Development of performance‐based service strategies for the oil and gas industry: a case study

Abstract

Purpose

The main purpose of the paper is to present a framework for the development of performance‐based service strategies for the oil and gas industry in Norway. The framework considers various influencing factors and their attributes, as well as performance factors categorized as critical success factors, performance killers and cost drivers.

Design/methodology/approach

A case study has been conducted to map current practices, to validate the influencing factor attributes, and to suggest performance factors. Data have been collected through an e‐mail questionnaire, face‐to‐face interviews, available documents from the industry and a literature survey.

Findings

Operators of complex oil and gas production facilities are becoming increasingly dependent on service providers to support their efforts to perform according to demands. When developing a performance‐based service strategy one needs to consider influencing factors and attributes. Furthermore, one needs to measure the service delivery process performance and the gaps between required and delivered services, and to periodically reassess the service strategy influencing factors.

Research limitations/implications

The research is based on a case study in the Norwegian oil and gas industry, but the results can be adapted for other industries as well.

Originality/value

The proposed framework can support practitioners in the oil and gas industry to develop performance‐based service strategies and can assist practitioners in reducing costs and improving performance.

Citation

Kumar, R. and Markeset, T. (2007), "Development of performance‐based service strategies for the oil and gas industry: a case study", Journal of Business & Industrial Marketing, Vol. 22 No. 4, pp. 272-280. https://doi.org/10.1108/08858620710754531