Project Management for the Oil and Gas Industry: A World System Approach, 1st Edition (Paperback) book cover

Project Management for the Oil and Gas Industry

A World System Approach, 1st Edition

By Adedeji B. Badiru, Samuel O. Osisanya

CRC Press

784 pages | 677 B/W Illus.

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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.

Table of Contents

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


About the Series

Systems Innovation Book Series

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Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Project Management
TECHNOLOGY & ENGINEERING / Engineering (General)
TECHNOLOGY & ENGINEERING / Operations Research