Reduce usage volume and/or frequency in some cases, reducing the quantity of consumables or usage frequency can generate substantial benefits. For example, reducing the volume of chemicals injected to treat wells or optimizing vessel utilization to reduce frequency of trips can deliver opex savings. In Europe, Statoil has already achieved a 20 percent OPEX reduction through rightsizing, and reorganization. In Russia, Gazprom has reduced cost of gas production by more than 30 percent, taking advantage of its high share of Ruble-based contracts. Operational production costs in the oil and gas industry have fallen across the globe in the last couple of years, but one country has seen its opex fall faster than all the others Type your For most oil and gas companies, the aspiration for operational excellence is not new. Many have well-developed programs, codified manuals and active measurement and training—but gaps persist. One reason is that supervision ratios (between company staff and contractors) have risen from about a 1:1 ratio 20 years ago to about 1:5 today. The results, based on regional opex reduction per barrel, stated that between 2014 and 2018 the UK reduced operational production costs by 31 per cent, followed by Norway and the US with opex reductions of 19 per cent and 15 per cent, respectively.
27 Nov 2019 Oil and Gas Storage Market Procurement Intelligence Report | Increase in Supplier OPEX to Impact Procurement Spend These initiatives are seen as attempts to reduce dependence on Russia for the supply of utilities and
(UOC), measured per barrel of oil equivalent (boe).1 In 2016, UKCS total operating costs were 14% lower than in 2015, with an approximate £1.1 billion reduction in OPEX. Total oil and gas production rose by 5% to 598 million boe in 2016 compared with 571 million boe in 2015. In July 2015, the average operating expenses margin for the oil and gas industry was approximately 33%. Given the average revenue of $60 billion over the last four quarters, the average operating expense in the oil and gas sector stands at approximately $19.5 billion per company. Reduce usage volume and/or frequency in some cases, reducing the quantity of consumables or usage frequency can generate substantial benefits. For example, reducing the volume of chemicals injected to treat wells or optimizing vessel utilization to reduce frequency of trips can deliver opex savings. In Europe, Statoil has already achieved a 20 percent OPEX reduction through rightsizing, and reorganization. In Russia, Gazprom has reduced cost of gas production by more than 30 percent, taking advantage of its high share of Ruble-based contracts. Operational production costs in the oil and gas industry have fallen across the globe in the last couple of years, but one country has seen its opex fall faster than all the others Type your For most oil and gas companies, the aspiration for operational excellence is not new. Many have well-developed programs, codified manuals and active measurement and training—but gaps persist. One reason is that supervision ratios (between company staff and contractors) have risen from about a 1:1 ratio 20 years ago to about 1:5 today. The results, based on regional opex reduction per barrel, stated that between 2014 and 2018 the UK reduced operational production costs by 31 per cent, followed by Norway and the US with opex reductions of 19 per cent and 15 per cent, respectively.
OPEX reduction in the UKCS was dominated by four operators who realised 60% of the total reduction in 2016. Total OPEX for the UKCS was £7.2 billion in 2016 compared with £8.3 billion the previous year. The range of operators achieving reductions in operating cost is diverse – the top performing operators include new entrants, national oil companies, oil majors and independents.
In this e-book follow up to A Practical Guide To Capex Modelling In Oil & Gas we set out a categorisation of opex. We have also provided two industry case study examples, with worked solutions in Excel, containing some of the different types and nature of opex that you will typically model in oil and gas projects. For oil and gas executives, the need for operational excellence (OE) has never been greater. Sustaining excellence in performance requires continuous improvement and focus—so the journey is never over. Leaders at every level of the organization must continue to demonstrate their commitment and visible leadership of OE. There is no room for complacency, from the front lines all the way up to Operating cost: has the oil industry really moved the needle? Opinion 10 December 2015 Breaking the cycle? Cost efficiency in upstream oil and gas; the industry finally reversed the long trend of opex inflation? Well, yes and no. At an aggregate level, a 9% annual reduction in opex per barrel costs is admirable and in line with the
4 Mar 2016 core oil and gas operations. The impact of potential cost reductions on future pro- duction targets should be quantified and discussed.
The second biggest contributor to OpEx savings ($4.95 Million) was in the area of energy cost. New tools established the appropriate throughput balance against the energy usage in compressors, reactors, heat exchangers, and furnaces resulting in an estimated 5% to 10% energy reduction per operating unit. OPEX Group is a leading provider of data science and predictive analysis services for the oil and gas industry. We are focused on helping customers to operate safer, cleaner and more efficiently by transforming mountains of data into actionable insights. Oil and gas operational excellence is composed of several critical factors that must be managed in an integrated way to sustain a high level of operating performance. The main factors are safety, reliability, well productivity, operational efficiency, and cost optimization.
OPEX in Oil and Gas LIVE. An Oil & Gas online event that will help you Increase Business Agility and Network Intelligence Through Digitization, Virtualization,
In this e-book follow up to A Practical Guide To Capex Modelling In Oil & Gas we set out a categorisation of opex. We have also provided two industry case study examples, with worked solutions in Excel, containing some of the different types and nature of opex that you will typically model in oil and gas projects. For oil and gas executives, the need for operational excellence (OE) has never been greater. Sustaining excellence in performance requires continuous improvement and focus—so the journey is never over. Leaders at every level of the organization must continue to demonstrate their commitment and visible leadership of OE. There is no room for complacency, from the front lines all the way up to Operating cost: has the oil industry really moved the needle? Opinion 10 December 2015 Breaking the cycle? Cost efficiency in upstream oil and gas; the industry finally reversed the long trend of opex inflation? Well, yes and no. At an aggregate level, a 9% annual reduction in opex per barrel costs is admirable and in line with the (UOC), measured per barrel of oil equivalent (boe).1 In 2016, UKCS total operating costs were 14% lower than in 2015, with an approximate £1.1 billion reduction in OPEX. Total oil and gas production rose by 5% to 598 million boe in 2016 compared with 571 million boe in 2015. In July 2015, the average operating expenses margin for the oil and gas industry was approximately 33%. Given the average revenue of $60 billion over the last four quarters, the average operating expense in the oil and gas sector stands at approximately $19.5 billion per company. Reduce usage volume and/or frequency in some cases, reducing the quantity of consumables or usage frequency can generate substantial benefits. For example, reducing the volume of chemicals injected to treat wells or optimizing vessel utilization to reduce frequency of trips can deliver opex savings. In Europe, Statoil has already achieved a 20 percent OPEX reduction through rightsizing, and reorganization. In Russia, Gazprom has reduced cost of gas production by more than 30 percent, taking advantage of its high share of Ruble-based contracts.