Capital projects across the oil and gas industry are facing intense scrutiny given the recent pressures on commodity prices and resultant reductions in annual spend. To combat this period of fiscal austerity, organizations large and small are actively deferring capital projects. For those critical projects that are underway or must be initiated, companies are exploring ways to reduce and control capital spend, achieve key delivery dates, and meet shareholder expectations in a compressed market.
Options commonly pursued include selecting vendors with a track record of success, hiring staff with requisite experience, and even narrowing project pursuits to “low-risk” options with high-yield potential. The challenge, however, is that the long-term value of these techniques can vary greatly and do not always lead to measurable improvements.
A proven method that can accelerate control is also one of the most cost-effective ways to account for risk and uncertainty of all types: integrate the project control disciplines—cost, schedule, and risk—and set standards in your project management processes that engender adoption across your portfolio.