The energy industry is quite diverse (utilities, oil and gas explorers and producers, pipelines and more) and encounters an equally diverse number of disputes. Perhaps a difference is that the capital intensity of the energy industry highlights the importance of efficiently resolving any disputes that do occur. Some observations about how the industry accomplishes this may be helpful to others that have the same goals but may yet be less skilled or experienced in achieving their ends.

Because of the capital intensity of the industry, most projects and initiatives have more than one participant. Preservation of these relationships is essential, so an often-used technique is that before any arbitration or litigation, the CEOs negotiate and introduce a broader perspective on the business impact of the dispute. A similar technique is to require that if those directly involved in the conflict cannot settle it promptly, the negotiations must be conducted by higher level executives of each party. The arrangement can also specify that those executives not be in the direct line of management authority of those who have the conflicting positions.

Originally published in DailyReportOnline.com on October 1, 2016.