The current landscape in the oil and gas sector is pressurizing players in the industry to re-evaluate their operations. Furthermore, oil and gas companies are also driven by cost-containment and sustainability challenges.
To deliver and maintain a superior level of operational excellence, it is imperative for oil and gas companies to consider some critical factors including safety, reliability, productivity, and cost optimization. These factors play a crucial role in determining the economic viability of a drilling program in a given set of market conditions. At the same time, the growing level of complexity and scrutiny in the sector is increasingly creating roadblocks for companies in the sector to extract maximum benefits from the available opportunities for revenue growth. Oil and gas companies are also faced with the challenge of altering and realign their operations with the rapidly changing market variables. These factors coupled with a cut-throat market competition are driving a renewed focus on achieving operational excellence among oil and gas operators. In this article, experts at Infiniti Research have listed out some of the key operational excellence challenges facing oil and gas companies and also defines how to avoid them.
Gaining visibility into complex operations
Some of the top oil and gas challenges include challenging work terrains, price volatility, regulatory and compliance requirements, and varying educational skills of employees. For effective cost containment and to ensure better employee performance, it is important for oil and gas companies to attain greater visibility into their operations. Adopting integrated operations can be useful in enhancing reservoir recoverability, optimization of production, and reducing safety risks in the oil and gas industry.
Dependency on third party suppliers
Even some of the biggest oil and companies rely on third party suppliers for specialist equipment and expertise relating to oil and gas supply chain. These oilfield services platforms perform critical business functions for companies in the oil and gas sector. This means that any inefficiency caused by one company can have a devastating effect. Additionally, inconsistency in collaboration and communication can slow down projects, thereby giving rise to increased inefficiency. By leveraging solutions such as cloud-based collaboration platforms, oil and gas companies can share comprehensive planning and forecasting information and also standardize their inventory management.
Employee onboarding, retention, and training
This is one of the most critical issues facing companies in the oil and gas industry. The market for good talent has become highly competitive, especially due to the growth and demand for talent in oil and gas from emerging economies like India and China. To make it worse, the growing rate of retirement of the industry’s highly experienced employees are adding further pressure. Therefore, it is essential for oil and gas companies to look for ways to retain their skilled labor through robust learning and development opportunities.