Application of Process-oriented Management in Oil & Gas Industry

Nowadays oil & gas enterprises are influenced by the price of oil, which is volatile and depends on many factors. That is why management of the company have focused not only on internal processes, but also on external ones in the organisation in order to improve their business performance. The distinctive feature of petroleum businesses is the scope of performance. When the crude oil or gas are extracted, they should undergo many phases in supply chains until products reach a final customer. The paper covers rather business processes but not manufacturing ones. The challenge arising in oil & gas is how to combine quantity, quality and to charge fair price for a client. The main approach to improve business performance is business process management, which plays a crucial role in delivering various types of resources and information sharing from one company to another. It requires an analysis, optimisatisation and control via information systems. However, digital technology application does not only solve the core problem of process orientation in traditional management, especially in functional organizational structures. The troubles with process orientation management are expected to be solved to a greater extent by correct integration of business processes and competent personnel. The research’s goal is to analyse business process management in oil & gas borrowed from other scientific works. Additionally, issues of oil & gas industry and the application of business process management that resolves petroleum problems are discussed. Finally, case studies support the theoretical material. The author also discovers patterns of process management in petroleum industry, explains his vison of future oil & gas organisations, gives recommendations for the companies and summarises the scientific work.