Project overruns: why are we still getting it wrong?

2017 ◽  
Vol 57 (2) ◽  
pp. 489
Author(s):  
Gareth D. Lee ◽  
Simon P. Whitaker ◽  
Martin Wilkes
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Project Performance ◽  
Recent Experience ◽  
Considerable Effort ◽  
Gas Industry ◽  
The Past ◽  
Project Outcomes ◽  
Realistic Assessment ◽  
Common Problems

The issue of poor project performance in the oil and gas industry is not new. It has been discussed since the 1980s and, over the past 30 years, there has been considerable effort put into improving project outcomes. As an industry, we have invested heavily in project management and estimating processes to ensure that reliable data are available for investment decisions. However, recent experience in Australia and elsewhere in the world suggests that little real improvement has been made. This presentation critically examines aspects of project performance and decision making by analysing: the commercial impact that recent cost and schedule outcomes have had on Australian projects; common problems associated with setting and managing cost and schedule expectations throughout the project development process; real (anonymous) examples from projects to indicate how biases affect behaviours, decisions and outcomes; and simple ways to build a more realistic assessment of risk and uncertainty into cost and schedule estimates. We conclude by discussing why this is still important for future Australian projects given the days of complex greenfield megaprojects are likely behind us.

Technology Focus: Decarbonization (July 2021)

2021 ◽  
Vol 73 (07) ◽  
pp. 64-64
Author(s):  
Nigel Jenvey
Keyword(s):  
Business Models ◽  
Oil And Gas ◽  
Natural Capital ◽  
Ghg Emissions ◽  
Oil And Gas Industry ◽  
Policy Support ◽  
Continuous Change ◽  
Gas Industry ◽  
The Past ◽  
Technology Focus

Have you noticed the change in the oil and gas industry over the past year with its engagement in carbon management, decarbonization, and net-zero-emissions targets? Policy support and technology advances in alternative energies have delivered massive cost reduction in renewables more quickly, and to a greater degree, than expected. Over the past few years, more of the world’s capital has been spent on electricity than oil and gas sup-ply, and more than half of all new energy-generation capacity is now renewable. Some elements of society, therefore, have suggested that this is the beginning of the end for the fossil-fuel sector and call for investors to turn away from oil and gas and “leave it in the ground.” In more than a century of almost continuous change, however, the oil and gas industry has a long track record of innovative thinking, creative solutions, and different business models. SPE papers and events that covered decarbonization during the past year show that a wide variety of solutions already exist that avoid, reduce, replace, offset, or sequester greenhouse gas (GHG) emissions. It is clear, therefore, that decarbonization technologies will now be as important as 4D seismic, horizontal wells, and hydraulic fracturing. That is why we now bring you this inaugural Technology Focus feature dedicated to decarbonization. The experience and capability of the entire JPT community in decarbonization is critical. Please enjoy the following summary of three selected papers on the role of natural gas in fuel-switching; carbon capture, use, and storage (CCUS); and hydrogen technologies that deliver the dual challenge of providing more energy with less GHG emission. There are many ways to engage in the SPE decarbonization efforts in the remainder of 2021. Regional events have addressed CCUS, hydrogen, geothermal, and methane. There is also the new SPE Gaia sustainability program to enable and empower all members who wish to engage in the alignment of the future of energy with sustainable development. The Gaia program has an on-demand library of materials, including an existing series on methane, and upcoming similar events on other energy transition, natural capital and regeneration, and social responsibility priorities. Get involved through your SPE section or chapter or contact your regional Gaia liaison to find out what Gaia programming you can support or lead at www.spe.org/en/gaia.

Case Histories of the Resolution of Bolted Joint Leakage in the Oil and Gas Industry

2016 ◽  
Author(s):  
Warren Brown ◽  
Geoff Evans ◽  
Lorna Carpenter
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Lessons Learned ◽  
Bolted Joint ◽  
Case Histories ◽  
Gas Industry ◽  
Root Cause ◽  
The Past ◽  
Cause Of Failure ◽  
Assessment Techniques

Over the course of the past 20 years, methods have been developed for assessing the probability and root cause of bolted joint leakage based on sound engineering assessment techniques. Those methods were incorporated, in part, into ASME PCC-1-2010 Appendix O [7] and provide the only published standard method for establishing bolted joint assembly bolt load. As detailed in previous papers, the method can also be used for troubleshooting joint leakage. This paper addresses a series of actual joint leakage cases, outlines the analysis performed to determine root cause of failure and the actions taken to successfully eliminate future incidents of failure (lessons learned).

