The Unique Edge of Business Development Managers with Operational Experience in Oil & Gas

In the highly specialized and complex field of upstream oil and gas, business development requires more than just a strategic mind—it demands a deep understanding of the intricacies of the industry, from field operations to contractual negotiations. From my experience, there’s a notable distinction between business development managers who have spent time in drilling operations versus those who come from purely commercial backgrounds. Those who have had firsthand operational exposure tend to have a unique advantage when it comes to making decisions and navigating the complexities of the sector.

Managers with a background in drilling operations possess a hands-on perspective that often translates into more pragmatic and informed business decisions. Their experience on the rig, whether in drilling supervision, rig maintenance, or directional drilling, provides them with a solid foundation that purely office-based managers may lack. This field exposure equips them with:

1. Better Risk Assessment: Understanding the technical challenges and operational risks allows these managers to evaluate project feasibility more accurately. They can foresee potential issues in drilling timelines, equipment requirements, and operational hazards, which helps in shaping realistic and profitable business strategies.
2. Improved Communication with Technical Teams: A background in drilling operations allows business development managers to speak the language of field engineers, drilling supervisors, and technical teams. This ability fosters smoother collaboration between operations and commercial departments, ensuring that the technical aspects of projects are aligned with business goals.
3. Informed Decision-Making: Managers who understand the operational realities—such as rig downtime, tool selection, and the significance of subsurface conditions—can make more informed choices when it comes to project planning and contract negotiations. They are less likely to make assumptions that could later lead to costly delays or overruns.
4. Practical Approach to Cost Efficiency: Having seen firsthand how operational costs accumulate—from drilling materials to personnel—these managers tend to have a more practical approach to cost-cutting without compromising safety or efficiency. Their understanding of the operational impact of budget decisions ensures that financial strategies support, rather than hinder, successful project outcomes.
5. Enhanced Problem-Solving Skills: Field experience exposes individuals to a range of unforeseen issues, from equipment failures to environmental challenges. This gives them a sharper edge when it comes to problem-solving in a business context, as they are better equipped to handle the unpredictable nature of upstream operations.

In my opinion, business development managers who have spent time in the field bring invaluable insights into their roles. They possess a holistic view of the entire value chain—from exploration and production to contracts and commercial strategies—which allows them to create more robust business plans that drive long-term success.

With the increasingly complex demands of the oil and gas industry, it’s time we place more value on operational experience as a crucial factor in selecting business development leaders. In doing so, companies can benefit from more strategic decision-making, improved project outcomes, and stronger alignment between technical and commercial teams.

Thank you

Amin Mahtabi