Survey: Operational Excellence Key to Oil, Gas Company Success
Eighty-two percent of oil, gas and petrochemical professionals believe operational excellence is ‘very important’ to the success of their businesses, according to Petrotechnics’ latest Operational Excellence index.
The most common drivers behind the push towards operational excellence include the need to achieve greater cost efficiencies and reduce operational and major accident risk, according to Petrotechnics, a developer of software for operational excellence. Fifty-eight percent of survey respondents said operational performance was their primary goal, while 40 percent said their main objective was boosting health, safety and environmental (HSE) performance and reducing operating costs.
Ninety-two percent of respondents see technology as an enabler for delivering sustainable operational excellence in hazardous industries, Petrotechnics reported in a Sept. 26 press statement. In a separate report on the survey findings, Petrotechnics said that technology would not replace skilled, knowledgeable or experienced people, but help workers to make the best possible decisions with available evidence.
Petrotechnics told Rigzone that 51 percent of oil and gas companies currently are investing in asset performance management technology to achieve operational excellence. Petrotechnics also reported that companies are currently investing in:
- EHS software (47%)
- Data analytics (47%)
- Enterprise resource planning software (44%)
- Uncertain (10%)
- Had no technology in place (1%)
To address future needs, 21 percent of survey respondents said they planned to invest in data analytics. The respondents also planned to invest in:
- Industrial Internet of Things (22%)
- Operational risk management (21%)
- Secure cloud computing (19%)
- 3D visualization (19%)
- Uncertain (7%)
- Not planning future investment (1%)
A January 2016 Ernst & Young report defines operational excellence as an element of organizational leadership that stresses how a variety of principles, systems and tools can be applied toward the sustainable improvement of key performance metrics. This concept is not new. But E&Y believes the current oil price downturn offers the oil and gas industry a chance to achieve operational excellence.
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