Modularization is an alternative way of performing engineering aimed to reduce the number of interfaces, the total installed cost (TIC) and overall schedule length of a project, while optimizing the return on investment (ROI) and allowing standardization for similar future projects.
Why is operational excellence (OE) increasingly being recognized as the path to world-class performance?
With job cuts numbering in the hundreds of thousands, the oil and gas industry has been hard-hit by the massive drop in prices. While no immediate end to the crisis is in sight, there are signs that prices—and hiring—may pick up again later this year.
Major suppliers are expanding their automation-related service capabilities from project and engineering services through services for operations and maintenance. This is happening partly in response to overall automation market conditions, but largely in response to evolving user challenges and requirements.
Although we have entered a new era of low energy prices, energy still represents one of the largest, but most easily managed, operating costs in the hydrocarbon industries.
It is no secret that capital costs of major projects have skyrocketed over the past decade. A July 2015 industry report noted that the average megaproject’s cost increase is 80% of its original value, with an average schedule slippage of 20 months.
When I started working in industry 50 years ago, it was management’s job to have a senior engineer watch over my work. Much of the quality of my analytical work and technical discipline were formed early in my career with help from these engineers.
Energy producers are under tremendous pressure to reduce operational costs and maximize efficiency throughout the value chain. This is easier said than done.
In the publishing business, a key editorial responsibility is ensuring the integrity of all articles that are chosen for publication. This column elaborates on additional ways that prospective authors can help ensure that readers trust what we print.