Driving superior returns through strategic alignment in oil and gas

2015 ◽  
Vol 55 (2) ◽  
pp. 434
Author(s):  
Matt Guthridge ◽  
Jason Miller
Keyword(s):  
North America ◽  
East Africa ◽  
Oil And Gas ◽  
Investment Decision ◽  
Strategic Alignment ◽  
Investment Environment ◽  
The Past ◽  
Strategic Execution ◽  
The Cost ◽  
Oil And Gas Companies

In the past decade, Australia has enjoyed significant investment in its LNG, gas and oil projects, with the combined value of projects at the publicly announced stage totalling A$197 billion. The cost of developing new LNG, gas and oil projects has escalated in the past 10 years, making Australia less competitive with locations such as North America and East Africa. The higher costs mean that many proposed projects, especially greenfield developments, will not reach a final investment decision. In this constrained investment environment, it is important for oil and gas companies to execute strategies that earn a strong return on the capital they employ. More than 200 Australian and Asian energy and resources executives were asked to rate their company’s strategic execution capability; this revealed that oil and gas companies that have strategically-aligned operating models earn higher returns on capital employed (ROCE). It was found that while 79% of respondents believe their organisations have the correct strategy in place, only 55% believe their organisation is executing their strategy well now. The research revealed that highly aligned oil and gas organisations are three times more likely to be executing successfully than their less aligned peers. Overall, the results imply that top teams who clearly align behind a strategy and successfully translate its intent throughout their organisations make better use of their invested capital. The level of strategic alignment is a key question for both oil and gas investors and company executives.

Understanding the Barriers to Offshore Green-Hydrogen Production

2021 ◽  
Vol 73 (10) ◽  
pp. 31-34
Author(s):  
Trent Jacobs
Keyword(s):  
Hydrogen Production ◽  
Oil And Gas ◽  
Single Atom ◽  
Carbon Footprints ◽  
Start Up ◽  
Technology Group ◽  
Abundant Supply ◽  
The Cost ◽  
Oil And Gas Companies ◽  
Green Label

The stage is set to begin making “green” hydrogen from the world’s abundant supply of seawater. But whether this niche-within-a-niche can stand on its own and become a competitive energy source remains uncertain. Today, only about 1% of man-made hydrogen is considered to be green, and not a single atom of it is produced offshore. In the offshore concept, the green label will be earned by splitting the hydrogen out of desalinated seawater with electrolyzers that run on renewable wind energy. This represents an opportunity for oil and gas companies to not just lower their carbon footprints, but to leverage billions of dollars’ worth of existing offshore infrastructure. Their platforms can host the electrolyzers. Their pipelines can transfer the product to shore. They may even be able to power their offshore facilities using the hydrogen produced at sea. Offshore producers should also have no problem finding a market. PriceWaterhouseCoopers said in a report from last year that green-hydrogen exports could be worth $300 billion annually by 2050, supporting some 400,000 jobs globally. However, the first set of offshore pilots are still in planning mode. It will take a few more years to assess the results once they start up. That means we may not know if offshore hydrogen is commercially viable until decade’s end. Some of the biggest barriers that must be overcome were highlighted by a panel of leading hydrogen experts at the recent Offshore Technology Conference (OTC) in Houston. Green Hydrogen in the Red “The major hurdle is still the cost,” explained René Peters. “The cost of hydrogen production with electrolysis is still extremely high compared to gray- and blue-hydrogen production.” Peters is the business director at the Dutch technology group TNO which is one of a dozen partners trying to launch PosHYdon, the pilot for offshore hydrogen production. Startup is expected by early 2023 on a normally unmanned oil and gas platform operated by independent oil and gas company Neptune Energy. Peters’ comments on cost were not relegated to the offshore aspect since all green hydrogen is made onshore today. In terms of tipping point for profitability, these are the relevant benchmarks.