DECISION TYPE—A KEY TO REALISING THE POTENTIAL OF DECISION MAKING UNDER UNCERTAINTY

2007 ◽  
Vol 47 (1) ◽  
pp. 309 ◽  
Author(s):  
S.I. Mackie ◽  
S.H. Begg ◽  
C. Smith ◽  
M.B. Welsh
Keyword(s):  
Decision Making ◽  
Real World ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Decision Making Under Uncertainty ◽  
Gas Industry ◽  
The Past ◽  
Decision Outcomes ◽  
Decision Type ◽  
Definition Of

Business underperformance in the upstream oil and gas industry, and the failure of many decisions to return expected results, has led to a growing interest over the past few years in understanding the impacts of decisionmaking tools and processes and their relationship to decision outcomes. A primary observation is that different decision types require different decision-making approaches to achieve optimal outcomes.Optimal decision making relies on understanding the types of decisions being made and tailoring the type of decision with the appropriate tools and processes. Yet the industry lacks both a definition of decision types and any guidelines as to what tools and processes should be used for what decisions types. We argue that maximising the chances of a good outcome in real-world decisions requires the implementation of such tailoring.

Financing alternatives in a changing gas landscape

2014 ◽  
Vol 54 (2) ◽  
pp. 516
Author(s):  
James MacGinley ◽  
Brad Calleja
Keyword(s):  
Oil And Gas ◽  
New Technologies ◽  
Oil And Gas Industry ◽  
Project Finance ◽  
Export Credit ◽  
Gas Industry ◽  
The Past ◽  
New Development ◽  
Credit Agency ◽  
Global Banks

In recent years, Australia has gone through an unprecedented expansion in its oil and gas industry. The demand for capital has been enormous and has resulted in some of the largest project debt financings globally. In the coming years, the funding requirement will change dramatically as projects reach completion; become cash-flow positive; and, owners changing their funding structure from project finance debt to lower cost, lower covenant corporate debt. The development of a number of Australia’s largest oil and gas projects during the past five years coincided with a tightening of capital from the traditional project finance market. This lead to the emergence of export credit agency financing as an integral component of project development. During the past year, however, re-capitalisation of global banks are now re-entering the Australian market and are driving competition and increasing liquidity. This extended abstract covers a review of the funding approaches taken on major Australian LNG projects, including lessons from the funding of CSG projects that may be relevant to other new development markets such as shale gas. It also draws on historical lessons of funding new technologies and provide insight about funding of the next wave of LNG development: floating LNG. The National Australia Bank is one of the largest resources project finance banks globally and is well positioned to provide APPEA’s delegates with relevant insight about the future of debt funding in the oil and gas industry.

Formation of the Structure and Properties of Epoxy-Based Composite Materials

2020 ◽  
Vol 992 ◽  
pp. 336-340
Author(s):  
V.A. Gafarova ◽  
J. V. Bazrova ◽  
L.Z. Teltsova
Keyword(s):  
Composite Materials ◽  
Epoxy Resins ◽  
Structural Integrity ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Structure And Properties ◽  
Gas Industry ◽  
The Past

Over the past fifteen years, Russian and foreign scientists have conducted a large amount of research in the development and use of composite materials based on epoxy resins, including the ways to restore structural integrity. In the oil and gas industry, composite materials are used for repair works.

EPCM contracting: clearing the minefield

2014 ◽  
Vol 54 (1) ◽  
pp. 231
Author(s):  
Julie Whitehead ◽  
Karen Walters
Keyword(s):  
Construction Management ◽  
Oil And Gas ◽  
Standard Form ◽  
Oil And Gas Industry ◽  
Project Delivery ◽  
Risk Allocation ◽  
Infrastructure Projects ◽  
Gas Industry ◽  
Optimum Performance ◽  
The Past

The past year has seen a downturn in the number of new mining and infrastructure projects in Australia. Despite that, the authors are noticing a continuation of the trend towards a greater use of engineering, procurement and construction management (EPCM) style contracting. The increased use of EPCM contracts is in part due to projects becoming larger and more complex. As these projects can only be delivered by multiple contractors who all seek to limit their liability, the EPCM contract offers a useful framework for coordinating and managing those contractors, and maximising the owner’s recourse to them. This is particularly so in the oil and gas industry, with many projects using this form of project delivery. As there is no standard-form EPCM contract, however, and given the complex technical nature of these types of projects, negotiating an EPCM contract can be fraught with danger, especially for owners who may not have used this style of contract before. This paper discusses the unique characteristics of the EPCM contract (particularly in contrast to the engineering, procurement and construction style contract), the typical risk allocation, and the creative use of compensation and incentive regimes to drive optimum performance. The EPCM model is not suited to all projects, but if it is appropriately negotiated and drafted, and is well managed by an appropriately skilled and resourced owner’s team, it can provide a platform for excellence in project delivery.

