E&P transforms mortals into believing they are supermen: Tom Bower!
I reviewed the text of Tom Bower’s talk at Petrotech 2014. The argument is strong and articulates why E&P outside the ‘patronage’ of top IOC’s is a failure. Tom says – “Only a handful of major oil corporations have the expertise to develop the difficult oil and gas reserves”.
It is possible that complete dependency on IOC’s is the fait accompli for the E&P. It is possible that E&P pursues approaches of other highly knowledge intensive sciences and technologies to become independent.
Ehtics, Discipline, Innovation, Technology, and Persistence seem to have given IOC’s the advantage. Other E&P companies do not have long-term approach to all of these.
We have 2 options: 1) Accept Tom’s complete dependency theory or 2) Develop 21st Century alternative E&P model
In my earlier presentation on BIG CREW CHANGE -{ http://www.slideshare.net/srikantg/the-reality-of-big-crew-change-in-ep }, I argued how E&P as Science and Technology is NOT TRANSFORMATIONAL.
This Presentation draws upon Tom Bower's talk to showcase the poor performance of most E&P companies and the possible way out!
IT MATTERS TO YOU. Your Petrol/Gasoline price is related to E&P efficiency!!
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Only IOC are capable of being successful in E&P?
1. TECHNOLOGY ~ E&P INDUSTRY
Tom Bower’s
Petrotech 2014 keynote
The Squeeze : IOCs control the success in E&P
In my opinion, one lesson can be drawn.
Only a handful of major oil corporations
have the expertise to develop the difficult
oil and gas reserves
2. Summary
1. Tom Bower’s speech in Petrotech 2014 argued the ‘consistent failure’ of E&P
ventures functioning outside the support of big IOCs
2. Dependency on competencies, processes and nuances of oil majors is shown
as inevitable. IOCs are the only with reliable skills!
3. Proof is drawn from Russia, S.America and Middle-East. “Only a handful of
experts under the management of American and European corporations
can manage the E&P efficiently,
Is it the FINAL WORD?
1. E&P is highly integrated and complex - few other industries also have it.
2. Unlike E&P other knowledge intense industries DO NOT have the strangle-
hold “Squeeze” of few dominant players.
3. A number of successes with more complex knowledge exists
4. E&P’s sciences and technologies are arguably the lowest in adapting
information central approach & crowd-sourcing: Laggard?!
5. Work ethics, intelligent, driven and committed oil men and women are
difficult in places where E&P failed (including India)
We have 2 options: 1) AcceptTom’s complete dependency theory or 2) Develop
21st Century alternative E&P model
4-Jul-14CONFIDENTIAL NOTE 2
3. Tom’s points :
Uncertainty & Reliable Technology
Predictions proven to be
so unreliable
Uncertainty to breed
contempt for industry
Public seize any
opportunity to attack
the oil corporations for
profiteering
No one tells the TRUTH
Exxon, Shell, BP,
Chevron &Total: oil
majors areTHE (only)
SUCCESSFUL!
Their skills enhance the
industry.
They bring RELIABILITY
of technology to handle
uncertainty
They run E&P on science
and principles.
4-Jul-14CONFIDENTIAL NOTE 3
Common Experience in E&P
4. Making of IOCs as Successful players
IOC
Abide by rigid engineering
(scientific) discipline
Initiate and manage
technical innovation.
Don’t attempt short-cuts,
(fly-by-night | depend on
hired guidance) , cost-cutting,
or random risk - losing the
gamble.
Clear approach to Innovation,
Technology, Ethics, Integrity,
Discipline and Measurement.
Other E&P
Ethics, Integrity & Discipline:
All-bodies always follow it.
Innovation: Everybody’s job!
Anybody, Somebody, &
Nobody owns it! It all
happens by itself?!
Technology: follows
innovation. It is always at its
optimum?!
Measure only financial and
absolutely mandatory data!!
4-Jul-14CONFIDENTIAL NOTE 4
E&P transforms mortals into believing they are supermen
5. To Be or Not to be
1. - Become top global HC
producer
2. - Reach top of HC value
chain in a country/region
3. - Get Respected as Partner
of choice by stakeholders
4. - Develop and Retain best
in class “people, processes
& technologies”
5. - Establish a good
governance & risk
management
All E&P companies wish
Tom Bower demonstrates
that just a handful realize
it.
INNOVATION is not a
faint, random, chance
event
TECHNOLOGY is a
systematic continuous
program
ETHICS, INTEGRITY,
DISCIPLINE are the
foundation
4-Jul-14CONFIDENTIAL NOTE 5