Are you positioning your organization for long-term growth and value creation while reducing cost?

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When energy commodity prices head lower, the Oil and Gas industry traditionally ramps up efforts to reduce CapEx and OpEx spend. Costs are scrutinized from the wellsite to the back office and budgets are cut.

The trick to maximizing cost reduction and improving return on investment is to focus on making the organization work more better. That way, organizations position themselves for long-term growth, value creation and competitive advantage.

At Northshore Consulting, we recommend that our customers start by looking at three areas:

1. Optimization - Are you working smart? Over the years, we have recognized that while good data is a critical component to making good decisions, it must be delivered to the decision makers at the right time in order to improve operational efficiency. For example, not coordinating rig schedules properly can cause longer times between workover activities; and using disconnected systems and processes to report production to government entities can lead to restated production and potential fines. Two areas that provide excellent value to organizations are to review how you work and to understand whether the right data is being used to make decisions. Having a more thorough understand of both areas allows organizations to make better decisions across the board, be it where to drill a particular well or whether maintenance activities can be coordinated.

2. Innovation - Are you capitalizing on the strategic value of technology? In additional to having the right data, you need to use the right tools. As organizations grow, the technology portfolio tends to expand, leading to duplicated functionality, outdated technology and applications that are no longer used. With the advancement in cloud technology, advanced analytics and the Internet of Things, opportunities abound for every organization to rationalize and innovate to reduce CapEx and OpEx. One area that we worked with a customer recently was to leverage advanced analytics to improve field operations safety by understanding how weather patterns affect HSE incident rates at wellsites.

3. Intelligence - Are you leveraging a fractional resourcing model to keep a competitive advantage? With many companies offering early retirement or semi-retirement to senior E&P professionals, this can significantly impact the resources available to perform upstream (e.g. geoscience, petrotechnical) capabilities. Properly skilled resources still need to be available for the upstream function to operate smoothly, but the need for those individuals to be full-time employees should be reviewed. Consider using fractional resourcing to reduce cost and maintain operational efficiencies.

At Northshore Consulting, we help companies across markets achieve cost savings through optimization, innovation and intelligent solutions.

Contact us to find out how we can help you achieve your long-term growth and find your TRUE NORTH.

For more information please contact us @ sales@northshorecg.com or +18324262552.