Religion and Culture in Uganda

2019 ◽  
pp. 99-118
Author(s):  
David A. Hoekema
Keyword(s):  
North America ◽  
East Africa ◽  
Public Life ◽  
Historical Event ◽  
Traditional Beliefs ◽  
Beliefs And Practices ◽  
The Past ◽  
History Of ◽  
Muslim Communities

In the past two centuries, relations among Protestant, Catholic, and Muslim communities in Uganda have been marked by competition and mistrust more than cooperation. The interfaith initiative of northern religious leadersv is a noteworthy exception. In this chapter the history of these communities is briefly reviewed, setting the background for the group’s formation. An important historical event that helped bring Catholics and Protestants together was the execution of 45 Christian pages to the Buganda king in 1886. Mention is also made of the far more prominent role that religion plays in public life in East Africa than in Europe and North America, and of the persistence of traditional beliefs and practices.

scholarly journals VALUE ANALYSIS AS A METHOD OF INCREASING THE EFFICIENCY OF BUSINESS PROCESSES OF OIL COMPANIES

2018 ◽  
pp. 36-44
Author(s):  
Anna Nikolaevna Tarasova ◽  
Elena Prokofievna Karlina
Keyword(s):  
Cost Analysis ◽  
Business Process ◽  
Business Processes ◽  
Oil And Gas ◽  
Production Costs ◽  
Value Analysis ◽  
Oil Companies ◽  
Priority Areas ◽  
The Cost ◽  
Oil And Gas Companies

High rates of development of the world economy, unstable dynamics of demand and prices for hydrocarbon raw materials in the international market cause the need to search for domestic reserves to optimize production costs. The modern method of management aimed at solving this problem is the functional cost analysis of business processes, which allows not only to estimate the cost of the business process, but also to identify priority areas and sub-processes that require rationalization. The article highlights the history of the value analysis, its detailed characteristics. As a feature of the value method that differentiates it from the other methods of economic analysis there is given a systematic and complex approach to the studied object. It has been stated that earlier there was not conducted a complex research to find reserves for increasing the efficiency of oil and gas companies. This fact explains the need for the full consideration of the problem. There have been considered the stages of a logical realization of the value method. The algorithm of functional-cost analysis in relation to the oil and gas company is considered on the example of the business process “Exploration”, as a result of which its functional model is built. There have been shown the evaluating criteria of business processes for oil and gas producing companies: efficiency, productivity, cost of the process, operating capacity, duration and adaptability. The value diagram of cost coefficients of functions (sub-processes) has been presented. Detailed calculations of the cost factor for the function-subprocess “Oil and gas forecast” allowed to identify priority areas of cost optimization and to offer indicators for evaluating the effectiveness of the use of functional cost analysis in the implementation of project-oriented management in oil and gas companies.

scholarly journals Long-term Trends of Volatile Organic Compounds over the Texas, USA in the Past Two Decades

2021 ◽  
Vol 259 ◽  
pp. 01003
Author(s):  
Ruizhe Liu
Keyword(s):  
Volatile Organic Compounds ◽  
Organic Compounds ◽  
Oil And Gas ◽  
The Past ◽  
Volatile Organic ◽  
Long Term Trends ◽  
Secondary Air Pollutants ◽  
Secondary Air ◽  
Oil And Gas Companies

Volatile organic compounds (VOCs) are organic compounds in the air that have low vapor pressure. VOCs can be emitted from a variety of sources including biogenic, anthropogenic and pyrogenic processes. VOCs are precursors of aerosols and tropospheric 03. which harm human health. However, the potential of VOCs forming secondary air pollutants varies by species. Here, we analyze the long-term trends of soiu'ce. concentration and reactivity of six classes of VOCs from 1995 to 2018 over Texas. USA. VOCs emission from petroleum and related companies in Texas kept increasing these years. Among the VOCs tracers of oil and gas companies, the concentration of ethane kept increasing until 2015. Despite the increase of oil and gas related VOCs. the concentration of total VOCs and reactivity-weighted VOCs have decreased in the past two decades. We further investigate the seasonality of VOC reactivities, which depend on both temperature and VOC concentration. We find that VOC reactivity generally is highest in fall and lowest in spring, and such seasonality does not change over the two decades.

MARKET STRATIGRAPHY—THE 25-YEAR ODYSSEY OF THE AUSTRALIAN PUBLICLY-LISTED OIL AND GAS SECTOR (IS THE SMALLER E&P COMPANY THREATENED WITH EXTINCTION?)

