COMP40321 Research Methods - Free Samples to Students

In the oil industry, technological innovation started in the year 1859 by one Edwin L. Drake. Drake is remembered for having come up with a technology which would make it easier for water and oil to be effectively separated from one another. Hence since the discovery of Drake, in the oil industry innovations undertaken through science and force has been one of the main forces (Larsen 2013, p.110). In the recent time, a lot of technological advancements have been witnessed in the oil sector which has led to improved decision making, natural resource and environmental conservation. A number of technological innovations are currently being experienced in the oil and Gas industry which has eased the process of decision making (Henderson Hepsø & Mydland 2013, p.10). In the early 1980's, a number of strategies and tactics were adopted by oil companies aimed at enhancing the level of efficiency in operation, health and safety, production potential and at the same understanding the resource reservoir. There was a general wind of technological initiatives that were being experienced in the oil industry during the period of the 1990's. In the recent time, Oil companies have exploited the available technologies to effectively enhance their overall decision making capacities (Han 2017, p.620).

 Organizations and companies in a number of countries utilize various forms of technology to effectively gain a competitive advantage in the industry of operations. Decision making processes in the oil companies, are relatively complex and difficult and hence requires unique technologies (Lochman 2012, p.240). Hence oil companies in the Arabian Peninsula have invested a lot of capital to improve their overall technology capabilities which has resulted into a number of opportunities and prudent decision making. Most economies of the Arab peninsular depend on oil as their main source of revenue. These countries include Yemen, the United Arab Emirates, Qatar, Oman, Kuwait and Bahrain. For the case of countries like Saudi Arabia, oil generates over thirty percent of the country's Gross domestic product (GDP). The oil industry is mainly made up of three aspects which include the downstream, mid-stream and up stream. Production and exploration activities are mainly carried out in the upstream. Pipelines and tankers which carry crude oil to refineries are usually found in the midstream. Some of the aspects under downstream include; retail distribution, refining, marketing through convenience stores and gasoline stations.

 Three quarters of the world's oil production is undertaken by state owned organizations (Al 2011). Privately owned oil organizations appear in the list of the ten best corporations in the entire Globe. The ever increasing levels of oil production has called for a need of new and improved technology capable of promoting the efficiency use of oil resources in the environment. A number of technologies have been developed to help in meeting energy needs at a cost effective, safe and clean manner (Al 2010).

There has been development of new natural gas applications to ease the transportation of liquids, Data visualization is also currently being used in the oil sector to increase efficiency and effectiveness in the production processes, underwater hydro carbons are also being used, inspection robotics, pipe liners, corrosion detection among others. The overall production and manufacturing process requires an effective and efficient technology. As per the oxford dictionary, technology is defined as scientific application of knowledge in an industry mainly for practical needs or purposes. In the field of manufacturing, technology is defined as the utilization of high levels of processes and technical tools in manufacturing and operations. The oil industry involves a complex network of a number of integrated operations and production processes (Al 2010).

Internet of things

From the proceeding incite, we get to understand that there has been an increasing use of technology which has been accompanied by increasing integration of internet. In other words, the development in technology has taken place alongside the interconnectedness of the appliances being invented. The invention of internet started way back in the early 20^th century, which implies that there existed the interconnection of machines and appliances. However, the term Internet of Things got its official name in around 1999 and has since then, developed an increasing popularity. From a lay man’s understanding, internet of things can therefore be understood as the interconnection of electronic appliances which permits the transfer of data (Gupta Smith & Shalley 2006, p.700).

The use of internet of things has played a substantial role in providing firms with various opportunities for business which ultimately result into improved productivity, cost reduction and efficiency. In the current environment, managers in the oil companies make decision justifications regarding strategy and technology basing on the level of technology advancements. Through the utilization of technology, oil companies are able to effectively asses and evaluate the position of technology visa- vi their overall current situation and make rational decisions (Aramco 2008).

