As I mentioned in a previous column, SPE’s Board of Directors and management review and update SPE’s strategic plan. This is a periodic exercise aimed at defining the strategic orientations that will enable us to better meet the expectations of members and the needs of the industry in the next 3 to 5 years. The current strategic plan was developed in 2017/2018 after three very challenging years for industry, our members, academia and PES. Since then, the industry has seen even more challenges and changes than ever before. The world we live in is not the same. The SPE strategic plan to be developed must take these issues into account and give SPE a solid foundation to better meet the needs of our members in the future using a financially sustainable model.
For more than 30 years, SPE’s main source of income has been events. Although SPE has rapidly ramped up virtual programming in 2020, this has not compensated for in-person events such as the Offshore Technology Conference, Offshore Europe and the International Petroleum Technology Conference.
This graph (developed from SPE’s financial data) shows that from fiscal year 2010 (April 2009 to March 2010), SPE relied on events for at least 70% of its revenue. It also shows how event revenue is used not only to pay for events, but also publications (advertising has dropped dramatically) and member programs and services. The chart for revenue categories breaks down event revenue into exhibit/corporate sponsorship (the majority) and registration for comparison with membership fees and all other revenue streams.
Dues are only about 15% of SPE revenue, except during the FY2021 pandemic. FY2022 was closer to the typical pre-COVID percentage, and forecasts for FY2023 and FY 2024 should be the same.
Therefore, we need to review and diversify PES revenue sources. This may mean new programs and services, markets, membership categories, etc. As our traditional sources of revenue evolve, they must be supplemented if we are to maintain or even add new services.
During the period from July to August, we have put in place a plan for the development of the updated strategic plan which involves interviews with different stakeholders of PES, including leaders of companies in the sector and a sample representative of members, students and universities, regional and technical sections. , as well as quasi-members (who participate in Society events without being members). A channel is being created on SPE Connect to allow individual members to provide feedback on topics related to the strategic plan. We will be posting thoughtful discussion topics to gain insight from members. If you are unfamiliar with SPE Connect, please log in and join the discussion. We look forward to hearing from our members on the future of our Society.
As always, I welcome your feedback at [email protected]