Oil Price Volatility Affects Oilfield Service Company Organizational Management and Strategies

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

This research explores the market of Oil and Gas in terms of organisational management. By describing the market scenario and the concept of organisational management, the research identifies key areas where the organisational management has to face challenges. Furthermore, through questionnaire survey, which is conducted from the employees of Schlumberger Oilfield UK Pl, the research also identifies the problems that arise in the company with respect to organisational management.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of Research1

Research Aims and Objectives1

Focus of Research2

Case Study: Schlumberger Oilfield UK Plc2

CHAPTER 2: LITERATURE REVIEW3

Market Environment3

Security of Supply3

Economic Contribution3

Prices of Oil and Gas4

Oil Price Volatility4

Organizational Management5

Knowledge Management5

Structuring Workforce6

CHAPTER 3: METHODOLOGY7

Research Method7

Data Collection Procedure8

Literature Search8

Questionnaire Survey9

Quantitative Data Analysis9

Participants10

Limitations10

CHAPTER 4: RESULTS AND ANALYSIS12

Results12

CHAPTER 5: CONCLUSION17

REFERENCES19

CHAPTER 1: INTRODUCTION

Background of Research

It has been observed that there is an obvious and strong relationship between the oil price volatility and service company profitability which is very likely to operate in a push-pull type fashion, as the oil service market lags behind real time pricing volatility. The frequency of the oil pricing has increased in recent times due to multitude of factors; political, economic, reserves, etc. There are plenty of papers to review on this topic but this is not the primary dissertation focus. The research will explain the market environment and the factors that create organizational management issues for oilfield service companies. I have found no other studies that specifically look at this problem.

Research Aims and Objectives

The primary aim of the research will be to assess and evaluate the Schlumberger's organizational management methods and strategies that have been implemented in the last decade that have enabled it to sustain its superior financial performance. This aim will be achieved through following objectives:

To analyze the market environment

To identify the issues in Schlumberger Ltd company

To measure the impact that oil pricing volatility has had on Schlumberger Ltd company

To examine the factors that creates organizational management issues for Schlumberger Ltd Company

Focus of Research

The dissertation focus is about the oilfield services industry; where a highly competitive business environment exists in which companies compete fiercely within national, regional and international markets, and in the major product line categories of Drilling, Evaluation, Completion, Production and Intervention segments. Companies in these industry sectors, compete head to head with one another on the basis of service quality, pricing, reliability, responsiveness, and in some cases on the scale of their operations. As companies in this sector responds to oil price volatility, their organizational management structure, and related business strategies must adjust and anticipate the dynamic forces that ...