Abstract During the past few years, the oil and gas industry has been experiencing major changes worldwide, including a significant “downsizing” or “right-sizing” of professiOnal staffs. Greater emphasis is being 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. The future will judge if the new teams will give a competitive and economic edge to those companies who commit to this change in organizational structure. This course, "Creating, Managing and Evaluating Multidisciplinary Teams" grew out of a similar and very successful session given at the First Archie Conference in October 1990. Mr. Bob Millspaugh,AAPG's Educational Manager, recognized the value of this session and the great interest in the subject and recommended this course be given at the Annual Meeting to share the material discussed to a broader audience. The course is presented by five petroleum business and technical leaders, Paul Ching, Marlan Downey, John Greene, John Masters and myself.This group has a wealth of experience in building, leading, evaluating and rewarding integrated teams of geologists, geophysicists, petrophysicists, petroleum engineers, and computer scientists. The focus of this one-day course is on the competitive advantages gained by recognizing the role of people and teams dovetailed with improved technology in exploration and development. Emphasis is on several key subjects:

Abstract I am employed by Shell Western E&P Inc., a subsidiary of Shell Oil Company, USA., which is a member of the Royal Dutch Shell Group of Companies. I have worked for Shell for 19 years in many different capacities ...starting as a Field Engineer responsible for well evaluation and advancing through a series of assignments in engineering, economics, public affairs and operations, to my present position as Central Division Production Manager responsible for Production Department related activities in the eastern half of the United States. Don Peterson, former CEO of Ford, said in 1990, “those who come along with the team concept tend to be the more energetic, more creative, more positive thinkers, so it is a self-selecting third the leadership cadre”, a message where he identifies the types of people he found leading and participating in the team concept. Generally, he has observed that about a third of the people have actual tendencies to work in teams and that it will be these who pave the path forward for the others in the organization. Frank Richardson, the current CEO of Shell Oil Company, said, as he was introducing the Company's Team Awards for Excellence during 1990, “the knowledge, initiative and creativity of each individual are essential to continuous improvement, but when the strengths of many are focused on achieving a common goal, results can be exceptional”. CEOs, managers and supervisors have been searching for centuries for methods to effectively get many individuals to focus on achieving common goals. Literally

Abstract We began to build exploration teams about 12 years ago. Others are trying to do it now so Bob asked me to describe our procedure to you. He favors my approach because he considers it constructive damage to the status quo. All of you know how teams work technically. Maybe I can tell you something about the sociology. I tell it from the viewpoint of an explorationist––but it will work for us all.

Abstract Synergy is defined as the “action of discreet agencies so that the total effect is greater than the sum of the effects taken indepen-dently”. Within the context of the petroleum exploration and production business, syner-gy 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 Synergistic team 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

Abstract In the dynamic process of finding and producing oil and gas today, the utilization of computer enhance team technology is becoming increasingly important. During an era of eroded product prices, the need for low cost reserve replacement and optimized exploitation of producing fields is critical to the attainment of competitive rates of return on invested capital. The ramifications of the business environment on exploration and production organization, staffing, location and focus have been numerous and significant. The traditional organization of oil and gas companies was along discipline lines with little effort to integrate the professional skills of geology, geophysics, engineering and land management. In the last five years, there has been a meaningful restructuring of many exploration and production organizations. New multi-discipline teams encourage the technical interaction of geologist, geophysicist, engineer and land manager. Utilization of integrated data base systems and networked interactive workstations provide efficient access to the information needed to problem solve, interpret, and evaluate multidisciplinary projects. The effective blend of hardware and software, skilled professionals, team dynamics and a focused work plan is proving to be a competitive advantage. The results of such groups are being documented by many exploration, development and reservoir management successes. Publication of successful multidisciplinary team results is being seen more frequently in the industry's technical literature. Documented examples at Bay Marchand, Cognac, Eugene Island 360/361 and the Brae fields provide evidence of the improved understanding produced when geophysical, geological, petrophysical and production data are effectively integrated. Reserves added in these cases are

Abstract The Brae fields, operated by Marathon Oil (UK) Limited, are situated in Block 16/7 in the UK, North Sea. The first of the Brae fields was discovered in 1975 with the testing of a rich gas condensate accumulation, later named North Brae. Further drilling led to the discovery of three oilfields, West, Central and South Brae, and appraisal drilling concentrated on South Brae. After four wells had been drilled to appraise South Brae a fan delta sedimentary model was developed to explain the geology. The South Brae plan of development was based on this model. Early development drilling in 1983/4 came up with major surprises and indicated that the reservoir system was more complex than originally assumed. As the planned production profile appeared difficult to achieve a combined study involving geophysical, geological and reservoir engineering was instigated to understand the geological model and achieve optimal well locations. The available 2D seismic, although lacking in quality and resolution, was an essential part of this study. After a new geological model had been developed further development wells were more successful. This enabled the field to achieve predicted production rates and enabled an effective water-flood to be put in place to improve recovery. By 1982 North Brae had been appraised and the development plan for this reservoir was assessed using a compositional reservoir stimulator. Gas cycling with partial pressure maintenance was selected as the best development option. Prior to the platform being installed in 1987 a 3D seismic programme was completed. With experience gained from South Brae and integrating geological and geophysical interpretations a refined geological model was rapidly and efficiently developed. Subsequent development drilling was highly successful and the field produced at plateau rates earlier than expected. Reservoir simulation incorporating the complex geology confirmed that gas cycling was indeed the best option and that excellent recoveries could be expected. The multi-disciplinary study on South Brae successfully achieved its objectives and using the experience gained from this study enabled the development of North Brae to be rapidly optimised with excellent results.

Abstract 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?

Abstract 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.

Abstract Gus Archie stated, in the AAPG Bulletin during 1950, “Petrophysics pertains to the physics of particular rock systems whereas geophysics pertains to the physics of larger rock systems. It is the study of the physical properties of rock which are related to the pore and fluid distributions. These properties pertain to the detection and evaluation of hydrocarbon bearing layers.” Twelve years later, during an in-house conference at Shell, Bob Sneider said “The depositional environment is the important clue to the distribution and continuity of porosity, permeability, and barriers to fluid flow … even though the sand is altered by diagenesis.” During 1977 the Senior Technical Editor of the JPT. Joe Richardson, said “Great strides have been made in studies of how the environment of deposition can effect rock character. Conceptual models based on these studies combined with geophysical as well as engineering data from well tests, cores and logs provide the basis for a modern approach to reservoir description.” As a result of these seminal thoughts, the value of integrating disciplines that focus on the subsurface, namely” geophysics, petrophysics, geology and reservoir engineering, has become more and more apparent over three decades. Synergy is defined in Webster as “The cooperative actions of discrete agencies so that the total effect is greater than the sum of the effects taken independently.” How does one integrate independent disciplines into a synergistic team? Max DePree, in Leadership Is An Art provides a clue: “The first responsibility of a leader is to define reality. The