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Exploration & Production

NEEDS-BASED RESULTS

 

Exploration & Production

SITUATION

Major gas exploration and production company needed to significantly reduce operating costs by improving schedule performance and enhancing the ability to forecast and plan.

DRIVER GOAL

  • Compress the Exploration through Production cycle by 8 days (10%).

RESULT

  • Identified annualized savings of over $15,000,000.
  • Compressed the Exploration through Production cycle by 13.1 days (16.25%)
case study image, CS-165 large

Case Study

Transform Operation (Lean) & Optimize Supply Chain

Issue

A major gas exploration and production company needed to significantly reduce operating costs. The Highland Group was asked to assist with improving schedule performance, enhancing the ability to forecast and plan, and reducing lost time for major pieces of equipment.

Highland Approach

The Highland Group’s analytical professionals conducted an analysis of the operation to identify root causes of equipment failure and cost and performance improvement opportunities. Concurrent with the implementation of the targeted improvements, the team set about developing and implementing a structured management system to link high-level Driver Goals to field projects and performance and to enable the organization to maintain and build upon the gains achieved.

Actions Taken

  • Utilized Lean and Six Sigma tools to define and implement process and fleet improvements.
  • Developed and implemented a project management system that reduced overtime, complied with DOT regulations and improved the level of service. The system supported:
  • Well scheduling;
  • Resource management;
  • Performance measurement;
  • Coordination of activities;
  • Communication of status and action items;
  • Forecasting of events, resource needs, backlog amounts, and potential costs; and,
  • Evaluation of departmental performance to schedule.

Reduced overtime by

50%

while improving “rigging up” activity by twelve hours per move

Related Information

industry-based

subject matter-based

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Oil & Gas

North America

Tom is a senior project leader with over 25 years of international management consulting experience in the oil and gas, utilities, manufacturing, financial services, telecommunications, media and aerospace industries. He has served Fortune 500 and Global 2000 companies in 15 countries across North America, EMEA and Asia.