The Rules of the New Economy: Value Dynamics and the Implications to E&P Companies
Richard O. Berard, Jr., Victor A. Burk, 2000. "The Rules of the New Economy: Value Dynamics and the Implications to E&P Companies", International Oil and Gas Ventures: A Business Perspective, George E. Kronman, Don B. Felio, Thomas E. O’Connor, Mindy S. Kronman
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Oil and gas companies that have historically been a prudent investment opportunity have been performing poorly relative to other industries throughout the first few years of the New Economy era. This paper attempts to address these questions: Why? What can be done? Based on a 10,000 company multi-industry research endeavor, the primary building blocks of value creation are identified. These fundamental elements are adapted into five rules of the New Economy. These rules are then evaluated for acceptance and levels of integration within the E&P (exploration and production) industry Once it is established that the E&P industry has substantial room to improve in fully embracing the concepts of the New Economy and its methods of value creation, the concepts of value dynamics are discussed. It is through a Value Dynamic perspective that the process to E&P value creation in the New Economy is developed.
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A “one-stop” business view on how to succeed in international exploration and production. Success in the international upstream arena requires more than the technical ability to find oil and gas. Relationships with governments and people, mutually beneficial contracts, workable strategies, and implementation plans are necessary to build strong, mutually beneficial, and profitable ventures. Key components that drive exploration and production in the global environment are examined. Specific topics include negotiating for success, contracts, the role of technology in international strategies, cross-cultural relationships, alliances, and international upstream financing. Authors from around the world, representing industry, governments, national oil companies, consultants, and academia, contributed their perspectives. Views are provided from both sides of the negotiating table, the corporate boardroom, the resident manager, the explorationist, the businessman, and the theoretician. Geoscientists, engineers, and negotiators, who are, or would like to be, involved in the global energy business will find this collection an important reference.