Statement of the problem

Organizations and companies invest in strategies aimed at developing new technologies in order to improve efficiency and effectiveness in there process and operations. Therefore in the area of Arab peninsular, the oil companies have realized the importance of technological innovation in the decision making process. Unlike other industries, the oil sector has unique needs which have to be addressed through the employment and adaptation of new technologies and strategies capable of improving the decision making process (Aramco 2007). Despite the numerous risks involved in the adoption of new technology, high returns are usually yielded when new and unique technology is employed in the oil industries in the area of Arab peninsular. The adoption of new technology in the oil industry has paved way for the reduction exploration risk and time wastage thus enhancing the decision making process in the oil industry.

Purpose of the research

 In the current century it’s difficult for organizations to effectively operate without an effective and efficient technology. Over the last decade a number of technologies in the oil sector have played an important role in improving the overall decision making processes, performance and other organizational operations. The overall management, business operations and behaviors of oil companies and the process of production has drastically changed due to technology. Basing on the current literature review there is evidence of the role the power of technology in shaping the overall decision making process in the oil sector in the area of Arabian Peninsula (Gokhale and Myers 2007). Therefore the main purpose of this research is to provide a clear description of the role technology in improving the decision making process taking Saudi Arabian peninsula as our case study (Grant 2013, p.120).

Research objectives

It is critically important to investigate the role of technology in improving decision making in the oil industry in the area of Arab peninsular. Therefore in order to effectively achieve the goals of the research, below will be the research objectives (Walker Waterfield & Thompson 2014, p.730).

• To determine the role of technology in the decision making process
• To identify the current technologies in the oil sector
• To identify the factors which affect technological adaptations among some companies in the area of Arab Peninsular?

Research questions

• What is the role of technological innovation in improving decision making in the oil sector
• What are the current technologies in the oil sector of Arab Peninsular?
• What are the factors affecting technological adaptations in the oil sector of Arab peninsular

Literature review

Technology transfer in the oil sector

From an economical point of view, there is an increased importance of oil among the countries in the Arab peninsula. Saudi Arabia is one of the countries that has the highest number of the oil deposits despite having less revenue, this is attributed to the poor technology used in the oil sector for example in drilling of oil. In the Arab peninsula most countries are considered as developing countries, in such countries there is high variation in technology and also transfer of technology in unsuitable (Turek &Fred 2011). This is due to lack of a well-defined plan for the transfer of technology which has greatly affected the development of this oil sector in these countries. Systematic and scientific contact with supervision, management and technology transfer create a base that is essential for technology development particularly in the oil sector (Mau et al 2015).

This process of technology transfer in the oil sector takes place under a sequence of stages which are very useful in decision making and these include the following;

Assessment and recognition phase; under this phase different technologies are gathered from various countries and carefully evaluated depending on the conditions at the site and in the country and then the ease of technology transfer is also studied. Secondly is the selection phase, this is important in the selection of the right technology to be used. It also includes the methods of transfer since technical methods could be employed transferring this technology. The internal conditions where the technology is to be delivered is equally analyzed and the right and skilled personnel is employed to carry out the task. The next phase is the adaption, this involves adopting the technology to the local environment in line with the level of investment, raw materials, production, skills and machinery. Imported technology will most likely be better than the present technology and will therefore cut the costs involved in a long run. Utilization phase will help in making sure that the technology in the sector is well used for the improvement of the products being produced and the rate at which oil is drilled and all the other services related to the imported technology. Lastly expansion as well as spreading of technology would be the last phases, under these phases this technology is improved to provide better means of solving the oil sector issues through incorporating internal skills with the technology.

Issues related to the transfer of technology in the oil sector

The two methods that are used for the development of technology in the oil sector include endogenous development with the use of internal resources and then the use of external resources from outside a given organization. In the process of the rapid change of technology in the world today, it is impossible for any country or even organization to be with all these new technologies. This means there is an increase in the transfer of technology with in the oil mining countries in the Arab peninsula. Despite the limited technology in these areas, there is quick and steady adoption to the new technologies and this adversely contributes to the stakeholder’s decision making (Cox 2017).

This requires management attention and enough support for it to be effective. Technology transfer in the oil sector involves the proper use of the transferred technology in the sector. The biggest challenge in the transfer of technology in the Arabian Peninsula has been the lack of the skilled manpower to give the required attention in terms of handling the technology. This has been a bottleneck in many oil industries in the Arabian Peninsula. Another challenge in oil sectors of the Arab peninsula is that they consider technology transfer solely for production of goods instead of using such an opportunity to create new technologies.

