The following article is part three in a three part series discussing upstream operating models. View part two here. At $100 oil, the most important cost for many operators was the opportunity cost of foregone barrels – this provoked great interest in basins and plays with higher IPs (e.g. Bakken, Eagle Ford) and operational excellence initiatives to speed well-delivery (e.g. Lean Production Systems, Theory of Constraints, Six Sigma, etc.). Indeed, it seemed that “Jonah” was back! :) But [Read more]
A Built-for-Purpose E&P Low-Cost Operating Model?
The following article is part two in a three part series discussing upstream operating models. View part one here. Organizational capabilities are the lifeblood of an enterprise. In the E&P sector this includes positional assets, such as acreage. The portfolio of subsurface resources is a critical piece of the puzzle, but organizational capabilities go far beyond positional assets – they also include intangible assets, such as expertise. The case of Mitchell Energy and its commercial [Read more]
Ten reasons to update your E&P operating model
The following article is part one in a three part series discussing upstream operating models. A culmination of disruptive forces have conspired together to make the case for change in the upstream oil and gas industry – reasons to adopt a new, low-cost E&P operating model. 1. Evolving Global Resource Base Enterprise operating models require a much broader set of key capabilities, some new, to accommodate our evolving understanding of the global resource base. The world needs ~60 [Read more]