Will $80/bbl Oil Bring more Mergers, or more Spin-Offs?

Shrinking profits for whatever reason, can stimulate the M&A activity in any industry. We still remember consolidations in upstream sector following oil price crash in 1999, but what will happen this time if the oil price stays in the $80-$90 range, say for 6-12 month? Should we expect consolidations, or more spin-offs? According to EIA “shortfall between cash earnings […]

Interface and Integration Management in Major Capital Projects

Interface and Integration Management in Major Capital Projects; Why, Who, When and How? Why did I put Interface and Integration Management at the same level; frankly because in my experience although interface management is part of integration management, the weight of interface management is so significant to the success of project integration. Both are voted among top […]

Good, Bad and Ugly; World Energy Investment Outlook 2014

How can world invest wiser on energy? Problems, risks and opportunities in 2014-2035 world energy investment outlook.   Bad (I know, bad comes first here!) According to IEA in World Energy Investment Outlook 2014, 80% of  upstream oil & gas investment offsets output declines at today’s fields. Also one-third of power generation investment is to replace plants […]

How to Mitigate the Risk of Value Loss in E&P Mega-Projects (Project Risk)

How to mitigate the risk of value loss in E&P mega-projects; Oil and Gas project economics. In a keynote presentation at the 2014 Offshore Technology conference (OTC) in Houston, Texas, IPA Manager of Exploration & Production Neeraj Nandurdikar argued that in the last decade poor project execution and/or poor project selection practices have led to a […]

Canadian Oil sands; Suncor, Cenovus, and CNRL; Strategy Lessons to Share.

What strategy have the major oil sands players hired? lessons learned from oil sands pioneers. Despite of a low political and social risk environment, Canadian oil sands is still under pressure. This is while a handful number of pipeline projects are at negotiation stage to provide higher takeaway capacity. The heavy differential has narrowed from highs […]

Culture Eats Strategy for Breakfast!

How organizational culture can be the biggest risk to strategy implementation, and how to mitigate it. Upstream companies are distressed to improve their net profit. They have each formulated an strategy, but how supportive are their culture to those strategies. Their bottom line next year will largely be determined by their current strategies and success of their […]

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