Application of robotics in the oil sector

A robot is made up of different components each designed to perform a given function. Some parts of the robot include end effector, actuators, sensor controller, software developments, hardware developments, robot interlacing and the manipulator (Nome 2016). Robots are becoming increasingly important in the oil sector since safety is paramount in this industry, the undeveloped mining areas in the Arabian Peninsula deserts have limited their use in the industry though they are slowly adopting to change. The ABB robotics have been the most common suppliers for the robots used in the oil fields. These robots help to improve on productivity, worker safety and the product quality. One of the commonly used robot in the oil sectors within the Arabian Peninsula is the iron Roughneck. This robot automates the dangerous and continuous task that involves connecting of pipes that transport the oil through the sea waters and the oil bearing rocks (Koenig et al 2007). This kind of automation helps to improve on the efficiency as well as the safety of the workers and the work itself. There are other robotic applications for different purposes for example the robotic drills, these kind of robots substitute the manual labor that could be used in drilling, these robotic drills are common in the Arabian Peninsula. Remotely operated drones and automatic underwater vehicles are also used. These combined together reduce the time spent while performing a given task which could have even required more expenses. Robots therefore in this way boost productivity. (Bidgoil 2006) These technologies are being incorporated together with new technologies such as video streaming which has eased transfer of data between the subsea levels and the central data hubs. The application of robots in the offshore oil industry is diverse and in the Arabian Peninsula it’s just starting to boom up (kolokolova 2007) There is also raise of the use of remotely operated vehicle that is put on the seabed. This helps in transmitting of signals on the water surface without the need of a surface vessel (Warner & Cody 2016). These robots have helped the industries in the oil sector produce standard quality products at an international level and have also helped in making informed decisions since the industries are much aware of the costs involved in producing quality products (petty 2015).

The oil and gas industry and how it works.

The most influential industry in the world is the oil and gas industry. In addition, all other sectors that is to say, steel, automotive industry and defense, metal processing corporation and fertilizers have all been influenced by the gas and oil industry. In the oil and gas industry, the following are the most considered that is to say, mid stream, upstream and downstream and each have different role they play and for manufacturing processes of gas and oil is concerned. In explanation, the process in which the crude oil is converted into more useful product is referred to as the downstream. For instance, petrol, diesel or gasoline is meant to be used in cars but they can’t be used as crude oil but they have to first undergo the process of distillation which is also known as upstream. Because crude oil is a mixture of high dense to very low dense volume molecules, there is theoretically an infinite number of compounds which can be used to separate the mixture. In the Arabian Peninsula, the direction and course of billion dollars every year are determined by the decision in the oil and gas industry (Aramco 2008).

Technology decision making

 In the oil and gas companies decisions can be made using the decision software analysis. Using this technology, a decision can be made whether to elaborate, drill or not to drill. However, decisions can be made to determine the timing of increased facilitating capacity, the drilling priority of a company's exploration opportunities, the maximum bid for a lease and the best development process for a given asset or if a long and short-term supply contract can be signed around different Arabian Peninsula countries like the Saudi Arabia (Basole Et al 2006). However, reaching more tough or complex decisions can take quite a long period of time that is to say a year or months in terms of preparation while few and quick calculations can analyze simple problems. For instance, developing a deep water prospects is one of the dilemmas challenging the oil and gas company in the recent error. It should be noted that, before selecting a production system, oil companies spend twelve to eighteen months in the decision making cycle for example in gathering information, modeling risks and uncertainty and selecting production system in the oil and gas industry. Profit therefore may be increased by shortening the time to first production by streamlining the process. Decision making in the oil and gas industry using advanced technologies helps the firm or industry with variety of business opportunities and different ways in which the firm can improve its productivity, lower costs and increase on its efficiency (Rao and Rodriguez2005). Decision makers have to justify their decisions regarding technology investment and strategy in the current competitive business environment. Technology in an oil and gas industry help in decision making by bridging the future and recent gaps so as the needs and objectives of a business are met. In addition, for many reasons, technology investment decisions are very complicated and hard to make for example, organizational influence, supplier forces, competitive pressures, customer requirements and organizational influences. Making the technology investment decision can be hard and difficult if the benefits and values of the technology cannot be identified most importantly. Many different factors which can be hard to control can influence investment technology (Rao 2005).

