R&D Organization and Management in Oil and Gas Supermajors: Strategies, Processes, Governance and Current Trends

The development and competitiveness of the company in the turbulent era of changes in the petroleum industry will be based on the technologies, and supermajors, such as BP, Shell, Total, ExxonMobil and Chevron, which are the largest independent vertically integrated oil and gas companies, have to face such reality. In order to remain competitive, supermajors have to deal with technological complexities that are currently present on the market, as it is the only way to survive in the long run. Based on the recent history, supermajors most certainly have to watch their backs, as national oil companies with oilfield service companies have caught up the development of the majors. From the literature review, the research was conducted with an aim to analyze the current state of research and development in the oil and gas industry, specifically in the supermajors. Through documentary analysis and extensive literature review, the study has aimed to understand current trends, processes, governance and operational processes of research and development creation in mentioned companies. Results presented in the form of summaries of R&D activities and developments in each company, as well as in the form of flowcharts. The further discussion highlighted the development of ecosystems of innovation and shift to the open innovation from outsourcing practices. New roles of oilfield service companies, universities, government and venture capital firms in the process of innovation for supermajors were brought to light, as well as the increased importance of knowledge management. The research found that supermajors are in the process of business transformation, as they are shifting their strategies towards cleaner energy business, and innovation and technological development unlocks new capabilities in the business of supermajors. These companies have embraced the concept of open innovation as operational processes for innovations. Supermajors are ahead of the curve in areas of venture capitalism, while the company’s executives more commonly state that innovation is the core value of mentioned companies.