When and how to create strategic alliances
As oil prices remain flat and discoveries become more costly, the relationships between suppliers and operators are changing. Arms-length, unit pricing buying practices remain the norm for many buyers, but others have identified advantages of forming alliances that make greater use of the suppliers' capabilities. Recently, operators and the service industry have started to evolve a new culture that provides value-added solutions in an incentive environment. coupled with long-term risk-sharing or partnering arrangements, the potential advantages to both the operator and supplier are clear. An alliance is a long-term commitment between the operator and one or more supplier organizations, formed to achieve well-defined project objectives in a way that is beneficial to all alliance partners. Alliances take many forms and are adapted to meet the needs of the project. Successful alliances are characterized by trust, common goals and open communication. They build on the efficiencies, capabilities and strengths each partner brings to the relationship. The nine steps to creating a successful alliance are described.
- OSTI ID:
- 7221846
- Journal Information:
- Petroleum Engineer International; (United States), Journal Name: Petroleum Engineer International; (United States) Vol. 66:6; ISSN 0164-8322; ISSN PEEID4
- Country of Publication:
- United States
- Language:
- English
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