Abstract
Company experience, external benchmarking and the application of best practices all contribute to improved capital efficiency and reduced cycle time. Combining these practices with a value-driven decision structure yields a powerful methodology for advancing a business opportunity from inception through completion. Many upstream petroleum companies currently use, or are developing, this type of methodology to improve reservoir characterization and development practices.
Through direct experience in a variety of operational situations within the Gulf of Mexico, a five-step generic decision model evolved that is straightforward, intuitive and scaleable. Core to the process is the initial definition of the opportunity, assessment of value, decision-makers, deliverables and the assignment of accountability to advance the opportunity to the next decision point. The result is a customized roadmap from opportunity identification to the post-implementation evaluation of results.
Any business process change within an active production operation is likely to meet organizational resistance. Unlike previous initiatives, this process has been well received, primarily by establishing a useable plan that is developed by the individuals directly responsible for advancing the business opportunity. Returning immediate value to the participants in the form of alignment of business value with technical detail and uncertainty has also aided acceptance and use. The authors have been directly involved in a variety of applications including complicated infrastructure retrofit projects, pipeline riser repairs, owner operated and non-operated development projects, well planning and operation support activities. The majority of applications are tangible, real-world situations that all operators routinely face.
Each application contributed to the evolution of the model. Lessons learned by the authors and their peers will be presented including cases that illustrate and reinforce essential principles of the process. Conclusions, in the form of quantified financial and technical results, will also be presented.
