THOUGHTS

Major Roadblocks to Achieving Operational Excellence in the Oil and Gas Industry

Dec 17, 2019

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 some of the key operational excellence challenges facing companies and also defines how to avoid them.

Designing and executing an effective strategy requires oil and gas companies to have a clear understanding of the rapid market changes. Want more insights on how we have helped some of our top clients in the oil and gas industry achieve this? – Submit RFP.

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 industry.

Dependency on third party suppliers

Even some of the biggest oil companies rely on third-party suppliers for specialist equipment and expertise relating to the 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, companies can share comprehensive planning and forecasting information and also standardize their inventory management.

Have queries relating to your business challenges? Get in touch with an expert for detailed insights.

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 is adding further pressure. Therefore, it is essential for companies to look for ways to retain their skilled labor through robust learning and development opportunities.

Request a free brochure to learn more about Infiniti’s solutions for oil and gas companies.

We help our clients make smarter decisions to achieve rapid business growth

Our strength lies in the unrivaled diversity of our international market research teams, innovative research methodologies, and unique viewpoints that merge seamlessly to offer customized solutions for your every business requirement.

Recent Thoughts

Insights

Our knowledge hub offers exclusive access to a collection of free resources and downloadable articles that provide insights into market developments and details on how our services can benefit your business.