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(EVM-1636) Earned Value in the Oil and Gas Industry

Primary Author: Ms. Marlene M. Hyde CCP EVP and Mr. Nicholas L. Kellar CCP EVP PSP

Audience Focus: Intermediate
Application Type: Research
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA

Abstract: This paper explores the commercial application of earned value (EV) in the Oil and Gas industries. Some of the largest and most complex projects in the world are owned and managed by a few oil companies known as “Super-Majors.” To be successful, these organizations require efficient and best practice project management techniques. This paper explores the extent to which Earned Value techniques are used on these mega-projects over one billion dollars.

The uses of Earned Value were evaluated through a 41-question written survey of knowledgeable practitioners at these Super-Major oil companies, evaluating 5 major areas of EV: Organization; Planning, Scheduling and Budgeting; Accounting; Performance Measurement; and Change Management. It was expected that the oil and gas energy sector would use a tailored approach to EV on their mega-projects and that the strictness of EV use would vary between companies and even between projects within the same company.