Friday Sep 13, 2013

Top Challenges, Implications, and Strategic Solutions for Energy and Utility Companies

The International Energy Agency (IEA) forecasts roughly a $38T capital outlay over the next 15 years for the energy sector. Global energy and utility demand isTop Challenges, Implications, and Strategic Solutions for Energy and Utility Companiesexpected to increase by over one-third in the period to 2035, while the primary energy supply mix shifts considerably to natural gas and unconventional sources. The ability for global power and process owners, operators, contractors, and E&C companies to meet demand will largely depend on their ability to overcome five pain points: a constrained capital market, erratic supply and demand, aging infrastructure, a heightened regulatory environment, and declining global skills.

Iain Graham, director of Process Manufacturing Strategy, Oracle Primavera, hosts a Webcast available On-Demand that spotlights three strategic drivers—operational excellence, financial discipline, and risk mitigation—which are key in driving success and helping to identify, select, execute, operate, and maintain assets in an increasingly complex world. During the Webcast, Iain discusses how financial discipline can help manage capital expenses and focus capital on areas that drive greater shareholder value. Through examples that Iain provides, you can learn how operational excellence enhances efficiency, optimizes resource pools, and reduces waste and inefficiencies. He also covers how improved awareness of cash flow and capital expenditures can help any power and process company better manage and react to uncertainty.

Read the full edition of Engineering News Record’s 2nd edition of Construction Connection to discover more successes and stories in the current and emerging environment in the engineering and construction industry. 

Visit the microsite to read highlight articles from the digital magazine.

Thursday Aug 29, 2013

Top Strategic Drivers to Success in an Unpredictable, Changing World

Whether they are in the power or process industry, owners, operators, and their E&C partners face extraordinary demands in the next 20 years. The International Energy Agency (IEA) 2012 World Market Report estimates that a cumulative investment of US$37 trillion is needed in the world’s energy supply system by 2035.1 Of that investment, US$19 trillion will need to go to oil and gas facilities and infrastructure and US$17 trillion to meet generation, transmission, and distribution needs with the remaining targeted at other energy solutions.

The $19 trillion in oil and gas investments is expected to span the globe from U.S. shale and Canadian oil sands to Iraq’s new oil fields and Brazil’s deepwater drilling. IEA also points out that the current energy renaissance in the U.S. will have significant implications for energy markets and trade. By 2030, the U.S. should be self-sufficient in net energy needs and a net oil exporter because of its increased production of oil, shale gas, and bioenergy as well as improved fuel transport efficiency. As a consequence of the U.S. shift, international oil owners will place more emphasis on Asian markets and strategic links to the Middle East. Utilities face unprecedented pressures, as well, given IEA’s estimating $17 trillion investment in power infrastructure. Global electricity demand is expected to increase over 70% by 2035, according to IEA, with over half that demand from China and India. As well, electric utilities in the U.S. are expected to invest at least $51.1 billion in transmission projects through 2023.2 The Edison Electric Institute (EEI) estimates that more than three-quarters of the $51.1 billion will be used to support the integration of renewable resources in an effort to meet growing demand, relieve congestion, improve reliability, and support new generation sources to power grids.

Whether owner, developer, utility, or E&C company, success in the current and emerging environment will most certainly depend on an organization’s cost control, operational efficiency, and risk mitigation—read the full article in Engineering News Record’s (ENR) 2nd edition of the Construction Connection digital magazine to discover why.

Visit the microsite to read highlight articles from the digital magazine.

Monday Nov 26, 2012

Live Webcast: Crystal Ball: Simulation of production uncertainty in unconventional reservoirs - November 29

In our webcast on 29 November, Oracle solution specialist Steve Hoye explains how you can effectively forecast EURs for unconventional reservoirs – supporting better investment decisions and reducing financial exposure and risk.

Attend the webcast to find out how your Oil & Gas industry can:

  • Use historical production data and data from other unconventional reservoirs to generate accurate production forecasts
  • Conduct Monte Carlo simulations in minutes to model likely declines in production rates over time
  • Accurately predict probable EURs to inform investment decisions
  • Assess the site against key criteria, such as Value at Risk and Likelihood of Economic Success.

Don't miss this opportunity to learn new techniques for mitigating financial risk across your unconventional reservoir projects. Register online today.

"Oracle Crystal Ball is involved in every major investment decision that we make for wells." Hugh Williamson, Risk and Cost Advisor, Drilling and Completions, BP

Thursday Nov 08, 2012

Video White Paper: Successful Maintenance Management Strategies for Oil & Gas Projects

Watch this short video white paper to learn how you can optimize your daily and routine maintenance with Oracle Primavera’s project portfolio management solution.

You can also Register and read the full white paper “Optimizing Daily and Routine Maintenance through Project Portfolio Management” to discover how to:

  • Capture best practices to successfully manage daily and routine maintenance projects.
  • Keep your equipment running longer and more efficiently.

Thursday Oct 25, 2012

Video White Paper: Mega-Project Management: Reducing Risk & Complexity across the Value Chain

Watch this short video white paper, to learn how Oracle Primavera can help you keep projects on track and protect your investments.