2001 ◽  
Vol 41 (1) ◽  
pp. 803
Author(s):  
P.J. Cameron ◽  
J.G. Baird
Keyword(s):  
Oil And Gas ◽  
Oil Price ◽  
Market Sentiment ◽  
The Past ◽  
Exploration And Production ◽  
Substantial Investment ◽  
Production Company ◽  
Oil And Gas Companies ◽  
Risk Investment ◽  
Oil And Gas Sector

A market view of the population of publicly listed oil and gas companies during the past 25 years provides insights to the survival of the smaller exploration and production company. Mapping the life span of companies, and company population against parameters such as oil price and market activity, demonstrates that oil price is not the crucial driver for the industry as one would expect. The number of exploration companies existing at any one time is independent of oil price and discovery levels, but is more closely related to market sentiment and external influences. The benefits of success are apparent, but the vulnerability of smaller companies to that success is also apparent. While the ASX Energy Index has significantly out-performed the market, and the resources sector in general over this period, it is still considered a high-risk investment area, which fails to attract substantial investment funds.At a time of an apparently sustainable higher oil price, and record market levels, why is the level of new corporate activity so limited? In stratigraphic terms, is the survival of this species threatened? Was Darwin right—will the strong get stronger and will the small E&P company be driven to extinction?

Why North American markets have shifted to spoolable pipe versus traditional pipeline materials and its implications for Australian operators

2012 ◽  
Vol 52 (1) ◽  
pp. 345
Author(s):  
Nick Owens ◽  
Mike Feechan ◽  
Don McMillan
Keyword(s):  
North America ◽  
Glass Fibre ◽  
Oil And Gas ◽  
End Users ◽  
Welded Steel ◽  
The Past ◽  
Oil And Gas Fields ◽  
Glass Fibre Reinforced ◽  
Gas Fields ◽  
Installation Time

During the past 12 years, spoolable pipe has become a widespread preference for in-field gathering and injection applications compared to welded steel and stick fibreglass pipelines. It is now broadly used in oil and gas fields throughout North America, with more than 300 end users, including every major operator. To date, more than 25,000 km of spoolable pipe has been installed in North America for more than 450 operators. Fast installation, lower costs, safer installation, immunity to corrosion and low maintenance in service are the drivers for this rapid success. The technology is well on its way to displacing steel or stick glass-fibre reinforced epoxy (GRE) pipe as the technology of choice for lines up to nominal 6-inch in diameter. Compared to a single 8- or 10-inch line, companies are finding having multiple spoolable pipes in the same ditch to be more economical. Field results have demonstrated spoolable pipe’s immunity to corrosion and have also shown how using spoolable pipes can save 25% or more in costs when compared to overall installed costs for welded steel or stick fibreglass pipelines by significantly reducing onsite construction expense, installation time and onsite manpower requirements, including skilled welding personnel.

Oil and Petroleum Spill Waste Management Problems

2020 ◽  
Vol 24 (12) ◽  
pp. 66-71
Author(s):  
E.A. Mazlova ◽  
I.A. Merisidi
Keyword(s):  
Best Practices ◽  
Waste Management ◽  
Management Strategy ◽  
Oil And Gas ◽  
Material Resources ◽  
Secondary Pollution ◽  
Management Problems ◽  
The Cost ◽  
Oil And Gas Companies

The main approaches to planning activities for the management of waste spills, based on best practices, developed by oil and gas companies and associations, are analyzed. The problems of the accumulation and disposal of waste spills, the problems of preparing the waste for further disposal methods are indicated. The variety of spill waste does not allow to determine a universal way to manage this waste, therefore it seems necessary to develop a response and management strategy and include potential material resources for their disposal, equipment and technologies in the OSR plans, in order to avoid secondary pollution and minimize the cost of eliminating spills.

Front end loading: misunderstood or misapplied?

