Integrated Operations in the Oil and Gas Industry: Sustainability and Capability Development PDF
Preview Integrated Operations in the Oil and Gas Industry: Sustainability and Capability Development
Integrated Operations in the Oil and Gas Industry: Sustainability and Capability Development Tom Rosendahl BI Norwegian Business School, Norway Vidar Hepsø Norwegian University of Science and Technology (NTNU), Norway Managing Director: Lindsay Johnston Senior Editorial Director: Heather A. Probst Book Production Manager: Sean Woznicki Development Manager: Joel Gamon Development Editor: Myla Merkel Assistant Acquisitions Editor: Kayla Wolfe Typesetter: Nicole Sparano Cover Design: Nick Newcomer Published in the United States of America by Business Science Reference (an imprint of IGI Global) 701 E. Chocolate Avenue Hershey PA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: [email protected] Web site: http://www.igi-global.com Copyright © 2013 by IGI Global. All rights reserved. No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI Global of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Integrated operations in the oil and gas industry: sustainability and capability development / Tom Rosendahl and Vidar Hepso, editor[s]. p. cm. Includes bibliographical references and index. Summary: “This book covers the capability approach to integrated operations in the oil industry, referring to the combined capacity and ability to plan and execute in accordance with business objectives through a designed combination of human skills, work processes, organizational change, and technology”--Provided by publisher. ISBN 978-1-4666-2002-5 (hbk.) -- ISBN 978-1-4666-2003-2 (ebook) -- ISBN 978-1-4666-2004-9 (print & perpetual access)1. Petroleum industry and trade--Management. 2. Petroleum industry and trade--Information technology. 3. Gas industry--Management. 4. Gas industry--Information technology. I. Rosendahl, Tom. II. Hepsø, Vidar HD9560.5.I5525 2013 665.5068’4--dc23 2012009946 British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. All work contributed to this book is new, previously-unpublished material. The views expressed in this book are those of the authors, but not necessarily of the publisher. List of Reviewers Erik Albrectsen, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway Asbjørn Egir, Astra North, Norway Martin Eike, Kongsberg Oil & Gas Technologies, Norway Cathrine Filstad, BI Norwegian Business School (BI), Norway Lisbeth Hanson, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway John Henderson, Boston University, USA Vidar Hepsø, Norwegian University of Science and Technology (NTNU), Norway Margit Hermundsgård, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway Jan Terje Karlsen, BI Norwegian Business School (BI), Norway Torbjørn Korsvold, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway Gunnar Lamvik, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway Sjur Larsen, NTNU Social Research, Norway Øyvind Mydland, Stepchange Global, Norway Grete Ose, The Norwegian Marine Technology Research Institute (MARINTEK), Norway Lone Ramstad, The Norwegian Marine Technology Research Institute (MARINTEK), Norway Tom Rosendahl, BI Norwegian Business School (BI), Norway Grethe Rindal, Institute for Energy Research (IFE), USA Kari Skarholt, Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF), Norway Ann-Brit Skjerve, Institute for Energy Research (IFE), USA Trygve J. Steiro, Norwegian University of Science and Technology (NTNU), Norway Detailed Table of Contents Preface ................................................................................................................................................xvii Acknowledgment ............................................................................................................................xxviii Section 1 Introduction and Definitions Chapter 1 What is a Capability Platform Approach to Integrated Operations? An Introduction to Key Concepts ..........................................................................................................................................1 John Henderson, Boston University, USA Vidar Hepsø, Norwegian University of Science and Technology (NTNU), Norway Øyvind Mydland, Stepchange, Norway Section 2 People, Process, Governance, and Technology Capabilities Chapter 2 How Integrated Operations has Influenced Offshore Leadership Practice ...........................................21 Kari Skarholt, SINTEF, Norway Lisbeth Hansson, SINTEF, Norway Gunnar M. Lamvik, SINTEF, Norway Chapter 3 Creating an IO Capable Organization: Mapping the Mindset ..............................................................40 Bjørn-Emil Madsen, SINTEF, Norway Lisbeth Hansson, SINTEF, Norway Jan Eivind Danielsen, Bouvet, Norway Chapter 4 Collaborative Work Environments in Smart Oil Fields: The Organization Matters! ...........................59 Ewoud Guldemond, Atos Consulting, The Netherlands Chapter 5 Connecting Worlds through Self-Synchronization and Boundary Spanning: Crossing Boundaries in Virtual Teams ....................................................................................................................................76 Cathrine Filstad, BI Norwegian Business School, Norway Vidar Hepsø, Norwegian University of Science and Technology (NTNU), Norway Kari Skarholt, SINTEF, Norway Chapter 6 Teams: The Intersection of People and Organisational Structures in Integrated Operations ...............91 Dominic Taylor, Wipro Oil and Gas Consulting, UK Chapter 7 Managing Team Leadership Challenges in Integrated Operations .....................................................103 Sjur Larsen, NTNU Social Research, Norway Chapter 8 Implementing iE: Learnings from a Drilling Contractor ....................................................................123 Martin Eike, Kongsberg Oil & Gas Technologies, Norway Chapter 9 Good IO-Design is More than IO-Rooms ...........................................................................................141 Berit Moltu, Norwegian University of Science and Technology, Norway Section 3 Planning, Concurrent Design, and Team Chapter 10 How to Implement Multidisciplinary Work Processes in the Oil Industry: A Statoil Case ................155 Tom Rosendahl, BI Norwegian Business School, Norway Asbjørn Egir, Astra North, Norway Erik Rolland, University of California, USA Chapter 11 Implementing Integrated Planning: Organizational Enablers and Capabilities ..................................171 Lone S. Ramstad, MARINTEK, Norway Kristin Halvorsen, MARINTEK, Norway Even A. Holte, MARINTEK, Norway Chapter 12 Promoting Onshore Planners’ Ability to Address Offshore Safety Hazards ......................................191 Ann Britt Skjerve, Institute for Energy Technology, Norway Grete Rindahl, Institute for Energy Technology, Norway Sizarta Sarshar, Institute for Energy Technology, Norway Alf Ove Braseth, Institute for Energy Technology, Norway Section 4 Cases Chapter 13 Baker Hughes IO and BEACON with a Focus on Downsizing Personnel Requirements at Rig-Site ..........................................................................................................................................213 Joanna Karin Grov Fraser, Baker Hughes, Norway Jan Ove Dagestad, Baker Hughes, Norway Barry L. Jones, Baker Hughes, Norway Chapter 14 Integrated Operations in Petrobras: A Bridge to Pre-Salt Achievements ...........................................225 Claudio Benevenuto de Campos Lima, Petrobras, Brazil José Adilson Tenório Gomes, Petrobras, Brazil Chapter 15 The Introduction of a Hand-Held Platform in an Engineering and Fabrication Company .................246 Irene Lorentzen Hepsø, Trondheim Business School, Norway Anders Rindal, Trondheim Business School, Norway Kristian Waldal, Trondheim Business School, Norway Section 5 Leadership and Learning Chapter 16 Adaptive Advisory Systems for Oil and Gas Operations ....................................................................262 Andreas Al-Kinani, myr:conn solutions, Austria Nihal Cakir, myr:conn solutions, Austria Theresa Baumgartner, myr:conn solutions, Austria Michael Stundner, myr:conn solutions, Austria Chapter 17 Integrated Operations from a Change Management Perspective .......................................................285 Tom Rosendahl, BI Norwegian Business School, Norway Asbjørn Egir, Astra North, Norway Lars Kristian Due-Sørensen, BI Norwegian Business School, Norway Hans Jørgen Ulsund, Vitari, Norway Chapter 18 Knowledge Markets and Collective Learning: Designing Hybrid Arenas for Learning Oriented Collaboration ........................................................................................................................304 Bernt Bremdal, Narvik University College, Norway Torbjørn Korsvold, SINTEF Technology and Society, Norway & Norwegian University of Science and Technology, Norway Chapter 19 The Terms of Interaction and Concurrent Learning in the Definition of Integrated Operations ........328 Trygve J. Steiro, Norwegian University of Science and Technology (NTNU), Institute for Production and Quality Engineering, Norway & SINTEF Technology and Society, Norway Glenn-Egil Torgersen, Norwegian Defence University College, Norway & Institute for Energy Technology, Norway Section 6 Resilience and HSE Chapter 20 IO, Coagency, Intractability, and Resilience ......................................................................................342 Erik Hollnagel, University of Southern Denmark, Denmark & Norwegian University of Science and Technology, Norway Chapter 21 IO Concepts as Contributing Factors to Major Accidents and Enablers for Resilience-Based Major Accident Prevention .................................................................................................................353 Eirik Albrechtsen, SINTEF Technology and Society, Norway Audun Weltzien, Norwegian University of Science and Technology, Norway Chapter 22 Introducing IO in a Drilling Company: Towards a Resilient Organization and Informed Decision- Making? ..............................................................................................................................................370 Grethe Osborg Ose, Norwegian University of Science and Technology (NTNU), Institute for Industrial Economics and Technology Management/Norwegian Marine Technology Institute (MARINTEK), Norway Trygve J. Steiro, Norwegian University of Science and Technology (NTNU), Institute for Production and Quality Engineering/SINTEF Technology and Society, Norway Compilation of References ...............................................................................................................389 About the Contributors ....................................................................................................................414 Index ...................................................................................................................................................424 Detailed Table of Contents Preface ................................................................................................................................................xvii Acknowledgment ............................................................................................................................xxviii Section 1 Introduction and Definitions Chapter 1 What is a Capability Platform Approach to Integrated Operations? An Introduction to Key Concepts ..........................................................................................................................................1 John Henderson, Boston University, USA Vidar Hepsø, Norwegian University of Science and Technology (NTNU), Norway Øyvind Mydland, Stepchange, Norway The concept of a capability platform can be used to argue how firms engage networked relationships to embed learning/performance into distinctive practices rather than focusing only on technology. In fact the capability language allows us to unpack the role of technology by emphasizing its interaction with people, process, and governance issues. The authors address the importance of a capability approach for Integrated Operations and how it can improve understanding of how people, process, technology, and governance issues are connected and managed to create scalable and sustainable practices. The chapter describes the development of capabilities as something that is happening within an ecology. Using ecology as a metaphor acknowledges that there is a limit to how far it is possible to go to understand organizations and the development of capabilities in the oil and gas industry as traditional hierarchies and stable markets. The new challenge that has emerged with integrated operations is the need for virtual, increasingly global, and network based models of work. The authors couple the ecology approach with a capability platform approach. Section 2 People, Process, Governance, and Technology Capabilities Chapter 2 How Integrated Operations has Influenced Offshore Leadership Practice ...........................................21 Kari Skarholt, SINTEF, Norway Lisbeth Hansson, SINTEF, Norway Gunnar M. Lamvik, SINTEF, Norway This chapter discusses how Integrated Operations (IO) has affected new ways of working and addresses leadership practice in particular. It investigates both the positive and negative effects of IO in terms of virtual leadership teams and local leadership offshore, and how this may affect safety on board. IO contributes to the onshore organization being more actively involved in problem-solving and decision- making in offshore operations compared to earlier. This way, it has become easier to reach a shared situational awareness concerning planning and prioritizing of operations on board. However, the authors find that the integration of sea and land has not been successful in achieving increased hands-on leader- ship offshore. To explore this issue, they discuss findings from different research projects studying IO and changes in work practices onshore and offshore at different installations/assets in a Norwegian oil and gas company. Chapter 3 Creating an IO Capable Organization: Mapping the Mindset ..............................................................40 Bjørn-Emil Madsen, SINTEF, Norway Lisbeth Hansson, SINTEF, Norway Jan Eivind Danielsen, Bouvet, Norway Integrated Operations (IO) is an organizational change and the mindset of the organization and the mindset of individuals affects this change process and vice versa. In this chapter, the authors discuss the changes introduced by IO, requirements to the change management process and a concept, they call IO Mindset. Change processes may be supported by use of tools and methods such as surveys and interviews. The chapter describes three different methods especially developed to assist IO change management processes, all including IO Mindset elements. The first one, TAM-IO, supports implementation of new ICT tools while CCP supports the change towards team based work forms. The third method, IO Mindset assess- ment is a newly developed tool, taking into consideration experience gained through implementation of IO and experience with other tools. Pilot testing of IO mindset assessment is described and discussed. This work is based on the “IO Mindset project” performed in the “IO centre” (Madsen et. al, 2011). Chapter 4 Collaborative Work Environments in Smart Oil Fields: The Organization Matters! ...........................59 Ewoud Guldemond, Atos Consulting, The Netherlands In the last decade, oil companies are increasingly viewing collaborative work environments as an im- portant component of their smart oil fields programs. Collaborative work environments (CWEs) have been implemented by several major oil companies, to support the use of technology in smart oil fields. The implementation of these collaborative work environments is not without problems. After major oil companies successfully implemented the hardware, tools and applications in CWEs, organizational design challenges remained unsolved. The biggest challenge is to change behavior of staff and to ef- fectively integrate people across disciplinary boundaries. This chapter emphasizes the importance of the organizational aspect of CWEs in smart oil fields. The objective of this chapter is to provide the upstream petroleum industry with guidelines for the organizational design of the collaborative work environments, in support of the operation of smart oil fields. In order to provide the organizational design guidelines, a PhD research was conducted at three different operating units of a major oil company. This research focused on the business processes, organizational structure, and competencies of staff in the CWEs.
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