Long-distance commuter workforce

2013 ◽  
Vol 53 (2) ◽  
pp. 467
Author(s):  
Liesl Verwoert
Keyword(s):  
Population Growth ◽  
Government Policy ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Geographic Mobility ◽  
Long Distance ◽  
Gas Industry ◽  
The Past ◽  
Commuting Patterns ◽  
Mobility Study

Australia’s resources industry has experienced record growth and a strong demand for labour during the past decade. Much of this demand is occurring in remote parts of Australia and is met by population growth of resident and non-resident long-distance-commuter (LDC) workers. LDC workers are defined as those who travel significant distances between where they usually live and work, and include fly-in/fly-out and drive-in/drive-out workers. While the LDC workforce is not new, the scale of this phenomenon and the shift in commuting patterns among this workforce to meet Australia’s evolving labour demands is unprecedented. KPMG have quantified the size and distribution of the LDC workforce by industry and region across Australia. This was part of a ground-breaking workforce mobility study commissioned by the Minerals Council of Australia (in conjunction with APPEA and Skills DMC). Findings from this study answer the following questions: To what extent has the size of the LDC workforce increased in the past five years up to 2011? How does the prevalence of long-distance commuting in the oil and gas industry compare with other industries? What are the top three resource regions that attract LDC workers and what do the commuter routes look like? This extended abstract contributes to our knowledge base about the geographic mobility of the Australian workforce. It reveals the LDC workforce facts and thereby helps guide industry and government policy to ensure the economic and social prosperity of Australia’s resource regions and their residents and workers.

Inspiring the Next Generation

2007 ◽  
Vol 01 (02) ◽  
pp. 05-06
Author(s):  
Tony Meggs
Keyword(s):  
Young People ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Next Generation ◽  
Gas Industry ◽  
The Past ◽  
The Future

Executive Perspective - Attracting, developing, and inspiring the talented young people who will lead the oil and gas industry into the future is one of the biggest challenges facing our industry today. Creating this future will be at least as exciting and demanding as anything we have experienced over the past 30 years.

Seismic field data displaying azimuthal anisotropy, 1986–2020

2020 ◽  
Vol 8 (4) ◽  
pp. SP135-SP156
Author(s):  
Heloise Lynn
Keyword(s):  
Field Data ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
In Situ Stress ◽  
Azimuthal Anisotropy ◽  
Amplitude Variation ◽  
Gas Industry ◽  
The Past ◽  
Vertically Aligned

The azimuthal (az’l) processing of 3D full-azimuth full-offset P-P reflection seismic data can enable better imaging, thus yielding improved estimates of structure, lithology, porosity, pore fluids, in situ stress, and aligned porosity that flows fluids (macrofracture porosity). In the past 34 years, the oil and gas industry has significantly advanced in the use of seismic azimuthal anisotropy, in particular, to gain information concerning unequal horizontal stresses and/or vertically aligned fractures, and possibly more importantly, to improve the prestack imaging especially in complex structure. The important development stages during the past 40 years were enabled by industry advancements in acquisition, processing, theory, and interpretation. The typical important techniques became evident in PP amplitude variation with angle and azimuth (AVAaz) and orthorhombic imaging. These techniques addressed the complications due to wave propagation in birefringent media. PP AVAaz, now industry standard for vertically aligned fracture characterization, is accompanied by a near-angle azimuthal amplitude variation when aligned connected porosity that flows fluids is present. Birefringence is present with unequal horizontal stresses and/or vertically aligned fractures that flow fluids. I have focused on the field-data documentation of the relationships among azimuthal P-P reflection data, S-wave birefringence, and hydrocarbon production. With increases and improvements in acquisition and processing, plus today’s powerful versatile interpretation platforms, continual advances beyond orthorhombic (ORT) into monoclinic and triclinic symmetries are to be expected. The use of 3D azimuthal seismic for time-lapse changes of the in situ stress field, fracture populations, and pore fluids, as rocks undergo production processes (oil and gas reservoir production processes, wastewater disposal, etc.) and at plate boundaries where stresses change, offers great potential to benefit not just the oil and gas industry but all of humanity.

Drillstring Vibration Observation, Modeling and Prevention in the Oil and Gas Industry

2014 ◽  
Author(s):  
Roman J. Shor ◽  
Mitch Pryor ◽  
Eric van Oort
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Vibrational Modes ◽  
Stick Slip ◽  
Gas Industry ◽  
The Past ◽  
Bit Wear ◽  
Modes Of Vibration ◽  
Dynamics Models ◽  
Downhole Sensors

As well designs become increasingly complicated, a complete understanding of drillstring vibrations is key to maximize drilling efficiency and reduce bit wear as well as prevent drillstring, tool, and borehole damage. This paper presents a review of the past fifty years of work on drillstring dynamics models and the proposed and accepted vibration mitigation applications within the drilling industry. Early modeling began with simplistic models in efforts to understand downhole processes. Once downhole sensors were deployed and the basic modes of vibration were understood, proprietary systems were developed and — only recently — successfully deployed to detect and mitigate the effects of certain undesired vibrational modes, specifically stick-slip torsional vibrations. Future systems and their effectiveness will depend on a refined understanding of the various modes of vibration and their interaction, as well as improved real-time downhole sensing techniques. Implementation of high-fidelity models to deduce and correct the downhole drillstring state will subsequently improve the operational drilling efficiency.

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