J.P. Van Driel’s scientific contributions

The major innovation barriers in onshore pipeline construction industry are discussed. Some of the barriers discussed are incentives, industry structures, regulations and non-differentiated services. A major innovation barrier is the high sunk costs in the existing equipment base, that forbids the manufacturer to introduce new technology, destroying the value of the existing one. The regulatory authorities also sometimes act as barrier to new methods because they exist to protect the safety of the construction crews, the public at large and the environment.

The importance of front end loading (FEL) which is considered as the best practice in the management of oil and gas field developments in the petroleun industry is discussed. Such reviews, if acted upon, can help to reduce variability of project execution outcomes. FEL reviews evaluate the completeness of technical definition and corresponding project uncertainty. A limitation of FEL benchmark review is that FEL scores do not directly measure the value created by accelerating or delaying sanction.

The working of traditional model of managing joint ventures in the oil and gas industry and its common failure modes are discussed. The process is designed to ensure that the project follows best practise throughout the development cycle. Relative to other industries the upstream oil and gas sector has tremendous exposure to working in joint ventures. It is stated that the traditional model can lead to unproductive partnerships and significant value loss.