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Project management process is defined as managing, planning and controlling the whole performance of the process. This will in the end help in the overall execution of the process. The inputs needed in the process include the documented need to act, the project plan templates, and resources for planning the whole project. This management process is quite delicate and, therefore, it needs time and idea in order to make it work out in the end; the main idea of doing the project management process is to come out with the plan that is effective and long lasting that would help in the whole management process. The project is an endeavor that is temporary although the whole process needs more than just definition of ideas but rather a strategy of implementing the ideas from start to the end. The goals in a project management are such that drive it, and in this case scenario, the goal is to come out with evaluation of an enhanced oil recovery system. It is evident that a project is usually time constrained and this is due to numerous deliverables. The main aim of the project is to bring value and change in the end of it taken as a whole. Projects generally as aforementioned one have a temporary nature as opposed to businesses that have a long life process. Therefore, the management of the project is quite different from that of a business as it can be seen in the following process.
The issue of project management process in the oil industry is the one that is quite complex in terms of ideas and resources that are needed to manage it. The project is usually conducted step by step in planning, monitoring and evaluation. The main aim of conducting the project management process in the oil and gas industry is to provide a feasibility, which would be used for a full scale implementation in the whole process. There is also the reservoir performance and operational procedure, which are also carried out to give the study some base of accuracy. The phase is also useful in conducting the engineering and economic analysis which will be used in deciding whether the full scale EOR will be carried out. Most institutions have adopted a stage-gate PMP to manage their projects. There are numerous differences in the process across the divide; however, there are also similarities in the process. This means that there is the line which acts as limitation or a joining point. In order to gain clearer understanding of this process, the best approach is to focus on the first three stages of the process. In order to enable the full scale implementation process, it is usually essential to manage and carry out a pilot project which would not only help to come out with a test of how the whole process would be but rather the full scale of how the process may be in the future. The pilot project usually contains the selection and design process which is termed as pilot areal. This means that here is the design of the injection facility, selection of an injection well and ultimately the monitoring well. Other area of concern is the sub-surface, surface and supporting function management. In the oil and gas industry, process management is usually a set of tools. This involves competencies that are utilized by individuals who are always aimed at enhancing the organization’s services and practices that it offers. Numerous pilot projects are characterized as matrix structures. This means that most of the team members are usually geology, geophysics and economic evaluation experts. The matrix being taken is through a consideration of the EOR potential which is usually assumed to be the backbone of future production. The EOR potential is usually considered under the following conditions:
- Most of the oil fields is produced under the primary stage
- Majority of the oil fields have passed the primary peak production
- Cumulative production is assumed to have reached about 80% primary recovery
- The remaining oil is still high in the fields
The nation usually needs to increase the production of oil in order to satisfy the nations craving for more oil for both the long and short term. Therefore, this means that the government is usually in charge of the process in many countries either directly or indirectly. As result of the needs that have been aforementioned, there is usually the urge by the government to come out with various processes, which means that the research that is aforementioned is usually conducted in numerous oil fields. The task that is aforementioned is usually performed by specialized project management team. The best organization to conduct the research is usually a matrix organization. A matrix organization is the one that is not only handled by the EOR department. Thus, the project manager is the only person that has 100% assignment on the EOR that is studied. The different experts that are abovementioned are also utilized when it comes to the study of the project. The matrix organization has numerous advantages. They are:
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A number of fields can be handled at the time meaning that there is diversity. The advantages and disadvantages can be studied in the figure below.
|Project managers authority||Little||Moderate||High|
|% personnel assigned fulltime to project||Less than 50%||70-90 (%)||100 (%)|
|Project managers role||Part time||Almost full time||Full time|
|Handled task||Numerous tasks at the same time||More than one task||Only one|
|Execution/ decision||Very slow||Slow||Fast|
There are also considerations that are put in place when it comes to the project management process in the oil fields. They are:
- The remaining oil
- Fracture and fault existence
- Oil viscosity
- Existence of aquifer
The primary roles of the project management team are also defined and they are usually aligned in the manner below.
