Results 1-10 of 20
Realigning UK Energy Policy
From a High Cost, Low Quality System to a Robust, Cost-Efficient Infrastructure
For more than a decade, the Government has pursued a series of inconsistent policies in the electricity sector, flip-flopping between conflicting policy objectives that if implemented would likely lead to a high cost, but low quality, electricity system that will not deliver the desired climate change objectives. We question whether the current policies offer good value for money for consumers. Lower cost solutions are possible, which would be easier to implement and produce a better quality outcome for consumers while still achieving realistic and worthwhile reductions in greenhouse gas emissions. The question is whether or not the coalition Government has the political will to change direction: if it can, there is a sizeable prize at stake for UK plc -- a lower cost way to achieve the energy policy objectives will free up resources for use in other areas. The first Annual Energy Statement published on 27 July 2010 shows that the Government is willing to grapple with the challenge.
Released: August 2010
To download please login or register as a new user ADL_Realigning_UK_Energy_Policy.pdf (.PDF, 464 kB)
Nuclear New Build Unveiled
Is Nuclear New Build more a Management than a Technology Challenge?
The new build of nuclear power plants is one of the present day’s most complex technical undertakings and frequently puts owners in the position of facing tremendous financial risks. Inaccurate understanding of projects risks and inaccurate prioritization of critical activities often lead to significant delays and budget overruns. The study "Nuclear New Build Unveiled" analyzes the current status, trends and challenges within the nuclear industry, particularly in the context of many projects being run on very tight time schedules by teams with little or no experience of nuclear new build. The study concludes that, besides its technical complexity, the management issues of a nuclear new build are often underestimated and call for professional management of the venture.
Released: June 2010
To download please login or register as a new user ADL_Nuclear_New_Build_Unveiled.pdf (.PDF, 2 MB)
Improving Management of Potentially Catastrophic Risks
In the Oil & Gas Industry
Recent catastrophic events show that, despite carefully planned and implemented risk management, the impact of residual risks can present significant damage to an Oil & Gas company’s balance sheet. Amongst other initiatives, this has turned industry attention to the assessment of Exposure to Risk (EtR) – the concept of the maximum potential economic loss associated with catastrophic risk. Such focus provides a basis for strengthening of arrangements – from Strategy through Process and Organization to Methodologies and Tools, providing benefit to long-term stability of the balance sheet.
Released: June 2010
To download please login or register as a new user ADL_Energy_Utilities_Catastrophic_Risks.pdf (.PDF, 3.42 MB)
Manufacturing Network Concentration
Now Could Be the Time to Act
Manufacturing networks drive unnecessary costs, capital and obstruct service if not aligned with products, sales and production technology. Historic events and organizational heritage often lead to manufacturing networks that are not optimal from these perspectives. Although companies are often aware of the problems, many are hesitant to start restructuring activities in a good business climate. The current economic downturn accentuates the problems with overcapacity, high fixed cost or geographical imbalances. Arthur D. Little argues that now is a good time to review and restructure manufacturing networks. Arthur D. Little offers a pragmatic yet rigorous method to quickly come to the right decisions and put implementation plans and structures in place.
Released: February 2010
To download please login or register as a new user ADL_Manufacturing_network_concentration.pdf (.PDF, 331 kB)
Time for Change
Oil Company Asset Management
Structural changes taking place in the oil supply outlook are making it very complex for international oil companies (IOCs) to pursue their key twin targets: reserves replacement at sustainable cost, and operational efficiency to sustain the levels of profitability that investors and markets expect of them.
Traditional models of asset management - focused on individual asset performance and short term results - are already limiting what IOCs can accomplish today. And additional challenges are emerging for the future: e.g. asset operations will need to be capable of quicker response to the accommodate market changes, and greater awareness will be needed of the full spectrum of opportunities and threats to which assets are exposed.
IOCs where asset and field managers merely perform tasks, rather than attempting to run a business as part of an overall enterprise, will not be able to deliver their full potential. They, and their colleagues in the corporate strategy rooms, need to radically rethink their vision of asset management.
To address these challenges, both present and future, we propose here a holistic approach to asset management - one that supports consistent and integrated decision-making at each level of the asset portfolio. This approach provides a route to improving current practises, accelerating response to market changes, delivering better resource allocation and utilization, and ensuring optimum cross-asset use of best practice and innovation.
Released: December 2009
To download please login or register as a new user ADL_Time_for_Change.pdf (.PDF, 664 kB)
Managing Capital Investment Programs
Effective project selection and management is not a new message – some would say that the following observations are “obvious”. However, the litany of recent over-budget and over-schedule oil and gas projects demonstrates that even the most sophisticated upstream companies are not able to “get it right” every time. Arthur D. Little believes that our lifecycle approach to capital investment helps to identify the causes for failure of projects and provides insight into increasing the effectiveness and efficiency of infrastructure capital.
Released: April 2009
To download please login or register as a new user ADL_CAPEX_Management.pdf (.PDF, 398 kB)
The Burning Question
Peter Hughes, Director at Arthur D. Little’s Energy & Utilities Practice delivers a keynote speech to Stanford University’s Program on Energy and Sustainable Development. The speech discusses the reasons behind Europe’s growing reliance on imported natural gas and what is happening now as the world faces a critical moment in the development of global energy policy and regulation.
Released: March 2009
To download please login or register as a new user ADL_Stanford_Speech_Peter_Hughes_Web.pdf (.PDF, 1.71 MB)
Reshaping the Corporate Center
Despite their success in improving operational efficiency, many corporates struggle when it comes to optimizing support and back-office functions. Simply cutting cost and setting crude targets for these functions results in little more than frustration for everyone involved. Arthur D. Little uses a different approach; one that looks not just at the cost of each function but also at the value of the services it delivers. Our approach offers a far more precise assessment of what needs to be kept, what needs to be done differently and what needs to be discontinued. The result? Corporate headquarters many companies have never dared to imagine: business-focused, flexible, lean where possible, strong where necessary - a true support for the business.
Released: February 2009
To download please login or register as a new user ADL_Reshaping_the_Corporate_Center.pdf (.PDF, 801 kB)
The Beginning of the End for Oil?
Peak Oil: A Demand-side Phenomenon?
The consensus is that oil will resume its long-term growth trend when the world emerges from the current recession. However, there is a distinct possibility of a radical shift in the energy path the world is following and an uncertain future for oil demand.
Released: February 2009
To download please login or register as a new user ADL_Peak_Oil_FINAL.pdf (.PDF, 405 kB)
Expatriate Games
Where is the Long Term Value?
Where is the Long Term Value? In the 1970’s the Middle East saw the beginning of a dramatic rise in oil and gas exploration and production activity, with an equally dramatic growth in the expatriate community.
Released: December 2008
To download please login or register as a new user ADL_Expatriate_Games_01.pdf (.PDF, 291 kB)