Factors in decision making

 The following factors are noted to be the environmental effects on decision making as far as technology investment is concerned. The first factor identified was the internal factor and external factors that is to environment. The organization’s capability in dealing with the current market trend, competition, customer's requirements and globalization are part of the environmental factors. In addition, the work instructions that the firm is using and the working condition and the overall working conditions of the organization’s infrastructure are some of the factors with significant impact. In the same manner, impact on technology investment could be made because of some external factors. Another factor is the organizational factor and they play an important part as far as technology investment decisions are concerned. One of the most significant factors as far as the organizational factor is concerned is the employees' knowledge and qualifications according to Warren. To ensure a successful adoption and implementation of technology the oil and gas company will need qualifications which include knowledge, skills and confidence. However, the following technologies have been used by the Arabs in United Arab emirates, Saudi Arabia and other Arabic countries to help in the decision making as far as the processing and drilling of oil and gas is concerned that is complex geological structure, super computer based calculations, 3D views of the surface and many other technologies (Rao 2005).

Drake’s more important contribution was developing the technology to separate the oil and water although the discovery of the technology was important to the Arabian Peninsula. The major force in the oil and gas industry since the first breaking through was innovation through technology and science (Lawson 2006). Primarily, oil have been used by the native people for almost thousands of years hence it was not discovered by Drake as noted in the books but he developed a method which could help the oil processors to produce large quantity of oil with a technology called the complex geologic structures (Weatherford 2005). What Drake developed was a method for producing large quantities of oil. It should be noted that, horizontally and vertically, drilling technology has progressed from 71 feet to many miles below the surface. In the past error, technology like rudimentary geology was used in the gas and oil but recently things changed from the rudimentary way more advanced technology like use of 3D views of surface, and super computer based calculations. It should be noted that innovation and technology are the major running factors in the gas and oil industry of the twenty first century. The manner in which oil and gas reserves are developed, identified and produced have been dramatically altered by the use of advanced technology. Environmental protection and conservation of natural resources have also been improved due to advancement in technology (Frank 2005).

Research Methodology

 This section describes the different tasks undertaken when carrying out the project.A task is defined as an activity to be completed in a specified period time or within a given deadline with a reason of achieving the project goals and objectives. A task is further broken down into smaller assignments defined from the start to end date for completion. The section further identifies the different research methods, research strategies, data collection procedures in detail used in researching the different data, adequate technologies which were useful in the completion of the project. The different tasks undertaken when carrying out the project on the importance of technology when making decisions by decision makers while in oil companies in the Arabian Peninsula are described in details.

Research Design

 When analyzing the use of technology to decision makers in the oil companies in the Arabian Penesuila, the research was based on the data relevant to these companies, this data was searched using existing databases and search engines so as to give relevant articles to provide the information. The research also applied the ontology and epistemology approaches to information research. The Ontology approach was very helpful in giving the relationship between the different concepts while carrying out the project (Virine & Trumper2017). This relationship was very necessary when answering the existing research questions and meeting the aim as well as the project objectives. The epistemology approach was useful in the describing the scientific ways with their fundamental choices as they were used when carrying out the project. Like the ontology approach, epistemology was also useful in making the project a success.

Sampling

When carrying out the research, sampling is very useful. Sampling in research refers to method of making a selection of a given set of population from the whole existing population. Therefore a small sample may represent the overall population in relation to characteristics. In our project of determining the importance of technology to oil companies, the sampling technique applied was stratified sampling because there was a need of selecting the right group of people from the population. This sampling methodology involves dividing the existing population into stratum and from each, different individuals is selected according to the needed characteristics. While making a selection, demographic factors were not considered (Saggi 2003).A stratified sampling technique was used because of a need of obtaining quality results and also avoid errors.

