Marlan W. Downey, 1993. "Appropriate People and Proper Organization for Successful Exploration", Creating, Managing, and Evaluating Multidisciplinary Teams, Paul Ching, Marlan Downey, John Greene, John Masters, C. N. Tinker
Download citation file:
Discussions about being successful in the oil business sometimes presume that attention can be restricted to financial matters; that the real business is proper management of shareholders' risk capital. Finding an oil field with such a prudent allocation of risk capital is only part of the task of successful exploration managers. It is the leveraging of risk capital by human intelligence and innovation that yields extraordinary profits from exploration successes.
How does one aggregate the appropriate people and the proper organization to be successful? It is not easy to be successful, and it requires addressing numerous questions:
How important is the role of people in exploration success? Can one quantify the worth of staff contributions versus the contribution of risk capital? Are geologists and geophysicists really necessary for exploration success? Can investments in research and in training and motivating staff be justified on an economic basis? Is “Intellectual Capital” a real and measurable benefit to a company? (“Intellectual Capital” is defined as the net value provided an organization by its investment in non-operating technical staff.) Can companies see the worth of their “Intellectual Capital” investment reflected in their earnings? Can a corporation afford exploration staff in difficult economic times? What work structure is most useful in making money? What should we look for in hiring? In firing? . . . In organizing for project effectiveness? What are the responsibilities of exploration people to management?
Figures & Tables
Creating, Managing, and Evaluating Multidisciplinary Teams
The oil and gas industry has experienced major changes worldwide, including downsizing of professional staffs. Greater emphasis has therefore been placed on carrying on exploration and production with smaller, more efficient work teams of geoscientists and petroleum engineers together with land, legal, accounting, and administrative staff. This publication is a direct result of a course presented in October 1990, and focuses on the competitive advantages gained by recognizing the role of people and teams dovetailed with improved technology in exploration and development.