Oil Field Services
Oil and Gas, Oil Field ServicesThe Booming OFS Industry
The world onshore drilling rig market is set to expand from an estimated 9700 rigs today to more than 11000 units by 2016. Growth is driven by an increasing volume and complexity of well requirements in order to meet global production targets. Rising global production targets and the increasing complexity of well requirements are likely to be key drivers of rig demand over the forecast period. Companies in the Oil & Gas Field Services (OFS) Industry support oil and gas field operations on a contract basis. The oil industry is easily influenced by economic and political conditions. Many industry experts prominently believe that rather than analyzing energy companies, we should just focus on predicting the trend in energy prices. A strong correlation between the performance of energy companies and the commodity price for energy has been evident today.
Rig Utilization
An important factor that determines supply is the rig utilization rates; its close relationship to oil prices is not a coincidence. Higher utilization rates mean more revenue and profits. For drilling companies, it is important to take a close look at the company’s rig fleet, because older rigs lack the ability to drill in remote locations or to bore deep holes. Some other factors to consider are the depth of water that the offshore rigs can drill in, hole depth and horsepower. Higher quality rigs will have higher utilization rates, especially during weak periods. This leads to higher revenue growth. Sometimes this is a double-edged sword; while higher utilization is better, a company that is at its capacity will have difficulty increasing revenues further.
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Variance Analysis
- Is there a way to identify the variance between bid hours and actual hours?
- How do we address the discrepancy in bid and actual hours effectively?
- Can we ensure that our operations consistently and reliably follow our plan?
- What is the best way to present information in order to make critical business decisions?
- Our variance dashboard solution provides more operational visibility and quick understanding of the variance in bid and actual hours thus ensuring that we can provide up-to-date status of rigs thus enabling in better planning , scheduling and utilization of rigs
- Also easy drill down is enabled to investigate the impact of different Contributors such as Rig Group and Position Types on variance over the selected period
Rig Fleet Management
Companies in the Oil & Gas Field Services (OFS) Industry support oil and gas field operations on a contract basis. The oil industry is easily influenced by economic and political conditions. Many industry experts prominently believe that rather than analyzing energy companies, we should just focus on predicting the trend in energy prices. A strong correlation between the performance of energy companies and the commodity price for energy has been evident today.
Rig Fleet Deployment
- How is our Rig fleet performance across the globe? Can we track operating, non-operating, billing and non-billing Billing rigs?
- Are the rigs utilized to near full capacity? What strategies can be adopted to increase rig utilization rates and maximize reserve recovery?
- How to ensure optimal safety and closely monitor rigs in high natural hazard zones? Can the NATHAN world map of natural hazards be leveraged for this purpose?
- For each rig, how could we facilitate rig contract performance standards?
- Will timely alerts for contracts nearing expiration along with the rigs technical specifications enable managers to initiate pre-qualification phase for evaluating potential contractors and assessing their ability to execute contract-specific activities?
- How bottlenecks do we face in our rig operations management processes, and how much is their cost impact?
- Can real time operational information such as the utilization rate, revenue, operating days and billing days enable effective supervision and monitoring ?
Rig Fleet Operations
- How can we optimize drilling operations to increase productivity and production rates? What is the average drilling depth and man hours for onshore and offshore rigs across different locations and regions?
- What steps can we undertake to maximize reliability and performance by reducing breakdowns and minimizing production down times?
- How can we analyze factors, ranging from the individual components to the overall asset, its operating conditions, complexity and the effectiveness of its maintenance regime to attain optimum reliability?
- How can we ensure asset integrity by preventing unplanned structural failures and hydrocarbon releases resulting in major incidents?
- How can we monitor and promote process safety indicator framework (four tier framework) within the enterprise?
- Are our Management of Change (MOC) programs and processes in compliance with OSHA regulations? How can we improve the efficiency of these processes by reducing cycle time and eliminating workflow issues?
Rig Fleet Financial Management
- How has our operational revenue and profit grown? Are we meeting our target forecasts? What additional steps need to be taken?
- How can we reduce operational and maintenance cost and increase operating profit? Can we restructure/refine our business processes by identifying elements contributing to this factor?
- Can we analyze contract revenues by location to drive operating profit?
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Looking to implement a robust operations analytics solution for oil and gas but don’t know where to start?
