Project Management for the Oil and Gas Industry A World System Approach

Project management for oil and gas projects comes with a unique set of challenges that include the management of science, technology, and engineering aspects. Underlining the specific issues involved in projects in this field, Project Management for the Oil and Gas Industry: A World System Approach presents step-by-step application of project management techniques. Using the Project Management Body of Knowledge (PMBOK®) framework from the Project Management Institute (PMI) as the platform, the book provides an integrated approach that covers the concepts, tools, and techniques for managing oil and gas projects.The authors discuss specialized tools such as plan, do, check, act (PDCA); define, measure, analyze, improve, control (DMAIC); suppliers, inputs, process, outputs, customers (SIPOC); design, evaluate, justify, integrate (DEJI); quality function deployment (QFD); affinity diagrams; flowcharts; Pareto charts; and histograms. They also discuss the major activities in oil and gas risk assessment, such as feasibility studies, design, transportation, utility, survey works, construction, permanent structure works, mechanical and electrical installations, and maintenance.Strongly advocating a world systems approach to managing oil and gas projects and programs, the book covers quantitative and qualitative techniques. It addresses technical and managerial aspects of projects and illustrates the concepts with case examples of applications of project management tools and techniques to real-life project scenarios that can serve as lessons learned for best practices. An in-depth examination of project management for oil and gas projects, the book is a handbook for professionals in the field, a guidebook for technical consultants, and a resource for students.

World Systems Framework for Oil and Gas IndustryA Multitiered Systems ViewSome Case ExamplesEnergy CostsEducation and Workforce Development IssuesSystem of Systems FrameworkWhat Is System of Systems?What Is a Project System?What Is Systems Engineering?Embracing Project ManagementThe Gasoline Pump SystemQuantitative Systems ModelingCost–Schedule–Quality ConstraintsSystem of Systems Value ModelingExample of System Value ModelingEngineering Project ManagementRole of Emerging NationsReferencesCharacteristics of Oil and Gas ProjectsGovernment InvolvementFate of RefineriesOil Sands ProjectBP to Invest $4 Billion in Gulf of Mexico in 2012Flak of FrackingRules, Laws, Regulations, and StandardsKeystone Oil PipelineNew Projects, New Project Management OpportunitiesGas Export Project ManagementCase Example of Shell’s Use of PMBOKHail to Project ManagementProject Management Improve OperationsTechnology Project ManagementProject Management Improves Well Control EventsOil Bunkering in Developing NationsReferencesProject Management Body of KnowledgeProject Management Knowledge AreasProject DefinitionsProject Management SystemProject Management ProcessesWork Breakdown StructureProject IntegrationProject SustainabilityOil and Gas Project CommunicationCommunications Management: Step-by-Step ImplementationComplexity of Multiperson CommunicationUsing the Triple C ModelTypical Triple C QuestionsHow to Accomplish Triple C CommunicationSMART CommunicationHow to Achieve CooperationImplementing CoordinationConflict Resolution Using Triple C ApproachReferencesCritical Path Method for Oil and Gas ProjectsActivity NetworksCritical Path MethodThe Critical PathGantt ChartsSchedule CompressionProgram Evaluation and Review TechniquePERT FormulasPERT ExamplePrecedence Diagramming MethodWork Rate AnalysisWork Rate ExamplesTeam Work Rate AnalysisLearning Curve AnalysisThe Drag Efficient: The Missing Quantification of Time on the Critical PathIntroductionDrag and Drag CostImpact of Critical Path on Project InvestmentGaps in Traditional Critical Path DataComputing the Drag Cost of an ActivityComputing the True Cost of an ActivityA Concluding AnecdoteReferencesDecision Tools for Project Management in the Oil and Gas IndustryProcess Operational DefinitionCulture and AttitudeQuantifying Operational EfficiencyProject Decision AnalysisSupplier Selection DecisionWadhwa–Ravindran Supplier Selection TechniqueWeighted Objective MethodGoal ProgrammingCompromise ProgrammingReferencesProject Schedule Forecast and Control: Reliable Schedule Forecasting in Federal Design–Build Facility ProcurementIntroductionCase Study Project DescriptionsResearch Question and MethodsAnalysis and ResultsRecommendationConclusionsReferencesMultiattribute Drilling System SelectionIntroductionGreen Lake Case Study for System Selection ProblemsSensitivity Analysis for Weight Factors of Each AttributeSensitivity Analysis for Uncertainty of Overall Attribute ScoresDiscussionKnapsack Optimization ModelConclusionReferencesManaging Construction Projects in Oil and GasIntroductionShop Drawing and Materials SubmittalsReferencesEngineering Economics for Oil and GasCost Management: Step-by-Step ImplementationProject Portfolio ManagementProject Cost ElementsBasic Cash-Flow AnalysisTime Value of Money CalculationsCalculations with Compound Amount FactorCalculations with Present Value FactorCalculations with Uniform Series Present Worth FactorCalculations with Uniform Series Capital Recovery FactorCalculations with Uniform Series Compound Amount FactorCalculations with Uniform Series Sinking Fund FactorCalculations with Capitalized Cost FormulaArithmetic Gradient SeriesInternal Rate of ReturnBenefit–Cost Ratio AnalysisSimple Payback PeriodDiscounted Payback PeriodTime Required to Double InvestmentEffects of Inflation on Project CostingMild InflationModerate InflationSevere InflationHyperinflationBreak-Even AnalysisProfit Ratio AnalysisProject Cost EstimationOptimistic and Pessimistic Cost EstimatesProject Budget AllocationTop-Down BudgetingBottom-Up BudgetingBudgeting and Risk Allocation for Types of ContractCost MonitoringProject Balance TechniqueCost and Schedule Control Systems CriteriaElements of Cost ControlContemporary Earned Value TechniqueActivity-Based CostingStrategic Capital RationingGeneral Formulation of Budget Allocation ProblemReferencesProject Risk AnalysisDefinition of RiskSources of Project UncertaintyImpact of Government RegulationsCase Example of Risk AnalysisRisk Analysis by Expected Value MethodRisk AnalysisExpected Value Method for Project Risk AssessmentRisk Severity Analysis Using the Concept of CLF and CIFApplication of Monte Carlo SimulationCase Research of Spatial Risk Analysis of Oil Refineries within the United StatesAbstractIntroductionBackgroundMethodologyConclusionReferencesAppendix A: Reservoir Monitoring and Management: A Project Management ApproachAppendix B: Useful Units and Conversion FactorsIndex