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Shareholders’ calls for higher returns from unconventional fuels investments are getting louder. There is a growing need for exploration and production (E&P) and oilfield services (OFS) companies that can handle quick-paced changes in resources, venues and priorities with almost military-like precision.
This paper discusses how E&P and OFS companies can respond to increased pressure from shareholders by managing short, but highly effective, project life cycles through the adoption of a factory mode of operating focused on three key capabilities.
In less than a decade, North American oil and gas production has changed dramatically. Estimates of technically recoverable hydrocarbon reserves have risen fast enough to spawn what might be termed a “21st century black gold rush.”
Exploration and production and oilfield services companies have strived to deal with these changes, which also include rapid shifts in venues and resource availability, such as moving from gas-rich shale plays to oil-rich shale plays.
This highlights a growing need for energy companies that can manage short, but highly effective, project life cycles by getting into a site quickly, getting the oil out quickly and getting to the next well quickly.
Accenture believes that both E&P and OFS companies need to move toward a factory mode of operation, combining high levels of insight and innovation with factory-like parameters, such as standardization, integration and metrics-driven decision making.
The three capabilities that support such a factory mode of operation include:
Pierre J. Mawet is a managing director in Accenture’s Management Consulting practice. Pierre has partnered with many of the largest oilfield service providers and global energy companies to design and implement supply chain strategies and operational improvement initiatives. Pierre is based in Dallas.
Matthew C. Geiger is a Manager in Accenture’s Management Consulting practice. Matthew has worked with leading oilfield service providers and global chemical companies on designing and implementing distribution network strategies and operational excellence initiatives. Matthew is based in Pittsburgh.
John H. Nichols is a Consultant in Accenture’s Management Consulting practice. John has worked with leading companies in the energy industry on supply chain strategy, operating model design and field materials management. John is based in Atlanta.
Shaun Lehman is a Consultant in Accenture’s Management Consulting Operations Practice. Shaun has helped oilfield service providers and material distributors to optimize delivery models, improve field materials management and implement other effective supply chain strategies. Shaun is based in Los Angeles.
November 5, 2013
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