Strategic alliancing has a long history in the upstream business from the days when major corporations worked together in particular regions of the globe.

Although the underlying principles remain valid, the scope and diversity of today's relationships have increased markedly in response to changes in the market place, and the changing nature of the competitive environment. The traditional alliances have been augmented by relationships between companies and suppliers and by alliances focused on enhancing collective capability in the development of technology.

It is interesting to evaluate the factors that influence the development of a successful relationship and those that can lead to strain. The traditionally competitive and conservative nature of upstream behavior means that it is intrinsically difficult to develop a successful alliance.

AAPG Search and Discovery Article #90928©1999 AAPG Annual Convention, San Antonio, Texas