The Ultimate List of Oil and Gas Project Management Statistics, Trends 2023

Oil and gas project management is a complex and challenging process that involves multiple stages, from exploration to production. The industry is constantly evolving, and project managers must stay up-to-date with the latest trends, technologies, and best practices to ensure successful project delivery.

In this blog post, we will explore oil and gas project management statistics that highlight the challenges, opportunities, and trends in this dynamic industry.

Oil and Gas Project Management Stats

Oil and Gas Project Management Industry Overview

1. The global oil and gas industry is expected to reach $2.3 trillion by 2025. (Statista)
2. The industry employs over 5 million people worldwide. (Statista)
3. The US is the world’s largest producer of oil and gas, followed by Russia and Saudi Arabia. (Statista)
4. The industry accounts for 10.3% of global GDP. (World Bank)

Oil and Gas Project Management – Exploration and Production Stats

5. The average cost of an offshore drilling project is $650 million. (Energy Information Administration)
6. The average time to complete an offshore drilling project is 5-7 years. (Energy Information Administration)
7. The average cost of an onshore drilling project is $7 million. (Energy Information Administration)
8. The average time to complete an onshore drilling project is 3-6 months. (Energy Information Administration)
9. The average cost of a shale drilling project is $8-10 million. (Energy Information Administration)
10. The average time to complete a shale drilling project is 30-90 days. (Energy Information Administration)
11. The global offshore oil and gas drilling market is expected to grow at a CAGR of 7.4% from 2021 to 2028. (Grand View Research)

Topic	Data
Oil and Gas Project Management Benefits Statistics
% of non-software projects that fail to meet their stated benefits	133%
% of software projects that fail to meet their stated benefits	17%
% of projects that meet scope	61%
% of projects that meet quality standards	60%
% of projects that meet expected benefits	51%
How project success is measured
% of respondents who measure success by satisfied stakeholders	20%
% of respondents who measure success by delivered on time	19%
% of respondents who measure success by delivered within budget	18%
% of respondents who measure success by achieving target benefits	17%
% of respondents who measure success by producing high quality deliverables	15%
% of respondents who measure success by achieving acceptable ROI	9%
Top 5 PPM Functions	14% say ROI
Oil and Gas Project Management Software Statistics
% of organizations that use a PM software	22%
% of respondents who spend one or more days to manually collate project reports	50%
% of high performing projects that use project management software	77%
% of project managers who would use PM software more extensively with adequate support from their organization	66%
% of project managers who use on-premise PM software	54%
% of project managers who use no software	44%
% of respondents who use project management software to communicate with clients	66%
Average cost overrun for software projects	66%
Average cost overrun for non-software projects	43%
% of users who are either “very satisfied” or “satisfied” with their decision to use project management software	76%
% of organizations that offer PM software tool training	79%
% of organizations that offer training on PM basics	76%
% of organizations that offer advanced PM skills development	67%
% of organizations that offer leadership training	61%
Business aspects significantly improved by PM software
% of respondents who reported improvement in team communication	52%
% of respondents who reported improvement in quality of final product	44%
% of respondents who reported improvement in number of projects completed on budget	44%
% of respondents who reported improvement in number of projects completed on time
% of organizations that use PM software to communicate with clients	66%
% of respondents who are either “very satisfied” or “satisfied” with their PM software	76%
Top 5 causes of project failure
% of respondents who cited change in the organization’s priorities as the cause of failure	39%
% of respondents who cited functionality issues as the cause of failure for large IT projects	22%
% of respondents who cited schedule overruns as the cause of failure for large IT projects	28%
Oil and Gas Project Management Adoption Statistics
% of organizations that use PM software	77%
Oil and Gas Project Management Latest Statistics
Typical entry-level education for jobs in Oil and Gas Project Management
% of jobs that require a high school diploma or equivalent	8%
% of jobs that require a Bachelor’s degree	6%
% of jobs that require an Associate’s degree	4%

Project Management Challenges

12. 50% of oil and gas projects experience cost overruns. (McKinsey & Company)
13. 70% of oil and gas projects experience schedule delays. (McKinsey & Company)
14. The top three causes of project delays are engineering design changes, procurement delays, and construction delays. (McKinsey & Company)
15. The top three causes of cost overruns are scope changes, engineering design changes, and unexpected project issues. (McKinsey & Company)
16. The average cost of project delays is $6.5 million per day. (McKinsey & Company)
17. The average cost of rework due to errors and omissions is 12% of the total project cost. (McKinsey & Company)

Project Management Best Practices

18. Using a standardized project management process can reduce project costs by 20-30%. (McKinsey & Company)
19. Implementing a digital twin can reduce engineering design changes by up to 50%. (McKinsey & Company)
20. Using advanced analytics can improve project performance by up to 10%. (McKinsey & Company)
21. Implementing a risk management plan can reduce project risks by up to 50%. (McKinsey & Company)