The geophysics and reservoir team are usually responsible for the determination of the field that should be screened and the area that is usually checked for the water flooding. The considerations that they put forth are the reservoir geometry, lithology and the depth of the reservoir that is being analyzed. The production team on the other hand is charged with numerous responsibilities which include conducting the production lifting design and optimization. The other responsibility would be the need to undertake an accurate pilot performance data for the whole process. In addition, they are tasked with estimating the volume of production and the injection. The project and facility team is usually tasked with the process of designing a water injection plant which should fulfill the water requirements. Therefore, the project management in the oil and gas sector is being responsible for ensuring that the project that is undertaken supports the business objectives; it also supports the goals of the business and expectations which are put forth being clearly defined. The task consequently is to identify, schedule and complete the task that is assigned to the project implementers. Therefore, the aforementioned project would not only be beneficial, but would set a path in the research of the oil process taken as a whole. Thus, the paper gives a detailed overview of the whole process and the intricacies that are involved.
The main role of the project manager in the process that is aforementioned is to monitor and report the status of the project in bits so that it is easily understood by the people who are around or involved in the project. The other function is to provide deliverables of the pilot project. Oil and gas projects are usually such projects that require an extensive amount of capital to run. The projects spend millions of dollars in the capital projects trying to come out with the best out of them all. The recent increase in the oil prices has further augmented the whole process to become even more stressing one in terms of finances. The capital that the world puts on oil and gas is more than $100 billion in just a year period. This was in detail the year 2006.In the next decades the expenditure is bound to increase due to the nature that is usually there with oil and gas. Therefore, project management is an in depth analysis of a project from the point of identification of an exploration opportunity to the development of the whole project.
Project management is defined as one-time cautiously planned and arranged effort that is put in place to come out with a specific goal as the one mentioned earlier in the project. The main aim of the project in discussion is to come out with a clearly set evaluation of enhanced oil recovery which has also been discussed in the pages above. The management in this process would include the development of a project plan which will include a clear definition of the goals and objectives, which will lead to the specification of the tasks that are needed and the goals mode of achievement. The other focus is the budget and timeliness for the implementation of the whole process. Therefore, the five-phase project life cycle involves the following process.
- The initiation
Diagrammatically, the process is represented as in the figure below:
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Identification – Selection - Definition- Execution - Operation - The Life Cycle.
This is literary in line with the process that had been identified earlier in the discussion. The main function that is carried out in the identification and assessing process is coming out with a notion whether the opportunity that has been identified exists being a key function. The phase also involves the further assessment that is critical in the whole assessment procedure of the project. The next phase is coming out with a definition. The definition phase encompasses pretty much of the whole process in order to manage a procedure for the redeployment of the whole process. The definitive stage in the process involves the cost evaluation to come out with the best cost assessment for the whole project. What follows next that is the execution phase, which involves the activities that are required in order to complete the project that is being analyzed. Therefore the five phases are interrelated in such a manner that they have to be systematic in that one stage gives rise to the subsequent stages. The phases are divided in such a way that they have specific goals and in the end, the goals are terminated with a decision in one way or the other. The end of one process determines whether the next phase will progress or the current phase will have to be redone. So, the whole process is much more than just research. The failure of a stage may mean that the whole project needs to be dropped on the whole. The final phase however, has no terminal phase and, therefore, it is an exception in the failure of the whole process but it is rather a failure of itself. The shareholders and management are a key factor in the creation and implementation of the five stages of assessment. Thus, the process of assessment requires a team of specialists who are assigned the different phases in each stage to come out with a clearer objective, which is the creation of better output.
A gatekeeper is usually assigned to determine whether a phase in the project has been achieved or given the correct requirements. A gate keeper is usually a senior manager in the project. The power that he or she holds is such a one that he or she is the sole individual who can determine whether the process goes to the next phase or doesn’t. Therefore, when a decision is reached through the stages, it will determine fully whether it goes to the next stage and also whether it is the right investment decision at that period or not. Therefore, the procedure is an integral part to a PMP. The process according to researchers provides a path of good decision making among the key players in each sector to come out with a strong overall assessment. Effective communication is an important part of a decision making process since it intertwines the ideas of several individuals that are greatly put together to come out with the overall sound decision making process.
The phases are further discussed in the process below.
Phase 1(Identification)_ this is the process of identifying the whole business process and coming out with a clear picture as to whether it is the right decision for investment or rather if it is a wrong one.
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Phase 2(selection) _this is the process of identifying alternatives to the whole process. This means that the project is analyzed for an option and then the option is also analyzed to see if it is worth it.
Phase 3(Definition and development)_ in this procedure, a proffered alternative and scope for the project is defined and this means that the specifics are further given so that the individuals involved in the project can come out with sponsors when they are given the whole budget.
Phase 4(execution) _This stage is rather much as the backbone of the whole process and a definition of the variables. This process helps to produce an operating asset that meets the scope, cost and schedule being planned.
