Problem/Need Statement/Goal

Defining the Path Forward: Problem/Need Statements and Goals in Oil & Gas

In the complex world of Oil & Gas, successful projects hinge on clearly defined objectives. A crucial element in this process is the meticulous articulation of a Problem/Need Statement, which lays the groundwork for a solution, and the establishment of a clear Goal, which guides the project towards its ultimate aim.

1. Problem/Need Statement: Illuminating the Challenge

The Problem/Need Statement acts as the project's bedrock, outlining the specific issue or need that demands attention. It's more than just a description; it's a compelling narrative that showcases the urgency and impact of the problem.

Key elements of a strong Problem/Need Statement in Oil & Gas:

• Specificity: Avoid broad generalizations. Clearly identify the precise problem or need. For instance, instead of saying "Improving production," pinpoint the specific area, "Increase production in well X by 10%."
• Measurability: Quantify the problem whenever possible. This provides a tangible benchmark for evaluating potential solutions.
• Impact: Explain the consequences of the problem if left unaddressed. This underscores the project's relevance and importance.
• Target audience: Tailor the statement to the specific stakeholders involved.

Example:

Problem: "The aging infrastructure at the XYZ oilfield is experiencing frequent breakdowns, resulting in a 15% reduction in production and an estimated $5 million in lost revenue annually."

This statement is specific, measurable, and clearly articulates the impact of the problem.

2. Documentation: Providing a Clear Picture

Documenting the Problem/Need Statement is essential for several reasons:

• Clarity and Consistency: It ensures everyone involved understands the project's core objective.
• Decision-Making: It provides a framework for evaluating potential solutions and making informed decisions.
• Project Management: It acts as a guiding principle throughout the project lifecycle.

3. Goal: Defining the Destination

The Goal defines the desired outcome of the project. It's the ultimate destination that the solution aims to achieve.

A well-defined Goal should be:

• Specific: Clearly state the desired outcome.
• Measurable: Define quantifiable metrics to gauge success.
• Achievable: Set realistic targets within the project's scope.
• Relevant: Align with the project's overall objectives and business strategy.
• Time-bound: Establish a deadline for achieving the goal.

Example:

Goal: "Increase production at the XYZ oilfield by 10% within the next 12 months by implementing a comprehensive infrastructure upgrade program."

4. Sponsor's Aim: The Driving Force

The sponsor of the project is the individual or entity responsible for funding and authorizing the project. Their aim should be clearly documented and aligned with the Goal.

Example:

Sponsor Aim: "To secure a long-term and sustainable increase in production at the XYZ oilfield to enhance profitability and maintain the company's market share."

Conclusion:

A well-articulated Problem/Need Statement and Goal, along with a clear understanding of the sponsor's aim, provide a strong foundation for success in any Oil & Gas project. This framework ensures clear communication, aligned efforts, and a focused approach towards achieving the desired outcomes.