The old adage rings very true, “If you are failing to plan then you are planning to fail.” Upstream oil and gas companies are focused on improving their performance; this begins with effective well planning. In this article, Bain & Company does an excellent job of articulating why these companies must plan to be successful.
May 29, 2013 Bain Brief
Picture a Friday night after work in any oil town, from Aberdeen to Calgary or Perth. Drillers and maintenance engineers recount the week’s small victories—not a few of which include boasts of heroic efforts requiring long hours of overtime to fix unexpected problems, or premium prices paid to rush parts and people to where they were urgently needed—all part of the “can do” spirit for which the oil and gas industry is famous.
While these make for good stories, this is no way to run a business. More than ever, oil and gas companies are under tremendous pressure to improve performance and reduce labor overruns due to rising production costs, maturing assets and a talent shortage. Integrated planning—which aims to avoid the urgent jobs that make for great stories—is key to achieving operational excellence. It can improve safety, prevent accidents and work stoppages, and boost the efficiency of operations and resources. Read more…