Operational control and innovation are at opposite ends of the spectrum. That however does not mean they cannot be accomplished by the same organization. The innovative oil & gas producer must have both. One without the other is not worth pursuing. Conflict and contradiction will show up in the organization at some point and the need to deal with it becomes a governance issue. Producers using the Preliminary Specification will have the tools necessary to ensure that the Joint Operating Committee can discern the difference between innovative markets and tight operational control.
When the Joint Operating Committee conducts field operations, it establishes a temporary organization representing individuals from a variety of different sources. Other producers who are partners in the Joint Operating Committee, vendors, suppliers and service providers are some of the sources that make up these temporary organizations. Innovative oil & gas producers need operational control over these resources. In the Preliminary Specification we provide a number of tools to enable the Joint Operating Committee to maintain high levels of operational control over these temporary organizations. Please see the Operations Management module.
The first of these tools is Industrial Command & Control. An ability to impose a chain of command over these resources that span the producers, suppliers, vendors and service providers that are working in the temporary organization that’s been established. Next there is the Job Order which is a means to execute the plans and operations of this temporary organization during its operation. Nothing should be done without the appropriate Job Order issued by the recognized and designated authority listed in the Industrial Command & Control chain of command. There is the AFE in which the budget is established and maintained, as well as the lease. And the Work Order that enables producers' resources to be charged to the Joint Operating Committee. This ensures producers recover the costs of building and maintaining their distinct capabilities.
These are the tools at the disposal of the people responsible for the Joint Operating Committee's operation. They are designed to provide a sharp contrast to the freewheeling and innovative ways of the market. Both of these, innovative markets and tight operational control, are healthy for the innovative oil & gas industry. Provide the operational control required for a dynamic, innovative, accountable, and profitable oil & gas producer.