In an excerpt from his exclusive interview with Mexico Oil & Gas Review 2016, Vernon Murray, Vice President and General Manager of Emerson Mexico and Northern Latin America explains the company’s business strategy, and the unique value proposition that will set it apart in the new Mexican energy industry.
Q: What are the main pillars that have driven Emerson’s business strategy in 2015, and what changes must be implemented in order to meet the needs of the market in the future?
A: Emerson bases its business strategy on four main pillars that have been identified as highly relevant during the company’s operations in different markets. The first pillar is the company’s proximity to the customers, as Emerson acknowledges that the connectivity with clients is critical to the success of its operations. For this purpose, in Mexico we have a sales force devoted to the oil and gas, power, and chemical sectors. Additionally, the company owns eight regional offices, including recently expanded facilities in Villahermosa, which offer services to our clients in different regions of the country.
The company’s second pillar is technology and innovation. Emerson has always been recognized as a technological leader in the automation sector and, therefore, when people examine our product portfolio, brands like Fisher or Rosemount are immediately recognized as they are well-positioned in the market. Additionally, Emerson strategically enhances its product and service offering through acquisitions. In the past couple of years, Emerson has acquired Enardo, a world leader in the development and manufacture of vapor control equipment, and Virgo, a leading manufacturer of valves and automation systems. The acquisition of Enardo was especially relevant for our Mexican operations, as this company has strong links with PEMEX. Enardo and Virgo are examples of strategic acquisitions that will continue to grow together with the new products from our technology and innovation department.
The third pillar is an initiative called “perfect execution”, which was created to help our customers comply with their established budgets and schedules. This pilar is particularly important for the oil and gas industry, since it has been observed that 65% of the projects over US$1 billion in the sector fail in terms of either time or cost. In this sense, “perfect execution” is a transformational approach seeking to revolutionize the way in which EPC companies and end customers collaborate, with the purpose of optimizing the project’s execution phase, improving capital efficiency, and delivering more reliable schedules. With this initiative, Emerson is trying to lead the conversation in the Project Certainty area, which will be extremely important for the upcoming oil and gas projects that will begin operations in the country.
Finally, the fourth pillar involves lifecycle services, which is perhaps the most important cornerstone of our operations in Mexico. In simple terms, life cycle services involve providing our customers the right solution at the right time, from maintenance to training services. For instance, in Mexico, Emerson has installed 35,000 Fisher valves, for which the company offers five service centers across the country, including a brand new office in Toluca. The proximity of the locations that we have established allows us to address a customer inquiry in the first 24 hours. Moving forward, I do not think that the company will deviate much from this strategy, as it will remain relevant in the upcoming years, even with the changes that the reforms are bringing about.
Q: What are the highlights of Emerson’s participation in helping PEMEX improving its production levels?
A: With the help of its technical staff, Emerson has carried out a number of initiatives to transfer the lessons learned from mature projects to emerging ones. In Mexico, one of these initiatives consisted of highlighting the importance of measuring key well parameters, such as pressure, temperature and level flows, as it was found that they were being neglected during the operation of Mexican fields. For this initiative, Emerson implemented the instrumentation and organized training to ensure that the variables were properly interpreted, helping to improve the operation of the wells. In the national industry, it is well known that there is a high content of water associated with the oil being extracted from mature fields. For this reason, Emerson provided the equipment and training solutions for measuring water content, allowing PEMEX to react accordingly to the values that are identified in a particular well. In this sense, Emerson is not only utilizing technological solutions, but it is using a transformational approach to educating engineers in the field in terms of pressure, water content, density, and other parameters, ensuring that those variables are always met with the appropriate action.
Exclusive interview with Vernon Murray, Vice President and General Manager of Emerson Mexico and Northern Latin America.
This is an exclusive preview of the 2016 edition of Mexico Oil & Gas Review. If you want to get all the information, plus other relevant insights regarding this industry, pre-order your copy of Mexico Oil & Gas Review 2016.
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