Decision-Making Organized By Regulations In The Oil And Gas Development Industry

The oil and natural gas drilling and production industry in the United States in general and western Colorado in particular is a heavily regulated industry. Those companies operating in this industry rely on a number of functions and specialists whose work and decisions are often not well coordinated. This paper draws on the Vroom-Yetton-Jago Decision-making model to propose a decisionmaking model for companies operating in this industry. This model, the Kirtland-Ondracek Participatory Decision-making Model, organizes oil and gas company drilling and production decisions about industry regulatory issues to provide better compliance and reduce company inefficiencies and costs. In addition, the role of the company’s regulatory lead as decision leader and coordinator is discussed.
 


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