Identify cost optimization and production loss reduction opportunities to achieve sustainable onshore operational performance.
Low-cost, efficient operators are more likely to survive in the long run. Price volatility will always be with us and higher oil prices can’t be expected to persist. Companies that want to thrive, or even survive, in a tough business environment marked by greater investor and Environmental, Social, and Governance (ESG) scrutiny, skills shortages and inflation, must be vigilant.
Our experience and data show that there are often large opportunities to improve operating efficiency and costs. Do you know where your performance gaps exist against the best in the industry? A peer comparison sheds light on where you stand and what improvement opportunities exist.
We got far more than what we expected. I would recommend this process to any company wanting to move to 'best of class. OPERATIONS MANAGER, INDEPENDENT PRODUCER
The study typically identifies benefits more than 10 times study fees. Leverage a vetted, proprietary performance database of: >3,700 onshore production and processing facilities from 40+ countries, including the major production hubs such as, US Shale, Western Canada, the Middle East, Southeast Asia, and Australia.
- How do your performance gaps compare against top-industry performers?
- What is an achievable performance improvement target considering your operational characteristics?
- What financial resources are needed to achieve top operational performance?
- Where are your fields on their energy efficiency journey?
- How do your scheduled and unscheduled downtimes, and rate reductions due to reliability and maintenance, issues compare to peers?
- How effective are your corporate, site, and unit sustainability strategies?
The Worldwide Onshore Production Operations Performance Analysis (Onshore Study) uses Solomon’s proprietary Comparative Performance Analysis™ (CPA™) to compare the operational performance of onshore operators around the world. The study uses a range of key performance indicators (KPIs) and normalized cost and efficiency models to optimize onshore operations and cost management strategies.
Onshore Study Focus Areas
A major challenge of benchmarking is to compare assets with common core characteristics that affect operating costs, such as type of recovery (primary, secondary, and enhanced oil recovery [EOR]), watercut, acid gas content, or use of compression. The Onshore Study compares performance against peers at the “asset-to-asset” level. Oil and gas operations are analyzed within separate peer groups. This detailed view identifies cost and production facility improvement opportunities.
Major Onshore Asset Types & Peer Groups
- Uncover areas of underperformance and identify realistic improvement opportunities
- Prioritize optimization efforts that have the greatest sustainable impact
- Identify significant cost drivers for each asset type
- Compare direct support or overhead against your peers
- Understand year-on-year cost and production performance trends for each asset and peer group
- Compare direct and indirect support costs with peers
Study participants receive the following:
- Customized diagnostic analysis, including conclusions, recommendations, and valued opportunity potential for each asset
- Specific cost targets and recommendations to achieve top level performance are presented
- Private debriefings with Solomon advisors
New Metrics that Support Emissions Strategies
Several new methodologies have been added to improve onshore operations cost and reduce emissions, including:
- Energy Intensity Index™ (EII®)
- Carbon Emissions Index (CEI)
- Operations Delivery Index
Frequently Asked Questions (FAQ)
A: The Onshore Study uses Solomon’s proprietary CPA benchmarking methodology to compare the operational performance of onshore operators around the world. The study’s goal is to help operators optimize and improve their onshore operations, enhance production efficiency, and combat the impact of volatile oil prices on operating margins.
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.
A: The onshore benchmarking reviews are an “asset-to-asset” comparison considering the complexity associated to each asset.
A: As the cost accounting systems for E&P companies worldwide differ significantly, Solomon has developed a standardized set of cost categories that are used in every benchmarking study. This important step levels the comparison of operating expenses for each asset.
A: Solomon’s key approach for cost normalization is to define relations between 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 discovers potential cost optimization opportunities in every major category.
A: The study includes assets from National Oil Companies, Integrated Oil Companies, Independents, and Joint Ventures.
A: The typical Onshore Study takes about six months to complete.
A: Field Engineering, Finance, Human Resources, Asset Management
A: The success factors that the Onshore Study uses to maximize benchmarking value are as follows: Stakeholders Commitment, Data Quality, Findings Relevance, and Opportunities Prioritization.
Learn How You Can Participate
The study’s goal is to help operators optimize and improve their onshore operations, enhance production efficiency, and combat the impact of volatile oil prices on operating margins. Join other industry operators that leverage the Onshore Study to help identify and prioritize optimization efforts, validate concerns, manage resources more effectivley, improve financial outcomes, and enhance competitiveness.
Data Quality, Benchmarking Methodology
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.
Related Solutions & Custom Peer Groups
With 30+ years of upstream benchmarking experience and the world’s largest database of upstream performance data and metrics, Solomon knows what “good” looks like for any given type of operation. The Offshore Study assesses your performance against peers and identifies cost and production improvement opportunities. The study focuses on critical KPIs, including operating cost, cost drivers, production efficiency, and uptime reliability.
If your organization is new to one of our studies or has experienced challenges completing the study data input forms, Solomon can help. Data quality and a proven benchmarking methodology enable results and insight you can trust. Contact us today!