1st Edition

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

    784 Pages 677 B/W Illustrations
    by CRC Press

    784 Pages 677 B/W Illustrations
    by CRC Press

    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 Industry
    A Multitiered Systems View
    Some Case Examples
    Energy Costs
    Education and Workforce Development Issues
    System of Systems Framework
    What Is System of Systems?
    What Is a Project System?
    What Is Systems Engineering?
    Embracing Project Management
    The Gasoline Pump System
    Quantitative Systems Modeling
    Cost–Schedule–Quality Constraints
    System of Systems Value Modeling
    Example of System Value Modeling
    Engineering Project Management
    Role of Emerging Nations

    Characteristics of Oil and Gas Projects
    Government Involvement
    Fate of Refineries
    Oil Sands Project
    BP to Invest $4 Billion in Gulf of Mexico in 2012
    Flak of Fracking
    Rules, Laws, Regulations, and Standards
    Keystone Oil Pipeline
    New Projects, New Project Management Opportunities
    Gas Export Project Management
    Case Example of Shell’s Use of PMBOK
    Hail to Project Management
    Project Management Improve Operations
    Technology Project Management
    Project Management Improves Well Control Events
    Oil Bunkering in Developing Nations

    Project Management Body of Knowledge

    Project Management Knowledge Areas
    Project Definitions
    Project Management System
    Project Management Processes
    Work Breakdown Structure
    Project Integration
    Project Sustainability

    Oil and Gas Project Communication
    Communications Management: Step-by-Step Implementation
    Complexity of Multiperson Communication
    Using the Triple C Model
    Typical Triple C Questions
    How to Accomplish Triple C Communication
    SMART Communication
    How to Achieve Cooperation
    Implementing Coordination
    Conflict Resolution Using Triple C Approach

    Critical Path Method for Oil and Gas Projects

    Activity Networks
    Critical Path Method
    The Critical Path
    Gantt Charts
    Schedule Compression
    Program Evaluation and Review Technique
    PERT Formulas
    PERT Example
    Precedence Diagramming Method
    Work Rate Analysis
    Work Rate Examples
    Team Work Rate Analysis
    Learning Curve Analysis

    The Drag Efficient: The Missing Quantification of Time on the Critical Path

    Drag and Drag Cost
    Impact of Critical Path on Project Investment
    Gaps in Traditional Critical Path Data
    Computing the Drag Cost of an Activity
    Computing the True Cost of an Activity
    A Concluding Anecdote

    Decision Tools for Project Management in the Oil and Gas Industry
    Process Operational Definition
    Culture and Attitude
    Quantifying Operational Efficiency
    Project Decision Analysis
    Supplier Selection Decision
    Wadhwa–Ravindran Supplier Selection Technique
    Weighted Objective Method
    Goal Programming
    Compromise Programming

    Project Schedule Forecast and Control: Reliable Schedule Forecasting in Federal Design–Build Facility Procurement

    Case Study Project Descriptions
    Research Question and Methods
    Analysis and Results

    Multiattribute Drilling System Selection

    Green Lake Case Study for System Selection Problems
    Sensitivity Analysis for Weight Factors of Each Attribute
    Sensitivity Analysis for Uncertainty of Overall Attribute Scores
    Knapsack Optimization Model

    Managing Construction Projects in Oil and Gas

    Shop Drawing and Materials Submittals

    Engineering Economics for Oil and Gas
    Cost Management: Step-by-Step Implementation
    Project Portfolio Management
    Project Cost Elements
    Basic Cash-Flow Analysis
    Time Value of Money Calculations
    Calculations with Compound Amount Factor
    Calculations with Present Value Factor
    Calculations with Uniform Series Present Worth Factor
    Calculations with Uniform Series Capital Recovery Factor
    Calculations with Uniform Series Compound Amount Factor
    Calculations with Uniform Series Sinking Fund Factor
    Calculations with Capitalized Cost Formula
    Arithmetic Gradient Series
    Internal Rate of Return
    Benefit–Cost Ratio Analysis
    Simple Payback Period
    Discounted Payback Period
    Time Required to Double Investment
    Effects of Inflation on Project Costing
    Mild Inflation
    Moderate Inflation
    Severe Inflation
    Break-Even Analysis
    Profit Ratio Analysis
    Project Cost Estimation
    Optimistic and Pessimistic Cost Estimates
    Project Budget Allocation
    Top-Down Budgeting
    Bottom-Up Budgeting
    Budgeting and Risk Allocation for Types of Contract
    Cost Monitoring
    Project Balance Technique
    Cost and Schedule Control Systems Criteria
    Elements of Cost Control
    Contemporary Earned Value Technique
    Activity-Based Costing
    Strategic Capital Rationing
    General Formulation of Budget Allocation Problem

    Project Risk Analysis
    Definition of Risk
    Sources of Project Uncertainty
    Impact of Government Regulations
    Case Example of Risk Analysis
    Risk Analysis by Expected Value Method
    Risk Analysis
    Expected Value Method for Project Risk Assessment
    Risk Severity Analysis Using the Concept of CLF and CIF
    Application of Monte Carlo Simulation
    Case Research of Spatial Risk Analysis of Oil Refineries within the United States
    Appendix A: Reservoir Monitoring and Management: A Project Management Approach
    Appendix B: Useful Units and Conversion Factors


    Adedeji B. Badiru, Samuel O. Osisanya