Oil and Gas Project Management Technology Trends

22. The global digital oilfield market is expected to reach $33.3 billion by 2027. (Grand View Research)
23. The use of artificial intelligence in the oil and gas industry is expected to grow at a CAGR of 12.7% from 2021 to 2028. (Grand View Research)
24. The global oil and gas drones market is expected to grow at a CAGR of 15.5% from 2021 to 2028. (Grand View Research)
25. The use of blockchain technology in the oil and gas industry is expected to grow at a CAGR of 52.8% from 2021 to 2028. (Grand View Research)

The Importance of Risk Management in Oil and Gas Project Management

Data	Value
Biggest challenge: demonstrating the added value of the PMO	41%
Organizations that always use risk management practices	27%
Organizations that sometimes use risk management practices	35%
Organizations that never use risk management practices	3%
Senior leaders that fully understand the importance of PM	87%
Organizations satisfied with their current PM maturity level	32%
Departments with PM maturity level of 3 or more	67%
Organization-wide PM maturity level of 3 or higher	47%
Completed projects with actively supportive sponsors	62% (PMI 2017 survey)
Respondents who want business stakeholders more engaged	78% (Geneca survey)
Projects that fail due to lack of involvement from senior management	33%
Organizations that believe PM is critical to business performance and success	97% (PwC study)
Biggest impact of project management on businesses	Team communication (52%)
Improvement in the quality of the final product due to PM	44%
Improvement in customer satisfaction due to PM	38%
Respondents whose organization has a professional Project Manager	42% (Wellingtone survey)
Projects that met original goals/business intent in 2018	Nearly 70%
Projects completed within original budget in 2018	Nearly 60%
Organizations that reported lack of funding as top PM challenge in 2018	71%
Organizations that reported inconsistency in approach as top PM challenge in 2018	49%
Average IT project budget overrun according to HBR survey	27%
IT projects that become a “black swan”	1 in 6 (cost overrun of 200% and schedule overrun of 70%)
IT projects with budget over $1M more likely to fail	50%
Companies that completed 100% of their projects successfully	2.5% (PwC study)
Organizations using proven PM practices waste less money	28x less (CIO)
Respondents who spend half their time on rework	80% (Geneca survey)
People involved in projects who feel business objectives are clear	55%
People involved in projects who feel requirements process doesn’t articulate business needs	80%
Respondents who agree when a project is done	23%
Projects at IBM meeting schedule, budget, and quality goals	40%
IT projects that can threaten the existence of the company	17%
Biggest reason for dissatisfaction with a project	Price (56%)
Projects with high PM maturity level delivered on time	64%
Projects with high PM maturity level completed within budget	67%
Projects with low PM maturity level delivered on time	36%
Projects with low PM maturity level completed within budget	43%
High-performance organizations making ongoing PM training investment	83%
High-performance organizations with formal PM competency development processes	77%
Underperformers with similar PM training investment	34%
Respondents who think soft skills are more important today	51% (PMI

Risk management is a critical part of oil and gas project management. Failure to properly manage risk can lead to safety incidents, environmental damage, project delays, and cost overruns, all of which can have significant financial and reputational consequences. Project managers in the oil and gas industry must prioritize risk management to ensure the success of their projects.

6. Project Delivery Effective project delivery is crucial for the success of oil and gas projects. Here are some statistics related to project delivery:

• Only 25% of oil and gas projects are completed on time and within budget.
• The average cost overrun for an oil and gas project is 20%.
• The use of project management software can reduce the likelihood of cost overruns by 33%.

The Importance of Effective Project Delivery in Oil and Gas Project Management

Effective project delivery is essential for the success of oil and gas projects. Given the high costs and complex nature of these projects, even small delays or cost overruns can have significant financial consequences. Project managers must prioritize effective project delivery by utilizing project management software and other tools to ensure that projects are completed on time and within budget.

7. Workforce Management Managing a large and diverse workforce is a challenge in any industry, and the oil and gas industry is no exception. Here are some statistics related to workforce management:

• The average age of workers in the oil and gas industry is 49.
• 60% of the oil and gas workforce will be eligible for retirement in the next 10 years.
• The use of workforce management software can increase productivity by 20%.

The Importance of Workforce Management in Oil and Gas Project Management

With a large and aging workforce, workforce management is a critical component of oil and gas project management. By utilizing workforce management software and other tools, project managers can increase productivity, reduce costs, and ensure that projects are completed on time and within budget.

Conclusion

Effective project management is crucial for the success of oil and gas projects, which are often complex, high-cost, and high-risk. By utilizing the latest technology and tools, such as project management software, risk management software, and workforce management software, project managers in the oil and gas industry can increase productivity, reduce costs, and ensure the timely and successful completion of their projects.