Can there ever be peace between the drillers and the supply chain professionals? Fifteen key factors were identified as playing a significant role in differentiating the performance of drilling functions among the upstream organizations that were studied. Of these 15, capital discipline was identified as one of the most significant drivers of either performance excellence or performance dysfunction in an upstream organization. It can be like cats and dogs, fire and gasoline, the Hatfields and McCoys, Hannibal and the Romans - no matter the analogy, drillers and supply chain personnel are often at odds over who gets to make the decisions involving materials and services needed to drill and complete oil and gas wells. What do drillers and supply chains have to do with one another? For starters, drilling typically accounts for a major part of the upstream company's capital budget. And, as wells push to greater depths and involve increasingly challenging environments, the costs skyrocket. Supply chain personnel in most upstream companies are expected to reduce the company's overall costs of acquiring materials and services needed to keep the business running smoothly.
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