Data collection techniques

The different data collection methodologies applied when carrying out the research on the project were; reviewing the existing literature about the application of technology in the oil industries by using the search databases and search engines. The second data collection method applied was carrying out the survey, this survey was online based (Bethlehem 2012). Using surveys as data collection method is classified as qualitative data collection technique, it was chosen because it was time saving, applicable, real time, and convenient. This survey was online, it generated a lot of useful information to the researcher on how the project was to be conducted (Vehovar &Lozar2008).

Measures in the project

While carrying out the planning of the project, different planning tasks together with assignments where undertaken so as to make it a success, Some of these tasks include; defining the goals of the project, coming up with the project deliverables, defining the needs of the different stakeholders involved within the project, coming up with the project work plan describing the different plans such as human resource plan, and closure of the project. These tasks were useful since their success would make the all research project cycle useful to the researcher.

Data analysis methods

 In the research, while carrying out analysis and representation of collected data, two data analysis methodologies are always considered, these methodologies are either qualitative data analysis or quantitative data analysis and sometimes both are applied. This study considered the two forms of analyzing data. The qualitative analysis of data was very useful in analyzing data from qualitative data collection or non-statistical data. The quantitative data analysis involved the analysis of mathematical data. These forms of data analysis were very useful because both were used for checking the validity of the data collected. In our research, qualitative data analysis methodology was applied more than quantitative.

Ethical considerations

During the carryout of the project, safeguard and respect to the rights of privacy, free will, well-being of the different research participants and as well as their confidentiality was put into consideration. The burden of study to the participants was minimized to the lowest extent possible while adhering to the different legal and ethical obligations towards them. An informed consent was obtained from each research participant. Ethically, protocol for project members and interviewers were developed in order to protect the participants' or respondents' survey data and identified details. During the research, voluntary consent for additional activities for data collection was obtained as well as different procedure were developed.

Data Validation

Different strategies were applied in validating the data, the best strategy which was applied is Triangulation. Several moderators from different locations, and multiple individuals analyzing the same data collected where used. The other validity methodology used was respondent validation where the initial results from the respondents or participants were analyzed together with them to see whether there is a correlation. But using these results, care was taken for them to remain authentic.

Description of the different tasks undertaken during project planning

The most important task in project planning is initialization of the project and its plan. This involved the carrying out of all research procedures about the different technologies that are applied within the oil companies within the Arabian Peninsula. In this stage, different assignments were undertaken, some of these are; defining the scope and purpose of the research project, defining the necessary functional and non-functional requirements for the research project.

A function requirement is defined as the specific behavior of the system while meeting the certain needed condition. Functional requirements were used in defining what specifically the technologies would do and the same time the applicability of the project (Fleming 2005). One of the example of function requirement as applied to the project is sending new emails in case of oil theft. The different analyzed functional requirements of the required hardware and software systems as applied in the oil companies are; adjacency to the business rules within the companies, proper authentication and authorization levels so as to overcome security threats, proper audit tracking, ability to report the different the needed business requirements. The project was useful in coming up with a system that should be meeting the regulatory and legal requirements within the countries of application.

The non-function requirements as analyzed within the project specifically denoted the requirements that specified the performance of the different software within the oil companies so as to attain certain functions (Filicetti 2009). In conducting projects, non-functional requirements are very useful in giving descriptions on how systems should behave. Technology as applied in the oil companies should be characterized with the following non-functional requirements; it should be reliable, maintainable, recoverable, usable by the different stakeholders, and at the same time secure. This technology should also support interoperability as well as updates. While executing this phase or stage, the researcher was able to undertake a feasibility study so as to give a firm foundation for planning of the full project.

The different tasks undertaken during project planning

The planning phase in managing is very essential when planning the project and it should be among the first steps undertaken when carrying out the project management (Harold 2003). There are number of tasks which are undertaken when carrying out project planning, some of tasks which are undertaken when carrying out project planning include;

 Defining the goals of the project, the goal of this project is to describe the importance of technology within the oil companies specifically in the Arab Peninsula, under this task the different stake holders were defined as well as the beneficiaries. The different beneficiaries and stake holders in this project are the customers who receive the services provided by the oil companies, the managers and workers within the industry are also considered because they are to benefit from the research project. Once the different stakeholders are recognized within the establishment of the project, there needs would automatically be met (Richard & Edward2000). Meeting the needs of the customers would make the project planning procedure successful.

