Tight Oil Production Technology Effects on the U.S. Petroleum Industry's Vertical Integration

Tight Oil Production Technology Effects on the U.S. Petroleum Industry's Vertical Integration
Author: William Dalton Jackson
Publisher:
Total Pages:
Release: 2020
Genre: Business logistics
ISBN:

The introduction of tight-oil technologies into the U.S. petroleum industry’s supply chain has triggered a revolution with wide commercial, economic, and geopolitical impacts. While these upstream technologies have increased proven reserves, reduced the unsuccessful well incident rate, and increased individual well productivity, they have also increased per well costs. Concurrently, the U.S. petroleum industry expanded and modernized its downstream refining sector with a different suite of technologies, including “digital oilfield” technologies and advanced refinery processes. Moreover, while these innovations were being introduced, the U.S. petroleum industry's long-standing vertically integrated structure has undergone a steady disintegration, in which the dominance of large integrated companies has been weakened. This study explores whether – and to what extent -- these two industrial developments may be related, and, if so, what is the nature of this relationship? The introduction of tight-oil technology in U.S. crude oil production provides an opportunity to study a new technology’s measurable deployment into the upstream portion of a supply chain and its potential influence on an industry’s industrial organization. Tight-oil deployments were largely unanticipated, and any biases introduced by the reciprocal relationships between organizational changes and technological progress are likely minimized. Due to the nature of these innovations, the production from wells utilizing the tight-oil technologies can be segregated from that of other wells using more conventional technologies. Because this study measures directly the adoption and implementation of innovative technologies on an industry’s discrete operations, it can assess more accurately the impact of technological innovation on an industry’s evolving organizational structure. As a result, this study seeks to provide insight into the essential nature of a technological innovation and how its insertion into key locations in an industry’s supply chain can influence directly and substantially the organizational structure of the linked industries that compose it.

The Changing World of Oil: An Analysis of Corporate Change and Adaptation

The Changing World of Oil: An Analysis of Corporate Change and Adaptation
Author: Jerome Davis
Publisher: Taylor & Francis
Total Pages: 214
Release: 2016-12-14
Genre: Business & Economics
ISBN: 1351893092

This book examines broad questions of industrial change in order to explain developments in the oil industry. In contrast to most other work on this industry, firms are considered to be the dependent variables rather than the future production and demand for oil and gas. An analysis of the industry is made by examining how corporations change their operating environments and are themselves changed by their environments. Particular attention is paid to 'mega-mergers' and to industrial downsizing and outsourcing. The significance of such restructuring for the societies the companies serve is also considered and comprehensive use is made of recent theories of the firm. It shows how such theories can be used to analyze a key world-wide industry. The distinctive approach of this book will help extend readers' understanding of the oil industry beyond the more conventional studies.