Planning and executing large, high risk, capital projects in frontier areas means that E&P organizations have had to retool their project delivery systems. While many energy firms have started the development of more robust project management processes to support these high capital expenditure (CAPEX) projects, implementation of this new way of doing business is meeting limited success.
Business leaders feel that they must effect change because of lack of predictability in delivering major E&P projects as evidenced by the above headline. This lack of predictability includes CAPEX overruns, late project completions, overly optimistic recoverable reserve estimates, etc.
By some estimates, 50% - 80% of enterprise level initiatives are deemed failures by organizations. How much stockholder’s equity has been liquidated attempting to implement a new way of doing business yet meeting only limited success, if any at all?