Project management is quite different from engineering. An engineer is normally responsible only for his or her own work product and generally deals with the reactions of inanimate substances that follow the laws of physics. A project manager is required to be responsible for the quantity, quality, and timeliness of work products that generally do not follow any physical laws. To succeed as a project manager, the most important thing is to ensure good communication within the project team. Communication can be accomplished in many forms (verbal, written, formal, and informal), but one size does not fit all, and the project manager is responsible for communications concerning the project and its execution.
The implementation of a transportation management system has been evolving into a core business practice in the oil and gas industry. This management approach is assisting in the coordinating the efforts of people to accomplish goals and objectives using resources already available in an effective and efficient way. Management's purpose is to coordinate the efforts of people so they can accomplish goals and objectives using available resources efficiently and effectively. A management system comprises of planning, organizing, staffing, leading or directing, and controlling an organization to accomplish set goals. Management sizes can range from one person in a small business to thousands of managers in international organizations.
Figure 1.1--Ability to influence project costs vs. project life cycle. Before we discuss how to do a project, we will define some of the basic terms used in that discussion. Immediately after notification of your appointment as project manager, you should quickly determine whether your company has any previous experience in this type of project. If so, you should review the project files and determine whether that effort was considered a success or failure and the reasons for that assessment. Remember, those who ignore history are bound to repeat it. The lease agreement defines your relationship with the leaseholder; the JOA defines your relationships with other working-interest owners for whom you are the operator. Both documents may have sections that are different from your company's normal operational procedures and may affect the project accounting, procurement, facility, and pipeline options. It is important that you understand these documents and any reference in them that would affect the execution or final configuration of your project.
The project team is now fully assembled, and it is time to start the physical project work with all members becoming involved in the engineering, purchasing, and contracting effort. These accomplishments must be measured and reported to determine the efficiency of the work and the true financial impact of the project. Real progress on a job is determined by a counting of such things as the number of documents delivered vs. the total number or the number of welds made vs. the total number required. Progress is not measured by comparing the money spent vs. the money allocated. The requirement for real progress monitoring increases as the job grows in size and complexity.
Invisible Lost Time (ILT) related to routine rig drilling operations is the difference between actual operational duration and a best practice target. It is invisible as it does not appear on any conventional morning reports. The measurement of Invisible Lost Time starts by analyzing each individual key performance indicator (KPI) that can be produced by a particular crew (drilling crew, casing crew, etc.) or by a machine automated operation or a combination of both.
Obtaining an internal project financing with an authorization for expenditure (AFE) will consist of doing a project cost estimate and schedule for the total internal and external project expenditures and presenting it to management and partners for approval of these future expenditures. Depending on the data available to you from previous similar projects and your skill and confidence levels, you can do this estimate yourself or ask your chosen engineering contractor to help. You should review your company's standard forms and conditions for AFEs. You should also review the joint operating agreement (JOA) on this subject because its requirements may be different from your company's requirements. If you choose to do the AFE estimate yourself, you should consult the equipment and service vendors in your area that will eventually be supplying the project equipment and services for help in both these areas.
Biological monitoring is the continued examination of biological specimens taken from a specific environment to identify any human-caused issues. In the oil and gas industry, biological monitoring programs provide important data for decision making and to ensure the protection of resources and ecosystems. To evaluate ecosystems, flora, fauna, arthropods, birds, small mammals, and other species are examined within specific sampling zones to determine the effect on their respective habitats and density within those habitats. Tissue samples are analyzed to determine the effect of chemicals on specific species. Air, water, and soil samples are tested for signs of environmental toxicity. Based on findings from data collected, a plan is then created to prevent potential or further damage to the zones affected by the drilling area.