system. This paper proposes a V-model based architecture for designing a CBM policy in BOP systems. As a result of the model proposed, gaps in implementation are identified and all the hardware, software and training requirements for implementing the CBM solution in BOP systems will be outlined in detail. Our proposed CBM framework will help BOP operators and maintenance personnel make cost savings through less repairs and replacements and minimal downtime.

scholarly journals Review of Python Applications in Solving Oil and Gas Problems

2021 ◽  
pp. 13-22
Author(s):  
Edet Ita Okon ◽  
Dulu Appah ◽  
Joseph A. Ajienka
Keyword(s):  
High Performance ◽  
Oil And Gas ◽  
Operating Cost ◽  
Petroleum Industry ◽  
Oil And Gas Industry ◽  
Production Operation ◽  
Revolutionary Change ◽  
Gas Industry ◽  
Computing Services ◽  
Number Of Publications

Python has grown in popularity throughout various industries, corporations, universities, government, and research groups. Its true potential to automate various processes while increased predictability capabilities have been noticed in various industries. The petroleum industry is at the beginning phase of applying it to solve oil and gas problems. The rise in its popularity in the oil and gas industry is due to the digital transformation such as sensors and high-performance computing services that enable artificial intelligence (AI), machine learning (ML), big data acquisition, and storage in digital oilfields. A quick search on the number of publications in the oil and gas industry with the Society of Petroleum Engineers (OnePetro) in the past few years attests to this fact. Hence, it has proven to be a promising application that can bring about a revolutionary change in the oil and gas industry and transform the existing features for solving oil and gas problems. This will help the production and reservoir engineers to better manage the production operation without any need for expensive software. It will also reduce the overall operating cost and increase revenue.

The Texas Artificial Reef Program

2006 ◽  
Vol 40 (1) ◽  
pp. 62-72 ◽  
Author(s):  
Mark J. Kaiser
Keyword(s):  
Water Depth ◽  
Regression Models ◽  
Oil And Gas ◽  
Artificial Reef ◽  
Cost Savings ◽  
Oil And Gas Industry ◽  
Artificial Reefs ◽  
Gas Industry ◽  
First Order ◽  
The Cost

The National Fishing Enhancement Act (NFEA) of 1984 was designed to promote and facilitate efforts to establish artificial reefs for the purpose of enhancing fishery resources and commercial and recreational opportunities. In 1991, the Texas Artificial Reef Program was established based on the guidelines of the NFEA to provide a means for the oil and gas industry to donate their obsolete structures as artificial reefs. Currently, over 35 permitted reef sites from over 70 decommissioned platforms have been created offshore Texas. The purpose of this paper is to summarize the regulatory background of the Texas Artificial Reef Program, to discuss the nature of the cost savings associated with reef donation, and to derive first-order approximate relations that predict the donation amount. Statistical data describing the frequency of rig donations as a function of water depth and planning area are provided, and regression models of the donation are developed based on the structure size, water depth, removal method, and proximity of the platform to the permitted reef site.

Sign in / Sign up

Export Citation Format

Share Document