Implementing iE: Learnings from a Drilling Contractor

Implementing iE: Learnings from a Drilling Contractor

Martin Eike (Kongsberg Oil & Gas Technologies, Norway)
DOI: 10.4018/978-1-4666-2002-5.ch008
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Abstract

On the Norwegian continental shelf, utilization of iE has been regarded as a vital measure for avoiding a rapid decline in production. Implementation has however proven to be challenging, and an unharvested potential still exist. Taking a capability approach to such implementation may help attain this remaining potential. Doing so requires a good understanding of what factors secure a successful and sustainable iE-implementation. Here, a case study of how a drilling contractor has adopted iE is used as basis for identifying such factors. An analytical framework rooted in the tradition of innovation theory is used for exploring the empirical material. The findings are further used as basis for presenting a set of recommendations that, if utilized, could help managers and change agents in their efforts of successfully implementing iE-capabilities within their organization.
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Introduction

Despite many success stories, there is still a significant potential for harvesting additional value from intelligent energy (iE) within the oil and gas industry. As suggested by the editors of this book, utilizing a capability approach could help companies within the industry in this endeavour. Doing so does however require an understanding of what factors that enables a successful and sustainable implementation of such an approach, and how one can utilize these in a change management process.

This chapter aims to explore some of these factors. My starting point is the field of organizational innovation - more specific, theory describing how organizations build necessary capacity for carrying out successful innovation processes. I utilize this framework for a detailed review of how a major Norwegian drilling contractor has implemented the use of iE. The implementation was largely successful, and it proved decisive for the company to have a sufficient capacity for innovation as a basis for their efforts (Eike 2009). The learning’s drawn from this can be used for enhancing our understanding of factors necessary for implementing sustainable iE-capabilities, both within- and in the intersection between different companies. By the end of this chapter my goal is to have shed light on some vital factors for conducting a successful and sustainable implementation of iE.

My ambition is not to present an exhaustive list of all factors that may have relevance, but to point to some, as identified in the empirical review, and describe how these could be utilized in the form of a set of recommendations to iE stakeholders.

I begin this chapter however by reviewing the “iE-history” on the Norwegian continental shelf, including a short introduction to the capability approach, which, in my opinion, emerged as a result of the difficulties many experienced when attempting to implement the concept. I then briefly review some critical points from the tradition of organizational innovation, before describing the “capacity for innovation”-framework. This is then put to use on the case study of how a drilling contractor has built the capacity necessary for introducing iE in its organization. Following this I return to the capability approach to iE-implementation and examine how my findings can help enhance our understanding of how to best aid the implementation of this. I end with suggesting areas relevant for further studies and some closing remarks.

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