3 Reasons Operational Excellence Matters Even When Oil Prices are High

As the cash comes rolling in and politicians call on producers to pump more of the black stuff, it can be easy to forget about operational excellence and continuous improvement.

But there are three good reasons that operational excellence still matters to oil and gas companies amid high oil prices:

#1: Safety

Ensuring that workers come home at the end of the day remains an important focus of oil and gas companies. Standard operating procedures can reduce safety incidents by mitigating potential hazards and ensuring that workers follow safe protocols.

Operationally excellent companies identify and manage risks, identify optimal work routines, and engage all workers in submitting ideas for continual improvement in safety processes.

#2: Maintain Production Levels

Worries about improving efficiency and lowering production costs may seem strange at a time of record profits, but when the pressure is on to deliver high production targets, you want to ensure that your equipment and facilities are operating at peak performance.

Operational excellence helps operators improve machine uptime, optimize maintenance routines, increase facility capacity, and lower maintenance and production costs.

McKinsey estimates that world class oil and gas operators have 30% lower maintenance costs than the industry average and can achieve asset reliability of up to 98%.

#3: Decarbonization

The oil and gas industry is under pressure to lower carbon emissions and pave the way for a net zero future. While many of the technical pathways to deliver net zero are still immature, operational excellence offers an effective way of quickly driving down the carbon intensity of oil and gas operations.

An efficient business is by definition a more sustainable business. By making more efficient use of energy and existing resources, and optimizing work routines, operators can deliver on their near-term carbon reduction commitments.

Interested in learning more about this topic?

The Operational Excellence in Oil & Gas Summit is the most inspiring showcase of oil and gas industry innovation in North America. Now in its 13th year, the summit brings together over 300 senior level executives to share use cases and showcase trailblazing technologies that will transform your operations.

Hear from industry titans like Shell, Equinor, Chevron, Delek and more during must-see keynote speeches this November 1-3 in Houston. Download the event agenda for more information.