Leading energy consultancy firm updates global benchmarking study to analyze onshore assets results.
HOUSTON – October 24, 2017 – HSB Solomon Associates, LLC (Solomon) herewith announces the launch of its Worldwide Onshore Production Operations Performance Analysis (Onshore Study) for 2018 (using the operating year 2017 and 2016 operating data). This multi-client benchmarking initiative (initiated in 2016 using 2015 and 2014 operating data) assesses onshore asset performance of similar operations within a given region and globally. This study will be conducted on a biennial basis. Study results will allow participants to compare onshore assets from many regions of the world within peer asset groups.
Solomon Upstream has conducted numerous onshore benchmarking studies over the last 20 years for a large number of producing operators, including national oil companies (NOCs). During this timeframe, the company has assessed more than 3,700 onshore assets in 29 different countries. Utilizing the patented normalization methodologies pioneered by HSB Solomon Associates LLC (Solomon), the world leader in downstream and midstream operational performance benchmarking, Solomon Upstream adapted the methodologies that enhance peer-to-peer asset performance comparisons for the upstream segment to augment traditional “in-basin” peer group comparisons. The normalization methodology levels the playing field when it comes to the size and complexity of each onshore asset, providing an alternative method for identifying realistic improvement opportunities.
Operating costs and production maximization (uptime reliability) are primary aspects of production operations performance to be assessed. As such, Solomon Upstream has established a number of metrics for these components that are critical to onshore success. The current, suppressed oil price means production uptime is important to maximize revenue. Meanwhile, strong cost inflation during the last few years means optimizing operational expenditures (OpEx) is important to maintaining margin and cash flow. Efficient OpEx performance is critical in sustaining a competitive edge during periods of crude price instability.
In addition to analyzing significant cost drivers for the various production systems, the Onshore Study will provide a valuable competitive perspective and consolidated company-level performance for tracking companies’ regional and global onshore OpEx and production efficiency.
Participation will enable clients to drive the performance of their onshore operations to higher levels of excellence and establish their companies’ competitive position among onshore operators.