Occidental’s Digital Transformation Roadmap
The oil and gas industry has always been fertile ground for operational excellence. But with new technologies such as AI challenging long-held certainties, how can leaders leverage the new opportunities in a business environment that is becoming more complex?
As a speaker at our upcoming Operational Excellence in Oil & Gas Summit, we sat down with Jody L. Garcia, Surface Operations Director at Occidental Petroleum Corporation to gain his perspective on project identification for immediate savings without sacrificing long term performance, how Occidental is leveraging technology, and fostering a collaborative culture amid market volatility.
Isobel Singh, Event Director: Jody, can you tell us a bit about your role as Surface Operations Director and its scope?
Jody Garcia: My responsibility is to help run our day-to-day surface operations. This encompasses everything that isn't subsurface – from producing wells to our facilities, satellites, batteries, and injection systems. It also includes maintaining all the pumps, vessels, tanks, and other equipment associated with production and, increasingly, emissions management.
Isobel Singh, Event Director: Given the current market volatility, how are you prioritizing which projects to focus on to drive operational excellence?
Jody Garcia: That’s always a challenge, even more so now with fluctuating oil prices. The first thing we focus on is identifying projects that can provide immediate savings and value, without sacrificing long-term performance or eroding value over the next one to three years.
In addition to that, a significant challenge is managing and incorporating new technology without delay. We can't afford to be set back from others who might be more aggressive or ahead in technology adoption. So, it's about balancing immediate benefits with continued innovation.
Isobel Singh, Event Director: When you talk about sustainable savings, what exactly do you mean, and how do you ensure projects don't negatively impact future production?
Jody Garcia: It's about getting your team to focus on continuous, sustainable savings. For example, it's easy to cut chemical costs today and save money, but in a year or two, you might see increased equipment failures that end up costing more. So, we strive to ensure that our decisions today are right for the business long-term. We want improvements that are genuinely sustainable.
Isobel Singh, Event Director: How does managing risk factor into selecting and prioritizing these operational excellence projects? How do you assess the risk profile of different activities?
Jody Garcia: We focus on analyzing failures and their potential impact, as well as the negative impact failures can have on our employees. Most teams don't want to fail, and it's hard for people to make decisions they know might create equipment failures or more work long-term.
That’s why we emphasize continuous improvement. For instance, machine learning is something we're really pushing to install on our equipment. We see it as a sustainable improvement that will help us make better decisions and increase equipment run life. A key challenge, however, is helping teams understand and embrace new technology, and defining what people's roles will look like in the future as technology takes on more tasks. We still absolutely need people; their roles just evolve
Isobel Singh, Event Director: What role does technology, particularly AI and machine learning, play in helping you select and prioritize projects?
Jody Garcia: Technology is changing incredibly fast right now, especially with AI and machine learning. I truly believe companies that can't figure out how to work with it and accept it are going to get left behind. The amount of analysis these tools can provide is amazing, helping people make better decisions and even closing the experience gap for those who don't have decades in the industry.
For prioritization, we continually examine our high-cost items and business drivers, trying to leverage technology around them. Sometimes, the technology itself reveals something else impacting your business that you weren't aware of. AI, for example, processes raw data without bias, giving you unfiltered analysis. We have to learn to embrace this, accept what the data tells us, and make better decisions moving forward. User adoption is also a huge consideration; AI can make good employees great, enabling them to do more, but we have to define what that looks like for leaders and staff.
Isobel Singh, Event Director: Beyond the core technology itself, what are the biggest risks you see with technology implementation, specifically regarding user adoption and an over-reliance on new systems?
Jody Garcia: One concern is that technology can become obsolete very quickly. In our industry, given the scale, you can barely fully incorporate a new system before something changes. There's also the risk that people won't be adequately trained or knowledgeable enough, meaning that if automation goes down, they might not know how to operate manually. It's crucial to understand this risk and still teach people the fundamental workings of equipment.
Another significant risk is that teams can get so excited about technology that they lose sight of day-to-day operations. As leaders, we must maintain that balance. Until new processes are fully integrated and workflows change, you still have to ensure facilities are running optimally, wells are pumping correctly, and equipment isn't failing. Many AI and machine learning solutions also require months, sometimes years, of data to be effective, so the immediate benefit might not be there. It's easy to get too focused on future tech and neglect current operational needs.
Isobel Singh, Event Director: How do you think a collaborative culture can aid in pinpointing and mitigating operational risks?
Jody Garcia: I see a collaborative culture as a fundamental strength; it helps us focus on continuous improvement and inherently manage risk. When you lack a collaborative culture, that is the risk, because you're not evolving, challenging assumptions, or striving to do better.
In essence, there's good and bad in everything, and it's about finding that balance. Our teams need to be aware of the pros and cons of every decision, taking both a macro and micro view. Sometimes, what's best for an individual well or a specific failure might not be what's best for the overall asset or portfolio. A collaborative culture helps ensure these broader impacts are understood.
Isobel Singh, Event Director: As someone uniquely placed in your position, how do you ensure strong lines of communication from frontline workers to office-based staff to senior leadership setting strategies?
Jody Garcia: Communication is probably the hardest thing in any organization, regardless of your level. It sounds easy – emails, calls – but getting the message through effectively is tough.
I try to provide frequent updates, including monthly reports on goals, safety concerns, and acknowledging team achievements. It’s important to spend time with frontline leads and managers, helping them understand why we're pursuing certain goals. If possible, I try to check in with individual contributors – the "boots on the ground" – to ensure they're hearing and understanding the same message. Based on their feedback, we then tweak the message as needed.
One effective technique is to ask people at the end of a presentation, "What did you hear?" Everyone interprets messages differently, and this helps us refine our communication. Keep it simple: aim for two to three maximum bullet points people should leave with, not twenty. And when managing up to executives, ensure they understand your plan, strategy, where the teams are, and the realistic timeline for implementation, especially in large organizations. It takes time to "route the ship" and see changes.
Isobel Singh, Event Director: Finally, Jody, what are you most looking forward to at the upcoming Operational Excellence in Oil and Gas summit?
Jody Garcia: I'm genuinely looking forward to hearing what other people in the industry are doing. I haven't attended many summits recently, and it's always good to learn about new practices, what others are focusing on, and even to hear about shared challenges. There's so much good work happening, and it's a great opportunity to network, build connections, and help each other – and the industry – get better. I'm especially curious about what medium and smaller-sized companies are doing, as that's often where you see some of the most innovative solutions being deployed, and also about corporate governance policies around AI.
Join Jody alongside Chevron and Suncor Energy on Day 2 of the Operational Excellence in Oil & Gas Summit as they discuss "Empowering Frontline Workers and Building Trust in Decision-Making". To this session and the full 3 day event, download the Event Guide here.
