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Book Chapter

The Economic Value of a Synergistic Organization

By
Robert M. Sneider
Robert M. Sneider
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Published:
January 01, 1991

Abstract

Synergy is defined as the “action of discreet agencies so that the total effect is greater than the sum of the effects taken independently”. Within the context of the petroleum exploration and production business, synergy means that geologists, geophysicists, petroleum engineers and others work together on a project more effectively and efficiently as a team than working as a group of individuals (Sneider, 1986). The <u>synergistic team</u> approach has been tried by several large and small oil companies in the 1970's and 80's in order to compete more effectively and profitably with fewer staff and managers.

During the past sixteen years, I have had the opportunity to build or help build both small and large synergistic teams and organizations. Although it is relatively easy to measure qualitatively a group's performance, it is very difficult to evaluate quantitatively the technical and economic benefits of a synergistic team and organization versus that of other traditional E & P organizations. Also, it is very difficult to determine what are the critical ingredients that make one organization more effective, productive and profitable than another. The following “experiment” is the only attempt that I know of to help evaluate quantitatively the technical benefits and economic value of the “traditional” versus “synergistic” team approach in exploration and production.

“How can you really prove that synergistic teams are more effective and profitable?” This question was posed to me by a senior director (banker) of a large oil and gas company. I proposed an “experiment” that I thought

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Contents

AAPG Special Publication

The Integration of Geology, Geophysics, Petrophysics and Petroleum Engineering in Reservoir Delineation, Description and Management

Robert Sneider
Robert Sneider
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Wulf Massell
Wulf Massell
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Rob Mathis
Rob Mathis
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Dennis Loren
Dennis Loren
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Paul Wichmann
Paul Wichmann
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American Association of Petroleum Geologists
ISBN electronic:
9781629811192
Publication date:
January 01, 1991

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