Driving operational performance in oil and gas

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We identified three main reasons why companies first introduced an operational excellence program:
To improve HSE performance,
typically following an HSE
incident. Companies that had
not experienced an HSE incident
introdu ced an operational
excellence program in response
to high-profile HSE incidents in
the industry.
To improve financial and
operating performance, with
a focu s on redu cing costs and
closing the performance gap
relative to peers.
As part of a wider corporate
transformation program or a
shift in strategic direction.
Six most common operational excellence focus areas
8 0 % 8 0 %
7 3 % 6 0 % 2 0 % 1 3 %
E x p an s i v e
as s e t re l i ab i l i t y
E x p an s i v e
p ro d u ct i o n
efficiency
Man ag e m e n t
of HSE risk
O p e rat i n g co s t
re d u ct i o n
F o cu s o n
cu l t u re
E m p l o y e e
re t e n t i o n
F ou r main ou tcomes of companies u sing O E programs
$
Improved HSE metrics
4 3 %
C o m p an i e s re p o rt e d d e cl i n e s
i n b o t h t he t o t al re co rd ab l e
i n j u ry / i n ci d e n t rat e an d d ay s -
away-from-work incidents for
e m p l o y e e s an d co n t ract o rs . T w o
co m p an i e s achi e v e d t he i r b e s t -
e v e r re s u l t s o n s p i l l an d p e rs o n al
s af e t y m e as u re s .
C ost savings
4 3 %
C o s t s av i n g s i n cl u d e d achi e v i n g
re d u ct i o n s i n t o t al o p e rat i n g
co s t s as w e l l as i n are as s u ch as
w e l l d ri l l i n g co s t s . T he m aj o ri t y
re p o rt e d t hat t he y d e l i v e re d o n
co s t re d u ct i o n t arg e t s ahe ad o f
s che d u l e .
I mproved asset u ptime/
availability
2 9 %
O i l an d g as co m p an i e s w i t h O E
p ro g ram s re p o rt e d i m p ro v e d
as s e t u p t i m e o r av ai l ab i l i t y .
T w o co m p an i e s had t arg e t e d
top-quartile performance in
as s e t av ai l ab i l i t y .
I ncreased oil/ gas
produ ction
2 9 %
T he i n cre as e d as s e t u p t i m e m ay
be linked to the increased oil and
g as p ro d u ct i o n achi e v e d i n 29 %
o f O E p ro g ram s .
Driving operational performance in oil and gas |
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