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Vol. 58 No. 12

December 2006

Reserves/Asset Management

Stage-Gate Project-Management Process in the Oil and Gas Industry

Management teams speculate on major capital projects to drive company performance. Capital committed to megaprojects has increased at a compounded average growth rate of more than 12% during the last decade, and this trend is expected to continue over the next decade. To manage the shareholder value that is at risk in these projects, most companies have invested heavily in a formal stage-gate project-management process (PMP). Yet the performance of major projects has not improved appreciably, and significant project failures - both technical and economic - continue to occur. Key organizational and technical shortcomings that diminish project performance are identified, and actions that management can take to gain significant competitive advantage are suggested.

View a Synopsis of SPE 102926

This article, written by Technology Editor Dennis Denney, contains highlights of paper SPE 102926, "The Good, the Bad, and the Ugly of the Stage-Gate Project-Management Process in the Oil and Gas Industry," by G.W. Walkup Jr., SPE, SDG, and J.R. Ligon, SPE, Consultant, prepared for the 2006 SPE Annual Technical Conference and Exhibition, San Antonio, Texas, 24-27 September. The paper has not been peer reviewed.

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