oil and gas organizations
Onshore Shale Gas Production, Hydraulic Fracturing Issues reg. Please use UP and DOWN arrow keys to review autocomplete results. At the same time, independents like BG Group, Devon Energy, and EOG Resources grew increasingly successful in exploration and unconventional plays, but they still struggled to scale operations without copying the bureaucratic operating models of the majors. International Association of Geophysical Contractors. A new working environment and culture. Organizational agility. However, 14 percent of millennials say they would not want to work in the oil and gas industry because of its negative image—the highest percentage of any industry. Onshore Shale Oil Production, Water Management Issues reg. We believe the future oil and gas company will more closely resemble today’s industrial manufacturers, with a move away from tactical contractual arrangements and toward long-term strategic partnerships with a network of tier-one and tier-two suppliers. This not only resulted in fun experiments like a remotely controlled submarine built from an empty beer case but also yielded the prototype of Statoil’s new Cap-X subsea system, which cuts development and operating costs by up to 30 percent. Another trend is on-demand sabbaticals to support personal development via education, leisure, or time with family. While many companies tend to think they must make a trade-off between dynamism and stability, our research shows that agile organizations master both at the same time. The Sustainability reporting guidance for the oil and gas industry is a key tool to help companies shape the structure and content of their sustainability reporting. Christopher Handscomb is a partner in McKinsey’s London office, Scott Sharabura is an associate partner in the Calgary office, and Jannik Woxholth is a consultant in the Oslo office. As the most knowledgeable and influential accounting professionals in oil & gas… This explosion of data—combined with advanced analytics and machine learning to harness it—creates opportunities to fundamentally reimagine how and where work gets done. There will be new ways of managing people and performance. Artificial intelligence and machine learning are no longer science fiction, and human–machine interaction is becoming ever more frequent. We provide multiple ways to contact us - you can mail or call us for further information. In response to these disruptions, we see five big ideas for how organizations can adapt: 1. Keeping you informed on domestic oil and natural gas issues in Washington, DC. The International Association of Oil & Gas Producers (IOGP) is the voice of the global upstream oil and gas industry. However, many of these ideas could be self-reinforcing. There are 100s of upstream and downstream oil and gas companies based in the United States varying from large international players such as ExxonMobil and Chevron Corp., right down to … Onshore Shale Oil Production, Environmental Issues reg. 1 In 2010, it had 12 member countries — the founders … An oil and gas company, for example, has created an end-to-end production-delivery grouping with teams that have missions such as optimizing the production output of a specific asset. The millennial-managed organization. If you would like information about this content we will be happy to work with you. This is not a simple transition, however. Any one of these ideas would have far-reaching implications for oil and gas organizations. To carry out this mission, the Division of Mineral Resources regulates drilling and operation of all oil, natural gas, underground gas storage, and solution mining well… This organizational model is no longer sustainable with oil prices below $50 a barrel. It was founded in 1935 and authorized by Congress and the United States Constitution. Operations and Safety in Onshore Production, Permit Activities Issues of Onshore Exploration and Access, Access Questions State Issues reg. Moreover, an attractive workplace will include alternative career paths with more rapid progress cycles (40 percent of millennials expect a promotion every one to two years), horizontal career moves, and a flexible take on career progress, with temporary step-downs. We expect to see continued experimentation with models that recognize the differences, including separate business units or holding-company structures. Oil and gas companies may need more profound changes to meet demands for meaningful work and social responsibility to attract the next generation of top engineering and leadership talent. The Houston Chapter of the API is a nonprofit organization of oil and gas professionals dedicated to providing a forum for discussion of energy related issues and promoting actions to improve the energy … Millennials will constitute a majority of the US workforce by the early 2020s and have already started their climb into management and even executive roles. For instance, one engineering, procurement, and construction (EPC) firm was able to use advanced analytics to sift through thousands of capital projects and discovered a few simple practices that improved engineering productivity by more than 20 percent. Five big ideas for the oil and gas organization of the future. The International Energy Agency (IEA) is one of the larger organizations involved in the oil and gas industry. Interstate Oil & Gas Compact … By providing a forum for networking and career … RRC – Rail Road Commission (governs oil and gas production in Texas) RROCK – Routine Rock Properties Report; RRR – Reserve Replacement Ratio; RSES – Responsible for Safety and Environment on Site; RSPP – a publicly traded, oil and gas producer focused on horizontal drilling of multiple stacked pay zones in the oil … By rigorously standardizing the process, deployment time was reduced from two to three months to two to three weeks. In response to these disruptions, we see five big ideas for how organizations can adapt: 1. As they rise through the organization, millennials will bring their own ideas about collaboration, accountability, and the use of technology. 5-Year Leasing Plan incl. our use of cookies, and
