How decisions are shaped before sourcing begins — and why structure in this phase determines strategic flexibility later in the project.
In many oil and gas projects, the formal procurement process begins only after key strategic and technical decisions have already been made.
This is not a new observation. In 2019, a joint industry guideline led by Norsk Industri and Offshore Norge highlighted recurring structural challenges in Norwegian oil and gas projects: late supplier involvement, limited cross-functional collaboration, and reduced flexibility as projects matured. The message was clear — commercial influence was often constrained early in the project lifecycle, before formal procurement processes began.
Since 2019, conditions have become more demanding. In its Oil and Gas Industry Outlook 2026, Deloitte describes persistent geopolitical instability, supply chain volatility, rising capital requirements, and regulatory complexity as structural realities. Energy security, supplier resilience, and transparency are no longer support functions, but board-level priorities.
In such a landscape, the consequences of structural misalignment increase.
The procurement function often participates early in projects, but participation alone does not necessarily translate into real influence.
In sequential project models, the technical solution is defined first, specifications mature, and only then does formal sourcing begin. When this happens, procurement may be asked to negotiate price after the strategic room for maneuver has already narrowed.
This is not about lack of competence, but about how responsibilities, systems, and incentives are structured. When coordination happens after decisions are locked, influence shifts from shaping solutions to managing constraints.
The consequences accumulate through:
Most delays are not caused by early reflection, but by late adjustments.
In capital-intensive projects with long lead times and concentrated supplier markets, optionality directly affects pricing, delivery risk, and compliance.
Early commercial involvement is not about slowing technical decisions, but about structuring reflection while alternatives are still open.
Many systems support execution well — documentation and transactions are handled efficiently. What is more often missing is structure for how decisions are formed before execution begins.
When technical and commercial perspectives shape the problem definition in parallel:
In complex environments, this is not merely process improvement. It determines the quality of the decisions that are made.
Oil and gas companies expect strategic procurement. But strategy is formed before negotiation begins.
Is procurement involved when choices are shaped — or only when the alternatives are already gone?