The second task which was undertaken is creating the work plan for attaining goals and at the same time addressing the existing technological problems facing the different oil companies. Together with the work plan and identification of the stake holders of the project, the different deliverables were also established which were very helpful in carrying out project schedule. The project schedule was very useful in defining the different tasks carried out in meeting the stated deliverables, the schedule consists of the schedule allocated time for the implementation of each assignment as well as the different individuals who are involved in the fulfillment of the tasks. When making the schedule, it is also very useful to allocate the resources that are be used in completion of the project. One of the needed resources for the project is the information about the existence of different data about the technologies, both software and hardware, that could be applied by the oil companies. The project schedule was developed using a Microsoft project. The possible challenges that were noted as to possibly occur when carrying out this task include; delays, over estimations, and working outside the project scope.

The other task undertaken during the planning of the project was creating the different sub-plans under the work plan. These sub plans are also supported so as to make the planning process acceptable. The different sub plans which were included directly into the work plan included; the communication plan which was useful in the establishment of effective communication during the carrying out of the project. This plan also consisted of different stake holders and researchers who were to be kept informed during the progress and implementation of project as well as how as the information would be received. The other plan which was drafted was the risk management plan, this was very important plan. It showed the different risks that would occur during the carrying out our research project. Some of the possible risks involved in this plan were; Optimistic when estimating cost and time, unclear responsibilities and roles, research reviews being slow as well the unexpected cuts in budgets, poor communications, failure to understand the needs of the stakeholders, and other risks. These risks were tracked simply through the use of the risk log. The other plan drawn was the human resource plan which consisted of the different organizations and individuals by their names together with their roles during the process of carrying out the project study (Made et al 2013).

Gantt diagram illustrating tasks

Results and discussions

Basing on the research conducted in the area of Arab peninsular, it was found out that technology adaptation is critically important to most management and company boards. Further the importance of investment in technology to aid the process of decision making in most oil companies was emphasized. Most of the oil companies investigated by the research provided there justification of investing in technology as a way of aiding the decision making process by using the internal rate of return and the net present value. In addition external and internal difficulties and factors such as lack of understanding of government rules and regulations, lack of information about technology, forecasting market trend difficulties were also identified as some of the factors affecting technological adaptations

More over the planning for the adaption of unique and relevant technologies was one of the key areas that most oil companies in the Arab peninsular emphasized. Technological consideration is affected by a number of factors like management style and strategy of the organization

 In addition, apart from enhancing the effective of decision making process, technology in the oil sector has resulted into huge benefit to the economies of Arab peninsular through enhancing oil discovery, exploration and natural resource conservation there technologies (Castrilon and Cartona 2005). Therefore technology is a critical aspect in enhancing the overall level of productivity in the oil sector not only in the area of Arab peninsular but also in other parts of the world. Oil companies in the area of Arab peninsular has of recent attained a high level of efficiency and effectiveness in there processes as a result of technological advancements which has in one way or the other improved decision making. The fact that most of new technologies call for huge investments does not rule out the fact that technological is an important aspect in improving the level of decision making in the oil industry. It should be noted that innovative technology had made it easy and cost effective to effectively undertake a number of oil programs like natural gas extraction. Government of the countries in Arabian Peninsula have played a fundamental role in enhancing the level of technological innovation most oil companies through social pressures and policy (Gokhale and Myers 2007).

Conclusion

Conclusively, the research paper aimed at providing a deeper analysis of the technological developments in the oil and gas sector and their impact in the decision making process. A number of developments have taken place in the oil industry which has brought about a number of significant improvements in the overall decision making process in the oil sector thus encouraging efficiency and effectiveness in the production process. The Arabian Peninsula is known globally for its innovative oil industry which has been enhanced by the good policy on technological development and other innovations undertaken by oil companies as comprehensively discussed above

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