Abstract:
Objective In the context of the global energy transition and intensified market competition, various challenges have emerged in the traditional three-tier management model for long-distance oil and gas pipeline enterprises, including organizational rigidity and low efficiency. Consequently, there is an urgent need to explore new management models that align with the development of modern energy enterprises.
Methods This paper presents an organizational structure for long-distance oil and gas pipeline enterprises under a two-tier management model within an innovative “strategy-oriented and flat” framework that addresses the limitations of applying traditional organizational change theory in heavy-asset industries. A trinity approach encompassing “theoretical modeling, architectural reconstruction, and digital empowerment” is employed to integrate flat management theory, the three-pillar model, and process reengineering theory, alongside digital technologies such as the Industrial Internet of Things (IoT) and big data analysis. Through in-depth interviews, operational data analysis, process simulation, and other methods, a new organizational structure featuring a "front office-middle office-back office" configuration is developed to facilitate cross-tier business process reengineering. This leads to the establishment of a standardized management system encompassing 12 core business modules and 43 key processes.
Results The organizational structure under the two-tier management model has been implemented in a provincial company of China Oil & Gas Pipeline Network Corporation (PipeChina), resulting in multiple positive outcomes. Specifically, this structure has led to a lean management team, safety control capabilities enhancement at the grassroots level, and the focus of operating areas on its core business, emphasizing reduced burdens and increased efficiency. Furthermore, labor productivity has seen significant improvement, with information transmission times reduced by more than 50%, overall labor efficiency rising by 31% compared to the period before the reform, total labor productivity increasing by 21% year-on-year, and pipeline operation and maintenance costs per kilometer decreasing by 14%. Additionally, coordination capabilities in specialized areas were strengthened through the implementation of vertically integrated management, which supplemented and coordinated grassroots technical forces. As a result, there was an 87% year-on-year reduction in abnormal events related to work safety.
Conclusion The two-tier management model effectively addresses the “bureaucratic restrictions” faced by energy infrastructure enterprises through the dual mechanisms of strategic focus and digital empowerment. The proposed “strategy-organization-technology” collaborative innovation model offers a replicable solution for innovation in long-distance pipeline management, establishes a new paradigm for deepening the reform of state-owned enterprises in the energy sector, and promotes the industry’s transformation toward “intensiveness, intelligence, and resilience”.