An analysis of Pilot study of Innovative companies in the Oil & Gas Industry.

1. Submitted To :
Prof. Sudhir Yadav
Total Quality Management &
Innovation
Pilot Study of Innovative companies in Oil &
Gas Industry
Submitted By: Group 7
Darshit Paun 20131010
Nikhil Sajwal 20131026
Nilesh Kumar 20131027
Pinang Panjwani 20131032
Preeti Pal 20131034

2. BACKGROUND STUDY
• Since discovery of UK Continental Shelf the creation and growth of STBOR’s has been
promoted.
• The STBOR’s provide wide range of services and products in the O&G related sector.
• The industry provides more than 300,000 jobs in 2000 plus companies.
• This sector rose with need for innovation.
• According to STBOR’s, there is constant need to respond and adapt to the rapidly
changing environment and provide best quality services & products.
• This paper explores the relationship between innovation and quality.
• It also gives insights into the difficulties faced by STBOR’s owing to the innovation in
industry.

3. METHODOLOGY
• Data was collected from wide range of primary &
secondary sources.
• As many of the STBOR’s were headquartered in
Aberdeen, the research team was located there.

4. Stage 1:
Selecting a
Sample
Selection on basis of interviews
with oil & gas industry personnel.
6 companies selected for the
study.
Selected STBOR’s had less than
150 employees.
STBOR’s-The most successful and
innovative by the industry
experts.
Stage 2:
Knowing more
about the
companies
Depth Interviews of CEOs
A structured, open
questionnaire was prepared.
Issues like Company history,
Innovation, Quality, Contracting
environment, etc. covered
Quality related issues such as
involvement with suppliers and
customers discussed.
Quality standards, training &
quality costs were questioned.
Stage 3:
Studying the
Issues in Industry
To get better idea about the
operating environment &
understand the industry better
Operators, Contractors &
official bodies were also
questioned.
Semi structured interviews were
held with wide range of their
representatives.
Their responses were coded
and analyzed to get clear idea
of the key issues in the sector.
Stage 4:
Contextualizing
the Study
Various industry seminars and
conferences were attended.
Also reliable records were
studied.

5. ANALYZING
• The information was broadly grouped into 3 organization types:
• Operating Companies
• Contracting Companies
• Suppliers
o Providing basic items
o Providing specialized products and services- They need to invest heavily to
meet the rapidly changing technological needs. STBOR’s form a part of this
group.
• The STBOR’s mainly have to tackle problems of high investment,
customer retention, material management, skill management.

6. EFFECTS OF CHANGES
• Changes have affected at all levels in the industry.
• Streamlining supply within UKCS followed concept of lean
supply.
• Operators redefining their core business led to outsourcing
and increased business of contractors
• Situation became complex for STBORS, particularly in
maintaining communications.

7. INNOVATION CYCLE FOR
STBOR’S
New
Technologies
Perceived need
to Innovate
Opportunity to
Innovate
Incentive
for risk
taking
Investment in
innovation
Capacity
to
Innovate
MODEL FOR
INNOVATION AND
DEMAND
TECHNOLOGIES
New Technologies
Optimize Existing
Technologies
Field Development
New Regulations
New Operating
Contractors
Cost
Effectiveness

8. RESULTS OF THE STUDY
• The perceived links between Innovation & Quality are not identified by the
sample companies.
• It is observed that the companies are trying to bring the concept of Total
Quality in practice.
For Quality Management
• Organizations were asked directly about involvement in quality related issues
and activities