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The recent boom in North America energy production, specifically in unconventional oil and gas, has generated a great deal of interest and excitement.
This paper explores the need for a new operating model to effectively manage cost and other challenges from unconventional production. It also defines specific internal and supplier capabilities that oil and gas companies will need to efficiently support the growing volume of activity driven by unconventional fuels production.
Unconventional oil and gas production refers to the extraction of hydrocarbons from sources such as oil sands, coal bed methane, shale/tight oil and gas, and pre-salt geological formations. Among these sources the greatest growth is coming from shale deposits where large amounts of oil, also referred to as tight oil, and gas are being produced.
High performance in unconventional production is contingent on the ability of oil and gas operators to cost-effectively produce oil and gas products. More than ever before, logistics will play a key role in the execution of these strategies. The attainment of needed logistics capabilities is a complex journey that takes time, commitment and financial investment.
With a new manufacturing operating model in place, oil and gas operators hold the potential to experience the following benefits:
Pierre J. Mawet is a managing director in Accenture’s Management Consulting practice. Pierre has partnered with many of the largest oil field service providers and global energy companies to design and implement supply chain strategies and operational improvement initiatives. Pierre is based in Dallas.
Bob Gosier is a senior manager in Accenture’s Resources group. He has an extensive background in logistics operations and has worked with many leading oil and gas producers and service companies supporting logistics improvements.
November 5, 2013
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