Organization

Helping oil and gas companies engineer their organizations for success

We help companies address critical challenges, boost their business performance, and build organizational health to sustain long-term excellence.

The past decade has been eventful for both the world and the energy sector. Climate change, new technologies, an unexpected global pandemic, and geopolitical tensions have all contributed to a dynamic and volatile environment. With oil and gas expected to continue playing a moderating role in the energy mix going forward, companies may need to reevaluate their operating models to adapt and remain competitive.

This could involve improving productivity, managing change, optimizing organizational size and structure, embedding gen AI into operating models, building capabilities for success, and rebalancing portfolios.

How we can help

We partner with oil and gas companies to navigate complexities and unlock new opportunities.

Transforming productivity and cost

We help companies address lower productivity levels compared to pre-COVID-19 benchmarks by identifying and implementing innovative solutions to drive efficiency and reduce costs.

Rebalancing portfolios for growth

As mergers, acquisitions, divestitures, and joint ventures become more prevalent, we support companies in reallocating capital to higher-growth, lower-risk segments and geographies, enabling value creation and long-term growth.

Cultivating “organizational superpowers”

We work with companies to identify and nurture their unique strengths in a challenging environment, positioning them to outperform competitors.

Addressing talent bottlenecks

As digitization and the energy transition progress, we help companies embrace predictive analytics to forecast skills needs, close talent gaps, and build robust technical talent pools.

Building and optimizing global capability centers

We guide companies in rethinking their global footprint in terms of technical support, enabling access to larger talent pools, cost savings, and faster speed to market while driving standardization and best practices.

Building a high-performance culture

By recognizing that culture is a critical driver of success, we help companies foster environments that encourage knowledge sharing, innovation, and exceptional results.

Harnessing the power of AI

We support companies in integrating gen AI and advanced analytics into their operating models, unlocking opportunities for strategic decision-making and operational excellence.

McKinsey Oil & Gas Practice - Organizational Work

EXAMPES OF OUR WORK

Rewiring for the future

Partnered with a global energy supermajor to design a forward-looking operating model to keep the company competitive for the next two decades. The organization, which had over 40,000 employees, was rewired by designing new workflows, streamlining decision rights, and embedding gen AI into everyday work—while steering a company-wide global operating model transformation that was projected to unlock $2 billion to $3 billion in annual savings within three years.

Managing transformational change

Guided a holistic transformation for a leading North American refiner, while also coupling operational and strategic performance levers with an enterprise-wide change management program. From C-suite to front line, the necessary mindset shifts were defined; clear, persuasive messaging was crafted to explain changes; key team members were empowered; and future-ready skills were built—boosting organizational health and culture while unlocking substantial, sustainable performance gains.

Establishing a global capability center

Supported a global energy supermajor to establish the company’s first India-based global capability center. This consolidated dispersed technical teams, unlocked cost advantages, and standardized complex workflows. Through rigorous benchmarking, location analysis, and transition planning, opportunities were identified and implementation plans developed to relocate work globally. A combination of US- and India-based support resulted in a seamless start up across more than ten locations globally.

Getting ahead of talent bottlenecks

Partnered with an Asian national oil company to reinvent its strategic workforce planning process. Business and talent strategies were linked and the data needed for strategic planning was standardized. Gen AI dashboards were used to help talent planning and decision-making, and 12-month training programs were launched to upskill HR. These actions resulted in a 30 percent increase in the accuracy of demand forecasting and 15 percent faster hiring, positioning the company for growth.

Optimizing an LNG operating model

Worked with a leading North American liquefied natural gas (LNG) operator to optimize its operating model by developing a robust full-time equivalent benchmark based on proprietary data of peers in the US Gulf Coast region. The facility’s ramp-up strategy and talent management approach were refined—aligning skills, resource levels, and timelines—to enable a successful start and lay the foundation for long-term growth.

Driving a performance transformation

Helped a national oil company retool for success in a deregulated market as it had been struggling with significant underinvestment after 30 years as a monopoly. Our holistic transformation approach led to a 24 percent rise in upstream oil production, a 4 percent gain in refining yield, a 10 percent uplift in fuel station sales, and a 10 percent drop in distribution costs.

Delivering functional excellence

Assisted a fast-growing Asian independent oil company to turn project delivery into a sustainable competitive advantage by building a cross-functional organization, shifting the culture mindset, and boosting capabilities—while continuing to execute projects worth $3 billion. All projects were delivered on time and on budget, with $500 million in accrued savings.

Transforming culture to thrive in a challenging market

Supported a leading multinational oil and gas equipment company, which was facing a 20 percent sales decline amid challenging market dynamics, on its large-scale cultural transformation. By building a network of “change agents,” the organization’s culture rapidly improved, achieving a 35 percent EBITDA uplift and implementing a forward-looking energy transition strategy.

Tech solutions

Oil & Gas Organization Benchmark

We analyze operational, technical, and support function headcount against direct peers to help companies optimize their organization, drive smarter workforce planning, and improve their performance. Our extensive proprietary database covers over 100 business units and companies across the oil and gas value chain.

Upstream Global Operations Benchmark

We help companies identify their highest-value opportunities through our proprietary database of over 25 years of operations performance insights across a broad set of global upstream oil and gas assets. The database covers operating expenditures, production efficiency, safety, emissions, well and reservoir management, offshore logistics, and growth performance.

Oil & Gas Operating Model Benchmark

We enable rapid insights into peer operating models based on an up-to-date library of proprietary data covering organization structures, workflows, decision rights across the value chain, and talent and competency grids. The benchmark allows companies to evaluate different operating model choices to enable their business strategy.

Operating Model Fingerprint

We use gen AI to map operating model choices, identifying an organization’s unique fingerprint and benchmarking against a customized set of peers.

Oil & Gas Merger Management Tool kit

We capture insights from supporting the industry’s largest mergers over the past 20 years. The tool kit covers integration boot camps, day-one checklists, draft integration plans, and value-capture opportunities.

Oil & Gas Change Management Playbook

We provide a ready-to-deploy set of actions to enable change in a complex and hazardous operating environment, recognizing the unique technical challenges posed by oil and gas assets.

OrgLab

We unlock hidden insights from human resources data, visualize design scenarios, and empower effective decisions as leaders adapt their company’s operating model to align with business strategy.

Organizational Health Index

We apply analytical rigor to organizational health management by offering quantitative diagnostics and proven recipes for success, enabling the factors required to sustain long-term performance.

FEATURED EXPERTS

Featured insights

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Blog Post

Seven organizational trends that could shape energy and materials in 2025

April 23, 2025 -

As companies deepen their focus on organizational performance to navigate market challenges, we identify seven important trends for decision-makers—with three, in particular, standing out.

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Article

Four shifts redefining the oil and gas operating model of the future

January 5, 2026 -

With rising global energy demand, continued investor expectations, and rapid technological evolution, the oil and gas industry...

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Report

The State of Energy Organizations 2024

January 25, 2024 -

The coming decade will likely be a defining one for the global energy system.

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