For oil and gas executives, the need for operational excellence (OpEx) has never been greater. Exploration, development and production costs are rising, and refining margins are under pressure. Activity levels are also increasing, causing sector inflation. A shortage of technical talent and capability has bid up the cost of employees and services even further.
Since one in four technical professionals retire every seven years, this shortage could become even more severe. The rise of unconventional resources like shale oil also contributes to a deeper focus on OpEx — including in the Middle East. The fundamentals are the same, but unconventional plays require different processes than those in conventional extraction.
As international and national oil companies climb the learning curve on unconventional resources, successful operators are refining their approaches for these unique operating challenges.
At the same time, the oil and gas industry is under tremendous pressure to reduce risk, even as it takes on new challenges, such as drilling in ultra-deepwater or rocky formations, intensive onshore operations in populated areas, and pioneering technologies like floating liquefied natural gas (FLNG) terminals. Industry executives are working to define and deliver OpEx at the frontiers, where few benchmarks exist.
The shift to frontier sources accompanies a changing competitive landscape that requires oil and gas players to become more nimble and to compete in new roles. Source: Petrotechnics
