The oil and gas industry is characterized by a large amount of capital expenditures for upstream exploration and production. The industry's growth in capital expenditures far outstrips spending in other industries, therefore creating a necessity for oil and gas companies to monitor closely their portfolio of active projects, as well as the resource pool.
Project Location is one of the most common and useful project outline codes. Depending on the number of locations existent for projects, the deploying organization may choose to branch out one of the levels of the outline code. For example, under the level 1 "Continent," you may have more countries listed, and under each level 2 represented by a country, you may have more regions or cities/towns listed.
The outline code may have the following generic structure:
Projects by Type of Capital Expenditures
As the existing reserves are used, finding and developing new supplies becomes increasingly expensive, and the project costs associated with these activities rise. Understanding how the projects are distributed according to the type of capital expenditures helps an organization balance its portfolio. An example of a project outline code that groups projects by type of capital expenditures is as follows:
Projects and Resources by Area of Capital Expenditures
Another useful way of grouping projects and resources alike is the shared code Project and Resource by Area of Capital Expenditures. An example of the outline code is as follows:
In the same way that an organization groups its projects by location, it is important to understand the geographical distribution of the work force. Hence, a Resource Location outline code could share the values with the Project Outline code.
Most oil and gas organizations may organize their portfolio of projects by area of activity. Such a code could have the following structure:
For any organization, not just oil and gas, it is a good idea to have the portfolio of projects classified by their status, as in the following example:
Grouping projects in a portfolio by the phase they are in constitutes a great tool for managers to ensure that resources, human and financial, are synchronized and aligned with project schedules and goals. The following code structure presents a branched-out outline code. Note that branching out is not a requirement but an exemplification of how an organization may choose to structure its portfolio of projects.
Resources Skill Set
The other important code is the Skill Set for resource. The following values exemplify the register of value for the Resource Skill Set code. It is worth mentioning here that the deploying organization may choose to use the multivalue outline codes. In this case, if skill set values are used to match generic resources, keep in mind that only one skill set value will be used in matching resources.