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Upstream

In: Business and Management

Submitted By njosueco
Words 3611
Pages 15
Applying Knowledge Management to Oil and Gas Industry Challenges
Released October 2002 By Paige Leavitt (with contributions from Cynthia Raybourn and Cindy Hubert) The oil and gas industry has taken advantage of knowledge management (KM) developments for more than a decade. In that time, the industry has experienced rapid changes and so many mergers that a oneworded petroleum company name now seems like an oddity. Throughout the rapid advance of technology, an extension of offshore drilling, numerous acquisitions, the growing reliance on foreign oil sources, and a focus on environmental issues, KM initiatives have played a part in making operations more efficient and effective. For instance, when oil and gas companies have been faced with new technology, outsourcing, new partnerships, and government regulation, their KM teams have provided support through technology and knowledge transfer, as well as asset management. When business issues involved capacity management, cost reduction, and the environment, KM played a part through forecasting/scheduling and process and technique innovation. And to improve speed and convenience, KM initiatives have expanded to address point-of-sale technology adoption and procedure effectiveness. Undeniably, KM has been proven to increase stock market valuation, assist in growth through acquisition, lead to better-developed products, and encourage intelligent leadership for tenacious early adopters. Chevron's (now ChevronTexaco's) definition of KM is apt for much of the industry: processes, tools, and behaviors that deliver the right content to the right people at the right time, and in the right context so they can make the best decisions, exploit business opportunities, and promote innovative ideas. Industry leaders, many of now merged companies, have embraced KM: • "We learned that we could use knowledge to drive learning and

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