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Competing and Differentiating in the MAC-Driven Global Oil and Gas Industry

Competing and Differentiating in the MAC-Driven Global Oil and Gas Industry

Profit pool mapping of automation-related project execution reveals the highly profitable blue ocean market of main automation and information contractors (MAIC).

Increasing demand for totally integrated digital operations (TIDO) forces automation suppliers to emerge as main information contractors (MIC).

Providing managed services will create significant breakthrough with national oil companies (NOCs) for greenfield and brownfield main automation contractor (MAC) opportunities.

As MAC becomes the starting point for sustained revenue opportunities in the future, automation suppliers increase their capabilities to turn potential opportunities into addressable opportunities.

The MAC market gains momentum with high complexities in integrating technologies and increasing need for automation services from front end engineering and design (FEED) to maintenance phases.

Changing Customer Buying Behavior: Declining workforce and increasing project complexities force customers to expand MAC for value-adding projects.

MAC becomes the oil and gas industry’s de-facto standard to reduce cost overruns and eliminate scheduled delays.

About this report

In the oil and gas industry, increasing CAPEX enables more companies to execute mega projects, which require new supplier engagement models, and early engagement of strategic suppliers can produce significant savings. Bottom line: automation is a strategic supplier, and the MAC concept ultimately improves project management for end users. Declining workforce, increasing project complexities, changing customer-buying approach for end-to-end systems, and increasing automation supplier capabilities drive MAC market growth. This study analyzes the market by sub-segment, geography, and project size in 2014. The competitive landscape, ecosystem trends, and existing MAC projects are analyzed. Winning strategies and top predictions are offered.


  • Executive Summary
    • CEO's 360° Perspective-Oil and Gas Industry
  • Mega Trends to Micro Booms-Definitions and Tie-ins
    • Mega Trends to Micro Booms
    • What Are Mega Trends and Micro Booms?
    • Micro Booms-What Will We be Looking Into?
  • Introduction-Scope and Segmentation
    • Scope of the Study
    • Contract Methodology Definitions-EPC
    • Contract Methodology Definitions-EPCM
    • Contract Methodology Definitions-PMC
    • Capital Project Lifecycle Overview
    • Automation Project Lifecycle Overview
  • First Base-Business Insights
    • Business Insight-What is it?
  • Business Insight 1: MAC Becomes the Oil and Gas Industry's De-facto Standard to Reduce Cost Overruns and Eliminate Scheduled Delays
    • Global CAPEX Increases Year on Year to Boost Supply
    • Energy Security Increases CAPEX across Regions
    • High CAPEX Enables More Mega Projects
    • Mega Projects Have Mega Challenges and Causes
    • Overruns and Delays Become Common for Mega Projects
    • High Stakes Mega Projects Call for New Supplier Models
    • Automation Enables Strategic Business Objectives
    • A MAC Saves 30% on Project Cost
    • MAC Saves on Cost by Participating in All Project Phases
    • MAC Enables Several Benefits over Entire Asset Lifecycle
  • Second Base-Growth Insights
    • Growth Insights-Why should I care?
  • Growth Insight 1: Changing Customer Buying Behavior-Declining Workforce and Increasing Project Complexities Force Customers to Expand MAC for Value-adding Projects
    • Convergence of Trends Further Forces MAC to Evolve
    • Customer Buying Behavior-Exxon Mobil's MICC Concept
    • Customer Buying Behavior-Shell's Honeycomb Model
    • Analysis of Global MAC Projects in the Oil and Gas Industry
      • Table MAC in Oil & Gas Industry: List of MAC Projects, Global, 2003-2014
    • Convergence of Supplier Capabilities and Customer Needs
  • Growth Insight 2: The MAC Market Gains Momentum With High Complexities in Integrating Technologies and Increasing Need for Automation Services From Front End Engineering and Design (FEED) to Maintenance Phases
    • Global Market Size for MAC in the Oil and Gas Industry
    • MAC by Project Size
    • MAC by Region
    • MAC by Value Chain Segment
    • Upstream Onshore-Conventional Oilfields
    • Upstream Onshore-Shale Plays
    • Upstream Onshore-Oil Sands
    • Upstream Offshore-Conventional Platforms
    • Upstream Offshore-FLNG (includes FPSO and FSRU)
    • Upstream Offshore-Subsea
    • Midstream-LNG
    • Midstream-GTL
    • Midstream-Pipelines and Storage
    • Downstream-Refineries and Petrochemicals
    • MAC Market Forecast in the Oil and Gas Industry
      • Table MAC in Oil & Gas Industry: MAC Market Forecast, Global, 2014-2021
  • Growth Insight 3: As MAC Becomes the Starting Point for Sustained Revenue Opportunities in the Future, Automation Suppliers Increase Their Capabilities to Turn Potential Opportunities into Addressable Opportunities
    • Competitive Landscape for MAC Projects
    • Competitors' Product Portfolio to Leverage MAC
    • Emerson Emerges as Market Leader for MAC in Oil and Gas
    • Yokogawa Offers Increased Value per MAC Engagement
    • Honeywell
    • Ecosystem Disrupted to Create More Value
  • Third Base-Profit Insights
    • Profit Insights-What should I do about it?
  • Profit Insight 1: Providing Managed Services Will Create Significant Breakthrough With National Oil Companies (Nocs) for Greenfield and Brownfield Main Automation Contractor (MAC) Opportunities
    • IOCs Widen MAC Scope through Corporate Agreements
    • Strategic Investments Will Unlock More Value From NOCs
    • Offering Managed Services for NOC
    • Offering Managed Services Widens the MAC Scope
  • Profit Insight 2: Increasing Demand for Totally Integrated Digital Operations (TIDO) Forces Automation Suppliers to Emerge as Main Information Contractors (MIC)
    • TIDO Enables Several New Industry Practices
    • MIC Becomes the Next Breed of Offering after MAC
    • IBM Explores MIC Landscape with its IT Expertise
    • Technologies and Domain Expertise Turns MAC into MAIC
  • Profit Insight 3: Profit Pool Mapping of Automation-related Project Execution Reveals the Highly Profitable Blue Ocean Market of Main Automation and Information Contractors (MAIC)
    • The Harvard Business Review (HBR) Profit Pool Analysis
    • Profit Pool for Automation Suppliers in the Oil and Gas Industry
    • Drive Corporate Agreement for Enhancing Business Value
  • Top Recommendations
  • Appendix
    • Market Engineering Methodology
    • Partial List of Companies Interviewed

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