{"product_id":"the-final-frontier-isbn-9781119376545","title":"The Final Frontier","description":"\u003cb\u003eThe energy industry's accelerated evolution requires visionary change\u003c\/b\u003e \u003cp\u003e\u003ci\u003eThe Final Frontier\u003c\/i\u003e parses the evolution of the oil and gas sector to map out a plan for going forward. The global energy industry is huge, and it is in disarray; between low oil and gas prices, climate change, rising development costs, and ever-mounting regulations, the need for change has been made crystal clear—but planning is much easier than implementation, and stasis is not progress. This book shows how redesigning internal operating models can bring about the necessary change in the implementation of upstream capabilities-driven strategies. From integrated, national, major, and independent oil companies, to the service companies in the upstream supply chain, there isn't an enterprise in the sector that cannot benefit from reduced costs and increased efficiency. Knowing that change is necessary is not enough—this book shows you \u003ci\u003ewhat\u003c\/i\u003e to change, and \u003ci\u003ehow\u003c\/i\u003e to change it to get off the treadmill and start moving forward. \u003c\/p\u003e\u003cp\u003eWith expert guidance through each redesign element, this insightful guide provides more than simply ideas: it provides real, practical guidance on transforming operations to keep pace with the changes and create lasting advantage. \u003c\/p\u003e\u003cul\u003e \u003cli\u003eIdentify the most relevant organizational capabilities for your resource portfolio, as well as the changes that can translate into savings and efficiency\u003c\/li\u003e \u003cli\u003eBuild a workable plan for real-world implementation\u003c\/li\u003e \u003cli\u003eRedesign the operating model most suited to the needs of your business on an organization-wide basis\u003c\/li\u003e \u003cli\u003eLearn what to do differently and \u003ci\u003ehow\u003c\/i\u003e to do it differently\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe energy industry has made great strides: our understanding of the global resource base, the nature of ownership and principal stakeholders, new technologies for resource development, and our economics and business models have all undergone a tremendous revolution, but now the more difficult—and more valuable—task begins. \u003ci\u003eThe Final Frontier\u003c\/i\u003e helps you navigate the future and implement the changes necessary to avoid getting left behind. \u003c\/p\u003e\u003cp\u003eAcknowledgments ix\u003c\/p\u003e \u003cp\u003eAbstract x\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Vital Industry 2\u003c\/p\u003e \u003cp\u003eWhat Now? 3\u003c\/p\u003e \u003cp\u003eIndustry Evolution 6\u003c\/p\u003e \u003cp\u003eTen Reasons to Update Your Operating Model 9\u003c\/p\u003e \u003cp\u003eE\u0026amp;P Needs a New Agenda 19\u003c\/p\u003e \u003cp\u003eNotes 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The New Agenda 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUpstream Cost Transformation 24\u003c\/p\u003e \u003cp\u003e“Cut Costs and Grow Stronger” 30\u003c\/p\u003e \u003cp\u003eE\u0026amp;P Capabilities 34\u003c\/p\u003e \u003cp\u003eResource-Based Key Capabilities 45\u003c\/p\u003e \u003cp\u003eNotes 49\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 E\u0026amp;P Operating Model Redesign 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInternal Operating Model 55\u003c\/p\u003e \u003cp\u003eBusiness Delineation and Performance Measurement 56\u003c\/p\u003e \u003cp\u003eOrganization Structure, Capabilities, and Workflows 66\u003c\/p\u003e \u003cp\u003eOperations Management Processes 74\u003c\/p\u003e \u003cp\u003eDelegation of Decision Rights 75\u003c\/p\u003e \u003cp\u003eInformal Social Norms and Corporate Culture 77\u003c\/p\u003e \u003cp\u003eImplications of Industry Evolution 80\u003c\/p\u003e \u003cp\u003eBusiness Model Considerations 83\u003c\/p\u003e \u003cp\u003eNotes 85\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 PMI and Other Event-Driven Redesigns 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Search for a Perfect Ownership Model 89\u003c\/p\u003e \u003cp\u003ePreparing to Go Public 91\u003c\/p\u003e \u003cp\u003eKey Success Factors 92\u003c\/p\u003e \u003cp\u003eEvent-Driven Redesign 94\u003c\/p\u003e \u003cp\u003eNote 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 National Oil Company Considerations 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNational Oil Company Context 98\u003c\/p\u003e \u003cp\u003eSovereign and National Oil Company Strategies 103\u003c\/p\u003e \u003cp\u003eBusiness Model Implications 109\u003c\/p\u003e \u003cp\u003eNotes 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Collaborative Operating Models 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWho Uses Joint Ventures? 118\u003c\/p\u003e \u003cp\u003eJoint Venture Strategic Intent 122\u003c\/p\u003e \u003cp\u003eJoint Venture Value and Valuation 124\u003c\/p\u003e \u003cp\u003eDeal Structure 127\u003c\/p\u003e \u003cp\u003eJoint Ventures in Practice—The “How” 132\u003c\/p\u003e \u003cp\u003eNotes 141\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Financial Implications 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Strategy and Policy 145\u003c\/p\u003e \u003cp\u003eHedging and Trading 155\u003c\/p\u003e \u003cp\u003eNotes 168\u003c\/p\u003e \u003cp\u003e\u003cb\u003eGlossary of Terms 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOther Useful Links 171\u003c\/p\u003e \u003cp\u003eWorks Cited 172\u003c\/p\u003e \u003cp\u003eAbout the Author 178\u003c\/p\u003e \u003cp\u003eIndex 179\u003c\/p\u003e \u003cp\u003e“This book makes the case for change and outlines the key operating model compo­nents for a winning capabilities-driven strategy in today’s difficult environment. The opportunity to both lower cost and increase productivity makes this essential reading for executives across the O\u0026amp;G industry.