Permian Basin Study

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.

The Permian Basin Study benchmarking report provides clients feedback and insight on the following findings:

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.

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Learn More & How You Can Participate

Obtain a clear picture of your competitive position with data-driven, actionable insight.

Download the Study Invitation

Solomon's 2020 Permian Basin Study identified the following cost improvement opportunities:

35%

savings identified in total field operating costs annually

21

million USD identified in uptime/production efficiency

Why Participate?

Compare performance with leading operators
Identify areas of operational strength
Discover improvement opportunities
Better understand operations performance and cost drivers

Study Deliverables

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.

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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.

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