BENCHMARKING TO SET FIELD-LEVEL COST SAVINGS TARGETS AND SUCCESSFUL METHODS TO REDUCE FIELD OPERATING COSTS

Abstract

Oil and gas operators have been forced by rising investor expectations and a maturing resource base to both improve operating standards and reduce the cost of operations. During the past five years, the author's company has executed 20 studies in the US and Canada, examining the costs and methods of oil and gas operations for nearly 2,000 fields, for over 100 exploration and production companies. These studies cover more than a dozen basins from the Gulf of Mexico (Shelf and deepwater) to Alaska, including most producing basins in the US lower 48 states and Western Canada. They focus on developing an understanding of leading practices of successful operators, and identifying areas for remedial action to enhance cash flow.

The paper examines various methods operators use to identify specific high cost areas for remedial action, and detail examples of successful operations. The focus will be on cost saving opportunities and practices utilised in offshore operations (Shelf and deepwater).