2016 ◽  
Vol 56 (1) ◽  
pp. 247 ◽  
Author(s):  
David Newman ◽  
Steve Begg ◽  
Matthew Welsh
Keyword(s):  
Outcomes Research ◽  
Predictive Models ◽  
Good Predictor ◽  
Oil And Gas ◽  
Investment Decision ◽  
Early Stages ◽  
Project Outcomes ◽  
Front End ◽  
Inside View ◽  
Oil And Gas Companies

Historically, oil and gas projects have struggled to achieve promised outcomes. Research has demonstrated that a good predictor of project outcomes is the level of front end loading (FEL) achieved at the final investment decision (FID). Specifically, projects with high levels of FEL have more predictable costs, shorter schedules and better production attainment. Anecdotally, however, the application of FEL within the industry is patchy, with many companies advocating its use but allowing projects to pass decision gates with incomplete levels of FEL. To understand why this occurs, the authors have interviewed more than 30 senior personnel from a range of oil and gas companies, asking them a series of questions about their understanding and acceptance of FEL. Those interviewed had significant experience, averaging more than 25 years in oil and gas, and more than 20 years’ experience on opportunities and projects. Results suggest that, while FEL is highly regarded and the concept is well understood, it is not always applied appropriately. It is used as a final hurdle—checking the level of FEL just prior to the FID—rather than as a guide from the early stages to determine what work needs to be focused on to achieve a good FEL score. Furthermore, lower FEL benchmark scores are often overridden by expert judgment, justified by a project’s unique characteristics, allowing it to proceed. This approach, focusing on the specific attributes of a project and ignoring general effects or predictive models such as FEL benchmarking, is referred to as taking an inside view and is known to produce inferior results, such as cost and time overruns. The authors argue that a stricter application of FEL and benchmarking predictions, integrating it from the early stages of projects and allowing overrides only in truly exceptional cases, will produce superior outcomes.

A Technical and Economic Comparison of Raised Face Versus Ring Joint Flanges

2013 ◽  
Author(s):  
Christopher D. Reichert ◽  
Barry Messer ◽  
Larissa C. Reichert
Keyword(s):  
North America ◽  
Construction Projects ◽  
Point Of View ◽  
Economic Data ◽  
The Past ◽  
Cost Differential ◽  
Piping Systems ◽  
New Construction ◽  
The Cost ◽  
Economic Comparison

On new construction projects, designers are frequently faced with the choice of whether to use raised face or ring joint flanges for piping systems. Often, decisions are made based on flange types used in the past, without due consideration for the merits of either style. On major piping projects, the decision can have significant and far reaching impacts for the owner of the facility, from a cost, constructability, and operational point of view. The authors of this paper studied several recent projects in North America and Europe and performed a technical comparison of the strengths and weaknesses of each style of flange. The authors also performed a comprehensive estimate of the cost differential between using the different styles of flanges. The provision of both technical and economic data in one paper is intended to provide a resource of data that designers need to make an informed decision about which style of flange to use.

Petroleum Resource Rent Tax: an update on recent developments

2012 ◽  
Vol 52 (2) ◽  
pp. 654
Author(s):  
Ian Crisp
Keyword(s):  
Oil And Gas ◽  
Due Diligence ◽  
Resource Rent ◽  
North West ◽  
The Past ◽  
The North ◽  
Petroleum Resource ◽  
Recent Developments ◽  
Key Issues ◽  
Oil And Gas Companies

Although the Petroleum Resource Rent Tax (PRRT) has been operating for longer than 20 years, the past few years have seen a significant amount of activity on this front: The announcement by the Australian government, on 2 July 2010, to expand the existing PRRTto include onshore oil and gas projects, including coal seam gas projects and the North West Shelf Project. The release of three ATO draft taxation rulings in 2010 about the pre-conditions for the deductibility of project expenditure, excluded expenditure (including indirect administration expenses) and the treatment of expenditure paid under ’sub-contractor’ arrangements. The courts’ decisions about the treatment of contract payments and the application of the PRRT taxing point. This extended abstract explores these developments as they apply to existing and new PRRT taxpayers, and identify the key issues that oil and gas companies will need to be aware of as they continue or commence compliance with the PRRT. This extended abstract also explores the impacts of these developments on transaction structuring, due diligence, financial modelling and fiscal certainty in the broader context of asset portfolios.

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