You can also download the full white paper “Mega-Project Management: Reducing Risk & Complexity Across the Value Chain” to gain more in depth information about strategies for collaborating and sharing information and data in a systematic way across the value chain. Download the white paper in order to learn how your company can get the expected payoff from your next mega project.

Register now to download the full complementary white paper, and discover how to:

  • Improve decision-making and accountability through enterprise-wide visibility, workflows, and collaboration
  • Reduce financial and performance risk

Friday Sep 07, 2012

How to Reap Anticipated ROI in Large-Scale Capital Projects

Only a small fraction of companies in asset-intensive industries reliably achieve expected ROI for major capital projects 90 percent of the time, according to a new industry study. In addition, 12 percent of companies see expected ROIs in less than half of their capital projects.

The problem: no matter how sophisticated and far-reaching the planning processes are, many organizations struggle to manage risks or reap the expected value from major capital investments.

The data is part of the larger survey of companies in oil and gas, mining and metals, chemicals, and utilities industries. The results appear in Prepare for the Unexpected: Investment Planning in Asset-Intensive Industries, a comprehensive new report sponsored by Oracle and developed by the Economist Intelligence Unit.

Analysts say the shortcomings in large-scale, long-duration capital-investments projects often stem from immature capital-planning processes. The poor decisions that result can lead to significant financial losses and disappointing project benefits, which are particularly harmful to organizations during economic downturns.

The report highlights three other important findings.

Teaming the right data and people doesn’t guarantee that ROI goals will be achieved. Despite involving cross-functional teams and looking at all the pertinent data, executives are still failing to identify risks and deliver bottom-line results on capital projects. Effective processes are the missing link.

Project-planning processes are weakest when it comes to risk management and predicting costs and ROI. Organizations participating in the study said they fail to achieve expected ROI because they regularly experience unexpected events that derail schedules and inflate budgets. But executives believe that using more-robust risk management and project planning strategies will help avoid delays, improve ROI, and more accurately predict the long-term cost of initiatives.

Planning for unexpected events is a key to success. External factors, such as changing market conditions and evolving government policies are difficult to forecast precisely, so organizations need to build flexibility into project plans to make it easier to adapt to the changes.

The report outlines a series of steps executives can take to address these shortcomings and improve their capital-planning processes. Read the full report or take the benchmarking survey and find out how your organization compares.

Monday Feb 06, 2012

Investment Intentions in the Oil & Gas Industry show significant improvements over the next 12 months

By Guest Blogger: Geoff Roberts, Oracle Primavera Industry Marketing Manager, Oil & Gas/Utilities

According to a recent survey conducted by the Economist Intelligence Unit (EIU) and commissioned by GL Noble Denton, “Big Spenders: the outlook for the oil and gas industry in 2012”  there has been significant improvement in a number of key areas around investment intentions over the next 12 months:

  • Industry optimism is high and rising up 6% on last year
  • Investment intentions are significantly stronger than last year, 63% of Executives plan to invest more or substantially more over the next 12 months.
  • Rising operating costs are seen as the key barrier to growth for the second year running, both employees and contractors
  • Skills are a growing concern with 34% of respondents identifying it as a top-three issue.

 With this in mind it is important that organizations look to manage their project portfolios throughout the Plan, Build and Operate phases, and to support this a solid PPM solution will help them to:

  • Ensure the correct investments are selected to provide the highest ROI
  • Ensure the most appropriate contractors are selected
  • Optimize the correct mix of contractor and employee staff
  • Forecast the skills requirements based on current/future projects

Monday Jan 02, 2012

How effective is your company at capital planning?

Asset-intensive industries are presented with many challenges when it comes to effectively managing the capital planning process. And failing to make good decisions when the stakes are high can lead to huge financial losses. Is your company making good investment decisions?

A recent survey by the Economist Intelligence Unit, sponsored by Oracle, found that:

  • Only one in ten companies in the utilities, oil & gas, chemicals and metals & mining industries consistently achieve the expected return on investment on capital projects
  • 47% of executives surveyed rate their organizations as "effective" at planning, prioritizing and selecting capital investment opportunities, and just 8% say they are "extremely effective"
  • Fewer than one in five organizations involve program managers in capital investment planning decision-making

With the cost of projects running into the millions, and even billions of dollars, the stakes have never been higher: timelines are long, investments are huge and lifecycles are even longer. Good decision-making in the planning stages can have a tremendous impact on the bottom line and mean the difference between the success and failure of a project.

How does your company compare? Take the EUI five-minute benchmarking survey to find out. See how your views of the capital planning process compare with those of more than 425 asset-intensive industry executives around the world.

Monday Dec 26, 2011

How portfolio management can reduce project portfolio costs and speed time to completion

In today’s increasingly complex and volatile business environment, companies in asset-intensive process industries need to achieve the expected return on their capital investments. Portfolio management can help companies make critical enterprise investment decisions by simplifying the investment selection process. In addition, portfolio management solutions can help organizations balance short and long-term planning, integrate planning groups across the organization, and align planning with execution, resulting in better decision-making that delivers enterprise value.

The Benefits:

  • Select, prioritize and align initiatives to achieve objectives
  • Understand the impact of changing or adding initiatives to portfolios
  • Track performance throughout the investment lifecycle process

Here is a 2 minute flash demo explaining how to improve capital investment portfolios with portfolio management. 

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