Driving operational performance in oil and gas

I s i t t i m e f o r a s hi f t i n f o cu s ?
T he o i l an d g as i n d u s t ry , p art i cu l arl y t he u p s t re am s e ct o r, has b e e n s l o w t o ad ap t t o chan g i n g e x p e ct at i o n s an d
therefore has failed to reap the benefits available through a systematic focus on operations.
I n t he p as t 10 y e ars , e x p l o rat i o n has s hi f t e d i n t o m o re co m p l e x an d re m o t e b as i n s , n e w l y d e v e l o p e d t e chn o l o g i e s
hav e b e e n i n t ro d u ce d an d re g u l at i o n s hav e b e e n rap i d l y e v o l v i n g i n an e x p an d i n g g l o b al e n v i ro n m e n t . Mai n t ai n i n g
a s o ci al l i ce n s e t o o p e rat e , w hi l e achi e v i n g co n s i s t e n t re t u rn s o n i n v e s t m e n t s , has n e v e r b e e n m o re co m p l i cat e d
or difficult. The next 10 years show even more tightening in these areas and an impending loss of experience and
talent through retirement. These fundamental shifts in the industry indicate that the time is indeed now to make
f u n d am e n t al , s u s t ai n ab l e i m p ro v e m e n t s t o o p e rat i o n s t hro u g h i n t e g rat e d o p e rat i o n al e x ce l l e n ce p ro g ram s .
The programs identified in our industry examination show that there is willingness and desire to improve operating
performance, specifically reliability, efficiency, cost and HSE. However, the same examination highlighted that few
existing operational excellence programs adequately address all four of those factors and, despite these efforts,
o p e rat i n g p e rf o rm an ce i n t he i n d u s t ry has b e e n s t e ad i l y d e cl i n i n g , e v e n b e f o re t he s harp d ro p i n o i l p ri ce . I n
addition, stakeholders are demanding more consistent returns and improved HSE performance across assets.
C ommu nities,
non-governmental
organizations and
mu nicipalities are
applying pressure for
exploration companies
to ensu re risk mitigation
and minimization
practices are in place.
Shareholders are
investing in exploration
companies that can
consistently deliver
results and minimize
profit fluctuations in
the heavily cyclical oil
and gas industry.
A new generation of
employees expects
organizational stability
and gravitates toward
organizations that can
offer stable employment
with opportunities for
advancement.
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