Driving operational performance in oil and gas

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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. 1 4
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Page 1 and 2: Driving operational performance in
Page 3 and 4: 1 E x e cu t i v e s u m m ary T he
Page 5 and 6: I n d u s t ry o b j e ct i v e s O
Page 7 and 8: Low oil prices highlight the effect
Page 9 and 10: T he an at o m y o f o p e rat i o
Page 11 and 12: W K e y o p e rat i o n al e x ce l
Page 13 and 14: m m m O p e rat i o n al e x ce l l
Page 15: 1 2 3 We identified three main reas
Page 19 and 20: m 3. Supplier and contractor manage

Driving operational performance in oil and gas

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