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e—ERIC SPIEGEL, \u003c\/b\u003eformer President and CEO of Siemens USA, author of \u003ci\u003eEnergy Shift: Game Changing Options for Fueling the Future\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e “\u003ci\u003eThe Final Frontier \u003c\/i\u003edelivers a masterful analysis of the current oil and gas industry and how it can evolve toward the future. Justin’s insights, which cover everything from discovery challenges to M\u0026amp;A and hedging, are a must for all industry professionals who wish to see beyond the technical side of the business.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e—FABIAN VERA, \u003c\/b\u003eReservoir Engineer, CDEUS\u003c\/p\u003e \u003cp\u003e“This is a well-written, easily read, and well organized book. It is an excellent source for E\u0026amp;P companies, including NOCs, IOCs, and service companies, for planning, designing, and implementing low-cost and efficient operating models. The book presents an inclusive coverage of various business and operating models practiced in the oil and gas industry. This book is recommended for CEOs, executives, business leaders, professionals, and practitioners in the industry.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e—Dr. SAUD M. AL-FATTAH, \u003c\/b\u003eConsultant, Saudi Aramco\u003c\/p\u003e \u003cp\u003e“Mr. Pettit captures the essence of why E\u0026amp;P companies need to push forward with a new model. He concisely captures and underpins the historic practices that have led the industry to a point where a new path must be taken. His work has helped to reframe the operating model that I use. This book is a must for all executives in the oil industry.”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e—MICHAEL G. MUIRHEAD, \u003c\/b\u003eChairman and Chief Executive Officer, Ezra Energy Ltd.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eJUSTIN PETTIT\u003c\/b\u003e is an advisor to the oil and gas industry. He entered the industry in 1992 as Senior Business Planner with Norcen Energy Resources and went on to a successful career on Wall Street, including Partner at Stern Stewart \u0026amp; Company, Group Head of Strategic Advisory for UBS Investment Bank, and Lead Partner in the energy and chemicals practice of Booz \u0026amp; Company. He also authored \u003ci\u003eStrategic Corporate Finance: Applications in Valuation \u0026amp; Capital Structure\u003c\/i\u003e (Wiley) and \u003ci\u003eMerge Ahead: Mastering the Five Enduring Trends of Artful M\u0026amp;A\u003c\/i\u003e. Mr. Pettit is a member of the Society of Petroleum Engineers.   \u003c\/p\u003e\u003cp\u003eSweeping evolutionary change and a range of powerful disruptive forces have left the energy industry in a state of disarray. No doubt the industry has attempted to address those challenges on several fronts, but always on a piecemeal basis. As a result, cash flows continue to fall short and the sense remains that the industry has not fully adapted. \u003c\/p\u003e\u003cp\u003eIn \u003ci\u003eThe Final Frontier,\u003c\/i\u003e author Justin Pettit argues that although companies have been focused on cost and productivity since before the collapse in oil prices, beyond incremental accommodations to change, scant attention has been given to what should have been a critical concern: their internal enterprise operating models. \u003c\/p\u003e\u003cp\u003ePettit provides an overview of the ten key challenges facing the oil and gas industry, including weak oil and gas prices, the \"ripple effect\" of unconventional energy sources, and mounting social license and environmental costs. And he explains why the pressures they exert in the aggregate cry out for nothing less than a radical new approach to how business is conducted from the inside out. \u003c\/p\u003e\u003cp\u003eHe then explores the redesign elements of a new internal operating model for IOCs, majors and independents, NOCs, and services companies in the upstream supply chain. He offers examples of how they can be successfully internalized and leveraged with real-world case studies of both successes and failures. Operating model redesign offers a way to cut costs and grow stronger by investing in companies' most important capabilities and leveraging the capabilities of others. It is an opportunity to tap into the creativity and entrepreneurial spirit of the talent pool and to empower employees to drive enterprise improvement. In \u003ci\u003eThe Final Frontier,\u003c\/i\u003e Justin Pettit doesn't merely make a compelling case for a radical redesign of outmoded internal operating models, he lays out a blueprint for how to make that change.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990228386021,"sku":"NP9781119376545","price":50.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119376545.jpg?v=1761786991","url":"https:\/\/k12savings.com\/products\/the-final-frontier-isbn-9781119376545","provider":"K12savings","version":"1.0","type":"link"}