Finding common ground in
oil and gas

Now is the time for stronger collaboration on capital projects

On-time, on-budget, and on-spec delivery are ever more critical as the number of capital projects in the oil and gas industry continue to grow in size. Overruns, delays and increased risk directly impact the bottom line and the workforce, as well as supporting industries like mining, steel production, contracted goods and parts manufacturing. Project overruns are the biggest reason many large projects are scrapped.

Companies are building increasingly complex structures to find and produce hydrocarbons. These mega-projects in oil and gas come with significant inherent risk. Typically, this risk is managed though global joint venture (JV) partnerships across many companies, making collaboration critical among these partnerships. In our new industry study, 52 percent of respondents cited the delivery timeline as the biggest factor driving the need for better collaboration over the next three to five years.

To understand more about the current state of collaboration in oil and gas, we conducted the 2014 IBM Oil and Gas industry Study, speaking with industry leaders who represent about one-third of those 180 large global capital projects. We explored which collaborative approaches would be ideal and how to close any gaps.

We introduce the idea of a collaborative ecosystem to enhance collaboration inside and between companies. Proactive improvements in collaboration can enable organizations to manage projects more efficiently. To be transformative, collaboration has to strengthen the capabilities of the project’s people, processes and technology, all within a reliable, more secure environment.

Download the IBM Institute for Business Value Executive Report

About the authors

  • IBM

    Download the IBV App

    Access our latest thought leadership, including C-suite studies and industry insights. Maintain a library, receive regular updates. Explore enhanced content.

  • IdeaWatch Newsletter

    IdeaWatch Newsletter

    Sign up to receive monthly e-mail updates on recent papers from the IBM Institute for Business Value.