It also means great improvements in workforce productivity. For instance, as oil and gas companies adopt a more agile way of working, they could become magnets for top millennial talent; millennials will accelerate the adoption of digital technologies, which could facilitate the dismantling of large corporate centers, which in turn allows for an even more agile workplace. To get at those hard-to-find, difficult-to-develop resources, companies built large, complex organizations with strong centralized functions. 3. Resource Assessment and Environmental Review, Environmental Rules and Regulations for Air, Group for Rules and Regulations reg. Press enter to select and open the results on a new page. We see three potentially game-changing disruptions that will lead oil and gas companies to rethink their operating models fundamentally: 1. These developments are driven in part by cost and market pressure, as costs have risen to unsustainable levels and operators must find cheaper ways of working. YPE Houston Leadership. Consequently, firms with a broad portfolio will feel the tension as they try to accommodate fast-paced, risk-taking operating models alongside slower, more risk-averse ones. The Interstate Oil and Gas Compact Commission (IOGCC) (link leaving DEC website) is a voluntary organization of oil and gas producing states. Digital is also an important enabler of organizational agility, for example, through instant access to information for frontline decision makers or via the real-time deployment of maintenance teams linked to predictive-maintenance algorithms—an Uber model for the oil field. The Energy Workforce & Technology Council is the national trade association for the oilfield services and equipment sector, representing more than 600,000 jobs in the technology-driven energy value chain. To succeed, this requires truly differentiated governance and performance metrics. Talent is no longer scarce, exploration capability is less of a differentiator, megaprojects are not the only way to grow, and market opportunities may only be economical for the earliest movers in a basin. In our view, agility combines two distinct concepts: dynamic capabilities, such as the ability to rapidly form cross-functional teams and reprioritize tasks to adapt quickly, and a stable backbone of core value-adding processes and cultural norms that provide resilience, reliability, and relentless efficiency. Never miss an insight. IPAA is a trade association founded in 1929 and headquartered in Washington, … DEC's Division of Mineral Resources mission is to ensure the environmentally sound, economic development of New York's non-renewable energy and mineral resources for the benefit of current and future generations. Moreover, the current market is pushing oil-field-services-and-equipment (OFSE) players to aggressively market integrated service packages, resulting in new partnerships formed out of mutual necessity. In extreme cases, we may even see total separations or spin-offs as the best way to manage the complexity—much as we have seen the long-term separation of downstream from upstream. Onshore Shale Gas Production, Access Questions State Issues reg. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The IOGCC's mission is to promote conservation and efficient recovery of domestic oil and natural gas … Vital for Colorado: Oil and gas generates more than $600 million per year in revenue for K-12 and higher education in Colorado, new research shows Click here to read the entire report from Vital for Colorado Key state lawmakers warn “we cannot ignore the contributions of oil and gas… For example, NASA, the Royal Bank of Scotland, and Virgin, among others, already use social networks such as Facebook, Slack, and Yammer instead of traditional intranet and file-sharing tools. But agility is … Young Professionals in Energy (YPE) is a non-profit organization with more than 10,000 members in its Houston Chapter. 4. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. For example, IOCs have already learned that they must copy successful US independents to profitably exploit unconventional resources and have set up separate units to operate these assets. New job classes and capability profiles will rise, and many of these (such as data scientists, statisticians, and machine-learning specialists) simply don’t exist in oil and gas companies today. For the dynamic elements to succeed, they must be linked to a stable backbone. Water in Onshore Production, Louisiana Mid-Continent Oil and Gas Association, US Oil & Gas Association Mississippi/Alabama Division. International Association of Drilling Contractors. The US Oil & Gas Association (originally the Mid-Continent Oil & Gas Association) was founded in October 1917 in Tulsa, Oklahoma, following the United States’ entry into World War I. Independent Petroleum Association of America. Looking for oil and gas accounting courses for new employees? The organization will be built around tasks and projects, rather than rigid hierarchies; teams may have no formal leader, instead leaving decision making to whoever has the relevant expertise. Millennials don’t just want personal career growth; they expect to make a positive contribution to society. The group, which describes itself as a local organization representing “citizens and officeholders, business owners and students” with more than 400,000 supporters, is funded by oil and gas … The Independent Petroleum Association of America is the national voice of U.S. independent oil and natural gas producers. Onshore Shale Gas Production, Air Issues reg. In particular, success in unconventional and late-life operations requires local coordination and integrated decision making at the front line—not layers of review from corporate. “Digital natives” in the driver’s seat will bring their own expectations of technology, collaboration, pace, and accountability. An example here is the default use of industry standards—with applications tailored by asset type—to create and enforce a simple but strong backbone. Teams will develop prototypes of new designs with a rapid, iterative “test and learn” mind-set, rather than going through cascading layers of review. Digital upends old models. Select topics and stay current with our latest insights, The oil and gas organization of the future. cookies, McKinsey_Website_Accessibility@mckinsey.com, reshaping the environment in which oil and gas companies operate. The collapse in crude prices has made large overhead costs unaffordable, and slow decision making has become a threat to long-term viability. Please try again later. Most transformations fail. Such ideas are gaining traction in the industry, with 17 international oil companies (IOCs) and national oil companies (NOCs) currently working together, through the World Economic Forum, to agree on standardized procurement specifications and pilots for ball valves, subsea trees, and low-voltage switchgear. Learn more about US Oil & Gas Association. A world of resource abundance is leading to sustained lower oil prices and a focus on cost, efficiency, and speed. Many human-resources functions are already investing in advanced analytics to mine large data sets about their workforce—training history, productivity, calendar and email, surveys, social-media profiles, and so on—to identify the drivers of employee performance, recruitment, retention, and employee engagement.