A recent survey by The Economist Intelligence Unit pointed out, “companies that master the emerging discipline of big data management can reap significant rewards and separate themselves from their competitors.” So, how do Oil & Gas operators produce more at a lower cost in such a volatile market? Companies must shift focus to their internal playbooks and create efficiency gains and cost reductions to fight their way through volatile prices and foreign production.
Proven Ways Leading Operators Produce More at a Lower Cost
This can be achieved with today’s data driven technology which allows information to be distributed to every node of the organization enabling the right decisions, at the right time where they count. As a result, outdated methods of hand-drawn spreadsheets, paper notes, and phone calls to the head office from the field are being replaced with digital technology which addresses well profitability at the source.
The latest dashboard technologies allow users to evaluate assets for actual oil and gas production versus forecast, lifting cost per barrel, rig NPT (non – productive time) and any scheduled or unscheduled downtime in an intuitive and simple manner. The results can be segmented by top or bottom performing assets, expense categories, and by multiple hierarchies (operational, cost center, etc). Furthermore, expenses can drill down to the invoice level allowing for actionable insights.
So how does a COO produce more at a lower cost?
One example of success shows a very large E&P company achieving its corporate goal of cutting its downtime in half by focusing on the greatest downtime categories. By getting pumpers access to these insights, they were able to focus on immediate corrective actions allowing the company to reach its downtime reduction goal.
In yet another example, a production engineer was able to identify and stop over $40,000 in duplicate invoices in just one month, simply by drilling down to the invoice level to determine what had already been paid. Taking that story further, the company has posted between 2% – 6% reductions in operational expenses each of the last three quarters by enabling many such field successes. If each engineer had just one such occurrence throughout the year, this alone could save the company about one million dollars.
Achieve agile operational excellence and discipline.
By employing and utilizing intuitive new technology which keeps the company moving in the same direction while enabling actionable insights across the organization, COOs can set aggressive goals and lead their companies to achieve the operational excellence.
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