Barnett Shale Case
Change-in-Practice
Foundation
Executive Summary: Barnett Shale activity has vastly declined since its peak in 2008. “The decline in Barnett Shale drilling can be attributed to several factors. The industry has rushed to shift resources to areas that produce crude oil, like the Bakken Shale in North Dakota and the Eagle Ford Shale in South Texas, which sells for higher prices than gas. And other shale gas fields like the booming Marcellus Shale have surpassed the Barnett in daily production, further pushing the 30-year-old North Texas fields into the background” (Star Telegram) In 2009 my company XTO Energy Inc. had twenty eight drilling rigs running. Last year we dropped down to one drilling rig and have remained at one rig this year. …show more content…
“ Last year, citing official Texas Railroad Commission and Powell Shale Digest figures, we said the big North Texas natural gas field dipped below 5 billion cubic feet in June 2013, which would have been its lowest production since December 2009” (Star Telegram Dec 27, 2013)
Producers for several years have been looking for crude oil and natural gas liquids, which attract much better prices than dry natural gas.
Producers drilled 784 wells in the Barnett through Dec. 13, according to the Texas Railroad Commission. That is down from 840 in 2012 and compares with a high of 3,594 in 2009. 2013’s total will likely end up close to 800, which would be the lowest since 2005
Step 1: Establishing a Sense of Urgency
-Establish a sense of urgency by creating a compelling reason for why change is needed (Robbins 269).
“The first step is esstential because just getting a transformation program started requires the aggressive cooperation of many individuals. Without motivation, people won’t help, and the effort goes nowhere “(Kotter, 3).
-Talk with my manager and Permian Land Manager about merging the two groups together
-Gain support from Barnett and Permian groups
-Develop a sense of urgency around the need for change – Barnett group is slow could save money and resources by merging the two groups
-May help spark initial motivation to get things moving
-Pitfalls – Underestimating the difficulty of driving people from their comfort zones. (pg 1)
-Becoming paralyzed by risk (pg 1)
-Kotter states that over 50% of the companies he has watched fail in the first phase (3).
-Convincing people of the need for change is much harder, but you have more resources to help make changes. (3)
-As one European CEO said “to make the status quo seem more dangerous than launching into the unknown” (3).
Step 2: Forming a Powerful Guiding Coalition
Step 3: Creating a …show more content…
Vision
“We need leaders today to challenge the status quo, create visions of the future, and inspire organizational members to want to achieve the visions” (Robbins & Judge 179).
“By arousing emotions and linking them to an appealing vision leaders increase the likelihood that managers and employees alike will accept change” (Robbins & Judge 58)
Step 4: Communicating a Vision
“It begins with articulating an appealing vision, a long terms strategy for attaining a goal by linking the present with a better future for the organization” (Robbins & Judge 186).
Step 5: Empowering Others to Act on the Vision
“ ? defines leadership as the ability to influence a group toward the achievement of a vision or set of goals”
(178).
“effective business leaders in any country are expected by their subordinates to provide a powerful and proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills to assist in implementing the vision” (191).
Step 6: Planning and Creating Short-Term Wins
Step 7: Consolidating Improvements and Producing Still More Change
Step 8: Institutionalizing New Approaches
References
Kotter, John P. “Leading Change, Why Transformation Efforts Fail.” Harvard Business Review. January 2007. Print.
http://www.star-telegram.com/2014/06/04/5874417/barnett-shale-production-hits.html http://www.star-telegram.com/2014/04/18/5748993/barnett-shale-rig-count-slides.html http://www.star-telegram.com/2013/12/26/5444217/drilling-in-barnett-shale-slows.html
Foundation
Executive Summary: Barnett Shale activity has vastly declined since its peak in 2008. “The decline in Barnett Shale drilling can be attributed to several factors. The industry has rushed to shift resources to areas that produce crude oil, like the Bakken Shale in North Dakota and the Eagle Ford Shale in South Texas, which sells for higher prices than gas. And other shale gas fields like the booming Marcellus Shale have surpassed the Barnett in daily production, further pushing the 30-year-old North Texas fields into the background” (Star Telegram) In 2009 my company XTO Energy Inc. had twenty eight drilling rigs running. Last year we dropped down to one drilling rig and have remained at one rig this year. …show more content…
“ Last year, citing official Texas Railroad Commission and Powell Shale Digest figures, we said the big North Texas natural gas field dipped below 5 billion cubic feet in June 2013, which would have been its lowest production since December 2009” (Star Telegram Dec 27, 2013)
Producers for several years have been looking for crude oil and natural gas liquids, which attract much better prices than dry natural gas.
Producers drilled 784 wells in the Barnett through Dec. 13, according to the Texas Railroad Commission. That is down from 840 in 2012 and compares with a high of 3,594 in 2009. 2013’s total will likely end up close to 800, which would be the lowest since 2005
Step 1: Establishing a Sense of Urgency
-Establish a sense of urgency by creating a compelling reason for why change is needed (Robbins 269).
“The first step is esstential because just getting a transformation program started requires the aggressive cooperation of many individuals. Without motivation, people won’t help, and the effort goes nowhere “(Kotter, 3).
-Talk with my manager and Permian Land Manager about merging the two groups together
-Gain support from Barnett and Permian groups
-Develop a sense of urgency around the need for change – Barnett group is slow could save money and resources by merging the two groups
-May help spark initial motivation to get things moving
-Pitfalls – Underestimating the difficulty of driving people from their comfort zones. (pg 1)
-Becoming paralyzed by risk (pg 1)
-Kotter states that over 50% of the companies he has watched fail in the first phase (3).
-Convincing people of the need for change is much harder, but you have more resources to help make changes. (3)
-As one European CEO said “to make the status quo seem more dangerous than launching into the unknown” (3).
Step 2: Forming a Powerful Guiding Coalition
Step 3: Creating a …show more content…
Vision
“We need leaders today to challenge the status quo, create visions of the future, and inspire organizational members to want to achieve the visions” (Robbins & Judge 179).
“By arousing emotions and linking them to an appealing vision leaders increase the likelihood that managers and employees alike will accept change” (Robbins & Judge 58)
Step 4: Communicating a Vision
“It begins with articulating an appealing vision, a long terms strategy for attaining a goal by linking the present with a better future for the organization” (Robbins & Judge 186).
Step 5: Empowering Others to Act on the Vision
“ ? defines leadership as the ability to influence a group toward the achievement of a vision or set of goals”
(178).
“effective business leaders in any country are expected by their subordinates to provide a powerful and proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills to assist in implementing the vision” (191).
Step 6: Planning and Creating Short-Term Wins
Step 7: Consolidating Improvements and Producing Still More Change
Step 8: Institutionalizing New Approaches
References
Kotter, John P. “Leading Change, Why Transformation Efforts Fail.” Harvard Business Review. January 2007. Print.
http://www.star-telegram.com/2014/06/04/5874417/barnett-shale-production-hits.html http://www.star-telegram.com/2014/04/18/5748993/barnett-shale-rig-count-slides.html http://www.star-telegram.com/2013/12/26/5444217/drilling-in-barnett-shale-slows.html