Management and Leadership in the Oil and Gas Context
Seismic surveys and geological studies offer the oil and gas company a reference point for hydrocarbon prospect. However, only well drilling can identify if the prospect has gas or oil. The need to find oil and gas puts pressure on the drilling project teams, trying to meet deadlines and find oil and gas for investors with stakes (Crichton, Lauche, & Flin, 2005). Apart from time constraints, a drilling team faces different challenges from the wide range of disciplines and expertise present like geophysicists, geologists, engineers, safety and regulatory, and management. As the project manager of a drilling team, this is seen the importance of applying task-oriented management style in a drilling project. In the high tension drilling sites, a task-oriented leadership style is necessary since it assists in directing the manager and their project team at getting the job done (Modine & Lloyd, 2011). The leadership style is autocratic, but necessary given the need to define the work and role of the different engineers, specialists, scientists, technicians, and managers actively and quickly. The style is very useful in putting structures in place and planning, motoring, and controlling of the drilling project (Crichton, Lauche, & Flin, 2005). Moreover, the style made it possible for the creation and maintenance of performance standards in the team. The advantage of this style is that is led to the meeting of the deadlines, especially given that the management of the team that had some of its specialists geographically dispersed. The main disadvantage of the task-oriented style of leadership is that it reduces the motivation of team members (Norrie & June, 2010). This style can reduce the motivation of team members to participate in project work, especially for highly specialized, knowledgeable, and expertise members (Norrie & June, 2010). The task-oriented method is difficult to apply especially when dealing with oil and gas teams, whose make entails engineers, scientists, geologists, and knowledgeable managers with experience.
The second leadership style is the relationship-oriented style, which is applicable especially when encouraging and motivating drilling teams working in the arctic region. This style of leadership is useful when dealing with drilling teams that have to face harsh surface and subsurface environments. Often, as a drilling team manager, exploration and drilling projects have taken the company to harsh surface environments like the arctic dessert and rough oceans. Moreover, these locations are very remote, with little if any outside communication apart from satellite phones, wireless internet often interrupted by harsh winds and storms, and the occasional air supply visit. The relationship-oriented style has come in handy in motivating teams by being approachable and friendly, while paying attention to their welfare (Northouse, 2007). This requires the provision of heating, insulation in their quarters, warm beverages, and joining them on the surface of the drilling rig. This approach has led to the creation of a drilling team that every employee wants to be part of, and in which no employee wants to leave. The challenge of using this approach is when and where to draw the line between organizational rules and code of ethics (Northouse, 2007). The other challenge is that it can lead to laxity, as teams feel closer and privileged with management, leading to difficulty in completion of tasks and meeting objectives (Sherwood & DePaolo, 2005). Given the negative and positive effects of task- and relationship-oriented leadership styles, it is evident that the combination of both approaches will create an effective and sustainable approach.
In this industry, I have seen how ineffective laissez faire management style can lead to serious injuries and accidents. In a drilling project, daily performance-based decisions and safety action plans must be tightened and scrutinized by the project leader. However, on one occasion this was left to a junior who made poor choices that lead to unintentional accidents and injuries when the drill hit a hydrate.
References
Crichton, M.T., Lauche, K., and Flin, R. (2005). Incident Command Skills in the Management of an Oil Industry Drilling Incident: a Case Study. Journal of Contingencies and Crisis Management, 13: 116–128.
Modine, J., & Lloyd, F. (2011). Upping the ante for leadership accountability in oil and gas. Offshore, 71(1), 108-108.
Norrie, E. & June, M. (2010). The Challenge of Induction! Introducing Engineering Students to Higher Education: Task-Oriented Approach. Innovation in Education and Teaching International, 39(1), 46-53.
Northouse, P. G. (2007). Leadership: Theory and practice (4th ed.). Thousand Oaks: Sage.
Randeree, K. (2011). Leadership and Teams in Business: A Study of IT Projects in the United Arab Emirates. International Journal of Managing Projects in Business, 4(1), 28-48.
Sherwood, A. L., & DePaolo, C. A. (2005). Task and relationship-oriented trust in leaders. Journal of Leadership & Organizational Studies, 12(2), 56–81.
