The Bakken continues to be a high-production basin, although pipeline capacity constraints are limiting profitability. How are you maintaining an edge in this highly competitive space? What actions are you taking to improve your gross margin?
The Bakken Study is a strong analytical tool for targeting actionable opportunities to improve effective and consistent production delivery, enhance well performance, and optimize costs of your Williston Basin Bakken production operations. The study leverages Solomon’s proprietary Comparative Performance Analysis™ (CPA™) methodology to provide a comprehensive assessment of your field’s competitive position and a data-driven improvement roadmap.
Leverage insight from the world’s largest upstream, detailed field-level operations database, with data on more than 6,000 oil and gas fields worldwide (4,700 onshore and 1,300 offshore).
To optimize your profitability improvement opportunities, the Bakken Study benchmarks your production operations performance through the lens of cost optimization and uptime/reliability improvement. The study allows you to go beyond unit cost metrics with Solomon’s proprietary cost normalization model (Figure 1.).
Our experts help you identify key cost drivers and areas of underperformance for each asset type, including rotating equipment, turnarounds, and well failure modes (both from surface equipment & sub-surface issues). This detailed approach facilitates a deeper understanding of the cost drivers in your Bakken operations, enabling better management of cash flow and margins.
Figure 1. Upstream Cost Performance Analysis
Your production operations performance data is analyzed and compared to other Bakken operators, using a specific set of key performance indicators (KPIs), to pinpoint your strengths, weaknesses, and areas for improvement. Join the study and gain valuable insights into critical KPIs such as, well-level production efficiency, well-level production reliability, operating cost, cost drivers, well servicing, and a view of gas processing and rental compression costs. This provides you with a complete picture of your Field Operating/LOE Optimization efforts to allow you to make prioritized, valuable decisions that improve profitability.
Solomon does a great job at normalizing the data of a field. The study is an excellent fit with our strategic intents of operational excellence and cost reduction. We have already seen significant cost savings. OPERATIONS LEADER, INDEPENDENT PRODUCER
We have found Solomon studies to be of benefit in assessing our competitive performance and identifying performance gaps. The deliverables provide a solid basis for setting short- and long-term performance targets and for monitoring our progress in closing performance gaps. INDEPENDENT PRODUCER
Why Participate?
Compare performance with leading Bakken operators
Measure well delivery and production efficiency
Benchmark uptime reliability metrics against peers
Use data trends to identify potential cost optimization opportunities
Discover and prioritize improvement opportunities with the highest impact
Better understand operations performance and cost drivers
Performance is assessed across the following areas:
Production Efficiency
Reliability & Uptime
Total Field Operating Cost
Well Servicing & Workover
Field Labor & Staffing
Surface Repair & Maintenance
Energy
Chemicals
Saltwater Disposal
Study Deliverables
Performance indicators and rankings for key areas of analysis: Production Efficiency & Reliability, Field Operating Cost, Carbon Emissions, and Safety
Economic gap analysis versus top-performing peers, and identification of key underperforming areas & supporting highly performing areas
On-site presentation and discussion of study results and recommendations
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Learn How You Can Participate
The objective of the Bakken Study is to identify actionable opportunities to help you improve production efficiency, reduce costs, and enhance production. Each client receives customized focused performance feedback to provide the greatest impact for improved resource management, future financial improvement, and enhanced competitiveness. Join other operators that rely on our proprietary methodologies to improve performance and become a Williston Basin Bakken leader.
A Foundation for Effective Comparative Performance Analysis and Decision Support
We prioritize the integrity and confidentiality of participant-submitted data and rigorously review that data before benchmarking begins. Then, we employ our normalization process and benchmarking methodology to provide valuable and trusted peer group comparisons that deliver meaningful KPIs. Finally, our staff of senior consultants apply their deep industry experience to develop practical insight and recommendations to enable your success.
FREQUENTLY ASKED QUESTIONS (FAQ)
A: The Bakken Study is a third-party Comparative Performance Analysis that uses proprietary data, methodologies and KPIs to compare and assess the operational performance of Bakken Williston Basin operators’ production performance relative to peers to enhance operations performance and lower costs in the medium- and long-term.
A: In addition to a detailed analysis of basin operations, participants receive: measures of average well productivity and employee productivity, identification and ranking of reliability issues that result in production losses, diagnostics for using cost performance signals by cost category, including water handling, compression, and artificial lift, an evaluation of the costs of compressor rentals and compressor fuel gas utilization in their shale operations, and an analysis of direct and indirect support costs.
A: The study scope includes the operations of wells from subsurface to wellhead equipment, surface gathering and processing facilities/equipment, in-field flowlines/pipelines, and the field general administration that directly supports the above operations. This is a field Operations Expense Cost study and does not cover Drilling and Completions (F&D costs) directly.
A: The Bakken Study reviews are an “asset-to-asset” comparison considering the complexity associated to each asset using normalization factors.
A: Solomon’s key approach for cost normalization is to define relationships among cost drivers related to each cost category. Solomon normalization models are developed for each cost category and each peer group. The normalized assessment works to pinpoint performance gaps between the asset and peer group leaders and discover potential cost optimization opportunities in every major category.
A: The typical study takes about 6 months to complete.
A: Field Operations, Maintenance Engineering, Well Servicing Operations, Finance, Human Resources, and Asset Management.
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