In the oil and gas industry, managing capital projects, in particular
large capital projects, in a global environment is becoming
increasingly complex. This is especially the case as large reserves are
being depleted and the industry copes by drilling multiple smaller
wells to compensate.
Oil and gas companies need to make strategic decisions about which
projects should be developed first to ensure their company's best
performance. Then there are decisions about equipment resources:
When is the best time to reserve a rig? Should the decision be based on
getting the best rate even if the rig will not be needed at that exact
moment? Or should a firm wait until the exact date for a drilling
project is known and risk the equipment not being available, or the
threat of higher rental rates? How does an equipment shortage impact
planned revenues? Do key decision makers have the ability to review
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this information and prioritize projects based on equipment resources?