Phase 5 (Operation and evaluation) _this process involves the evaluation of performance of the asset in details in order to come out with maximum benefit to the shareholders of the project.
Diagrammatically, the whole process can be defined by the table below.
Identification and assessment of opportunities
Generation and selection of alternatives
Development of a preferred alternative
Operation and evaluation
|Determination of the projects feasibility and alignment to the strategy laid down by the business||Selection of a preferred project development option||Finalization of the whole project scope, costs and schedule to lure in funding||Production of an operating asset that is consistent with the scope and costs laid prior||Evaluation of the asset to ensure that the performance is maximum and gives the projected return to the shareholders|
Gate 1 Gate 2 Gate 3 Gate 4 Gate5 PFD P& ID AFE
3.2.2Project Management of Re-development Projects
Companies that have already had an infilling well drilling systems are really reluctant to incorporate the EOR technique due to the work culture that is already in place. However, there are other reasons which include the advancements in technology, which means that there is the likelihood of accurate prediction of the sites where the upswept mines are located. The other reason is that the oil companies are quite efficient when it comes to calculating the whole profit and loss when it comes to oil drilling unlike when it comes to EOR which is a complex process in all matters. However, it is also quite essential to determine if the oil companies that are traditional in all aspects are losing the opportunities of maximizing the profits that they are to receive. The other point to consider is whether the way that they evaluate the risks has limitations. In order to ascertain this, it is imperative to create case scenarios that are coherent with the matters in discussion and that means coming out with calculations to determine the recovery in addition that the EOR may bring into the whole process. However, when the literature is discussed, it is found out that the main challenge that the EOR process faces is the reviling oil prices. In more literal perspective, this means that the main challenge is to come out with a clear setting that would minimize the costs of operation when the oil prices are low. The best way to analyze this literature is to come out with a clear and further progressive approach which involves the optimization methodology. Therefore, the process involves not one but a stream of processes that are quite important in the whole process making. Due to the fact that the EOR process involves the water flooding process, it is additionally imperative to analyze the infilling well drilling vs. water flooding side by side in order to come out with a clear justification of the whole process. This would mean that there would be a clear knowledge on project management of the redevelopment process. In this case scenario, a redevelopment process is the one which involves the ideologies of already established oil mine which uses the traditional system with that of the EOR technology. Therefore, this gives the process its whole meaning. The infilling drilling system involves more than just a process since it always aims at increasing the number of oil wells in an area. The wells are spaced in small distances to ensure that they are not deterrents to the digging of more wells. On the other hand, when modifications are made to the oil mines, it will reduce the density that they are traditionally known for forming and, in return, it will improve the efficiency. Infilling drilling is quite beneficial since it improves the efficiency due to the reduced costs when it comes to the fluid displacement process. The other point of consideration is the polymer flood process. This process involves the decreasing of the mobility of the water injected in the water. The main chemistry is that the viscosity of oil in water is usually low. Thus, the viscosity of the injected water is usually less than that of pure water. This process gives the whole process its meaning. Therefore, mathematically, the mobility ratio will be summed up as:
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M=%u0264ing /%u0264ed (%u0264ing this is the mobility that displaces the fluid, as example, it is water)
(%u0264ed this is the mobility that is displaced by the fluid)
The calculations are further enhanced by the eclipse 100 to come out with a more decisive figure. This then means that the EOR process is further enabled and used in a more decisive process which involves a base-case performance which involves the traditional water flooding process. This helps to come out with a clearer picture on the sensitivity of the EOR process which is vital in theproject management of re-development projects. The main objective in the system is to come out with a clearer depiction of the process and this would involve the whole process which would mean that there is the EOR project optimization. Therefore, when analyzed in detail, the field of oil efficiency is usually made better through the EOR process. This is tabulated over time to come out with the results. The polymer is also analyzed in terms of years and the benefits of water flooding are also compared to the whole process. This data can be summed in the figure below.
The development of a mature field is a subject of discussion that is always contentious and will always be encouraging in terms of incoming issues. What this means is that there will always be an analysis of the field and coming out with a generally accepted answer is quite difficult as there isn’t any need to come out with the clear depiction. Thus, it adds up that the analysis can be divided into two broad groups that are the well engineering and the reservoir engineering. After a certain period of exploration in an oil field, they are then termed as mature fields. This means that they are fields that have reached the peak of their production and, therefore, they have come to their economic limit. In order to assess the redevelopment project, it is imperative to assess the life of an oil field. The life of an oil field is represented in the figure below.