Field-level production operations study identifies cost optimization, production efficiency, and GHG reduction opportunities.
Improving production operations efficiency has never been more important than it is in today’s operating environment. Unfortunately, it is difficult to identify which areas offer the greatest potential for cost reduction and whether field operations are operating at maximum efficiency and uptime.
To address these issues, the Permian Basin Operational Performance Analysis (Permian Basin Study) goes beyond public data traditionally used to benchmark drilling and completions performance to highlight operational efficiency, cost reduction opportunities, and safety and environmental performance. Many participants leverage large operational cost savings while concurrently boosting production performance.
The study uses proprietary Comparative Performance Analysis™ (CPA™) methodologies and key performance indicators (KPIs) to compare the operational performance of basin operators. Each client receives customized, focused performance feedback to provide the greatest impact for improved resource management, future financial improvement, and enhanced competitiveness.
- Planned and unplanned production efficiency
- Breakdown of loss categories compared to peers
- Reliability KPIs
- Analysis of both competitive (unit) and normalized costs across operating expense (OpEx) categories
- Recommended maintenance expenditures to balance cost savings and reliability
- Compression analysis including utilization, cost per horsepower, and rental versus ownership
- Staffing level and cost analysis including cost per person, staff per supervisor, and staffing levels achieving maximum reliability performance
- Energy usage including costs, intensities, and normalized performance
- Chemical expenditure comparison
- Well servicing and workover cost analysis
- Artificial lift failure rate comparison
- Saltwater disposal cost per barrel, both company-operated and third party
- Support and overhead (General and Administrative [G&A]) analysis for staffing levels and costs
- Health, safety, and environment (HSE) performance, including personal and process safety
- Carbon emission calculations comparing intensities, normalized performance, and source compositions
Join other operators that rely on our proprietary methodologies to improve performance and become a Permian basin leader.
Learn More & How You Can Participate
Solomon's 2020 Permian Basin Study identified the following cost improvement opportunities:
savings identified in total field operating costs annually
million USD identified in uptime/production efficiency
- Compare performance with leading operators
- Identify areas of operational strength
- Discover improvement opportunities
- Better understand operations performance and cost drivers
In addition to a detailed analysis of basin operations, participants receive:
- Measures of average well and employee productivity
- Identification and ranking of reliability issues that result in production losses
- Evaluation of the cost of compressor rentals and compressor fuel gas utilization
- Analysis of direct and indirect support costs
- Identification of key under-performing areas, enabling teams to focus on appropriate solutions to optimize costs and maximize production
- Best practices and recommendations to improve performance
- Summary presentation with actionable insight supported by study data
Closing Performance Gaps
What gaps do you struggle to close? What quick and near-term actions will have the biggest impact on performance excellence and profitability? We know what good looks like… and how to get there.
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.
Additional Studies & Analysis
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!