Oil and Gas: Achieve cost reductions, improve productivity and enhance shareholder returns
Location-based analysis is being used by oil and gas companies to manage uncertainty and shape a more resilient and sustainable future.
Driving Improved Operational Efficiencies
Each company operating in the oil & gas industry faces its own unique operational challenges as it responds to factors such as regulation which affect the industry as a whole. Despite these uncertainties the requirement to achieve cost reductions, to improve productivity and to enhance shareholder returns is paramount. The response to such pressures has included:
- Outsourcing E & P activity to joint venture consortia to spread the costs of finding new fields
- Taking stakes in smaller E & P companies
- Divestment of refinery capacity
- Increased focus on trading contracts to meet long term commitments at the required price
Interestingly all of these activities rely on having high quality data to quantify and manage risks and a large proportion of the data needed to manage these processes effectively is spatial, eg:
- Where are stakes owned?
- What benefits, costs and liabilities have been assumed at a given location?
- Which companies are responsible for each site?
Maintain Competitiveness in the Industry
Similarly integration of an Esri geo-database with tools such as Play Fairway Mapping enables:
- Planning and analysis to be focused on those opportunities with the greatest potential
- Account to be taken of source rocks, seal rocks and trapping mechanisms to profile potential fields.
- Project risk to be set against expected yields
Understanding the drivers behind operational efficiency and the options to improve productivity is vital to reduce costs and remain competitive, particularly if resources are limited.
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