“Teamwork” and “Integration”, the Golden Keys for the Growth and Development of Oil Industry

Gholam Reza Manouchehri: Deputy of Petroleum Minister

Different actors of the global economy need energy sources to stimulate their economy. Different Studies show that sources of hydrocarbon continue to be the main resources of energy until 2050. Examination of hydrocarbon resources and their geographical distribution shows that, by 2025, only five countries in the Persian Gulf (Iran, Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates) will be the major oil producers and Russia, Iran, Qatar, Saudi Arabia and the United Arab Emirates will be the five major gas producers. In view of this fact, proper implementation of oil, gas and petrochemical projects and integrated project design and management are among the main strategies to maintain our position in the global energy market. The integrated system of marketing strategic management, one of the main pillars of successful implementation of energy industries are based on the cost, time, quality, and efficiency. Iranian oil and gas industry on the horizon of year 1400, given the status this industry enjoys, is of great importance. In this regard, various purposes have been considered for this industry. Accordingly, it is scheduled that approximately 500 wells are drilled/ fixed annually and the need for drilling services must be considered in this regard. Furthermore, considering the prospects for new oil contract, rig and drilling service companies should be prepared to obtain the standards expected by international companies. In this regard, a glance at the strategy of other competitors and international companies is crucial. Strategic planning in Upstream Oil Industry of the world from the viewpoint of companies such as Saudi Aramco, StatOil/ Hydro in Norway, Japan’s Petroleum Institute, as well as major transnational companies, such as Total in France, the Royal Dutch Shell in Netherlands, ExxonMobil, Chevron and Conoco Philips is outlined as follows:

• Oil and gas exploration in areas inaccessible to ground (especially in the poles, hot deserts, deep waters, and offshore)

• Achieving better methods for extraction of petroleum, reducing drilling costs, production, and optimizing oil production

• Improving recovery coefficient (EOR, IOR)

• Management and access to modern methods of modeling and simulation of oil tanks

• Reducing potential damages to people and the environmen

t • Strategic point of view toward “Technology Management” and “knowledge management”

• Strengthening the company’s relationships with other firms on the one hand and with research institutes, research centers, and the academic world to advance long-term goals on the other hand

• Assets, joint ventures and evaluation, especially in research and development unit

• Energy security

“Considering the prospects for new oil contract, rig and drilling service companies should be prepared to obtain the standards expected by international companies“

These are common to all firms and countries that intend to play a role in the international arena. In addition to transnational companies’ technology and highlighting challenging areas, other important issues have been discussed in most firms. Thus, companies consider addressing them an important task. The most important of these can be summarized as:

Staffing, a greater challenge than development, and upgrading technology Young, talented and trained work force has always been one of the most fundamental issues of oil companies since 2006. In international meetings of World Petroleum Engineers held with participation of representatives of many large companies, shortage of work force needed in the oil industry and high cost of their education and training has been considered a challenge greater than developing and updating technology. Therefore, hiring inexpensive and trained work force is among the most important current and future plans of the world’s oil industry. Integration, the Golden Keys for the Growth and Development of Oil Industry.

“Concepts such as “integrated tank management,” “optimization during production” and “timely decision-making,” are the cases which have been formed by centrality and accepting the principle of “integration” to manage and its maximal use in various parts of the world oil industry“

The key to progress and progressive success of countries and companies active in the oil and gas industry can be outlined in this concept. In other words, the concepts of “teamwork” and “integrity” are the golden keys to the growth and development of the world’s oil industry. Concepts such as “integrated tank management,” “optimization during production” and “timely decisionmaking” have been formed by centrality and accepting the principle of “integration” to manage oil fields and their maximal use in various parts of the world oil industry. Accordingly, companies operating in the field of drilling rigs and services need to consider the following issues of significance in their strategic plan:

• Improvement of the quality of services, carrying out projects on time and thus clients’ satisfaction

• Improvement of engineering techniques through relationships with research centers, foreign consultants, domestic and foreign universities

• Reduction of drilling costs and optimizing production

• Participation in international tenders, providing crossborder services and exporting engineering service

• Development of expert human capital and young dynamic work force

• Upgrading with the latest scientific and technological achievements to promote professional activities, evaluation and continuous review of steps and stages of development in order to comply with the objectives and policies of the company

• Carrying out assessment studies on environmental impacts and monitoring analysis before and after drilling project