INDUSTRY Insights
THE rapid growth over the last five years of natural gas, gas liquids and crude oil activity in shale
basins has single-handedly changed
the global nature of energy production. The impact on companies in the
upstream, midstream and downstream
sectors is seen in increased competition for supply and markets as well as
human and financial capital. Complicating ongoing business management
is the large amount of data from sprawling assets that needs to be analyzed and
acted upon in a narrow real-time window through a compelling format. In
this article, Eric Scheller discusses the
challenges and options facing business
directors as they try to fully disseminate
and leverage data in the management
and growth of their businesses.
Trends Driving Increased Complexity
When Mitchell Energy completed its
first economic shale fracture in 1998,
no one thought it would lead to the
unprecedented shifts in energy mar-
kets that we are experiencing today.
In fact, there were many experts who
did not see the development of these
unconventional plays and now believe
that North American shale develop-
ment is still in its early stages. Consider
how much shale plays have moved the
North American energy landscape over
the last five years:
• Record production increases in natu-
ral gas and oil
• Prolific NGL production from liquid-
rich gas processing
•Historical build out of midstream
infrastructure
• Revitalized North American petro-
chemical industry
It’s clear that upstream producers,
midstream and downstream companies
have had their share of growing pains
in dealing with the increase in inter-
Evidence-Based Management:
a Practical Management
Approach for the Energy Industry
By Eric Scheller, Director at Sapient Global Markets
ERIC SCHELLER is subject matter expert within Sapient Global Markets’ Midstream
practice. He has over 25 years of experience in oil, gas, NGLs and chemicals. His practice
areas include business and asset operations strategy, development and business in distress
and corporate restructurings as well as commodity marketing and trading. He has served in
a variety of business development, consulting, commercial, operations and technical roles for
several major companies.
Photo by Rachel Seeley, UOGR
