$60 bbl is the new norm – do you want help in getting your costs down?
At the beginning of the year there was fear as the oil price was in freefall, however it seems to have steadied between $50 and $60. We are now well into 2015 and after the initial panic it seems the industry is adapting. We have been here before. The old timers will recall the hard times 3 or 4 times in their Career. The good news is it doesn’t take long for us to remember how to manage when times are tough.
Initially, we focus on compulsory spending only. Everybody gets tough on the cash budget. Authority limits are reduced - everything goes upstairs for signing. The Organisation slows down.
After a while there is a realisation that costs are not reducing fast enough and everybody is getting frustrated with the bureaucracy. Reserves are being depleted faster than new discoveries. It’s not sustainable.
Wells have to be drilled faster. Everybody remembers that the last time this happened Toyota Lean Principles were applied to drilling through variants of Technical Limit. This discipline had been relaxed when times were fat.
This is where rp-squared comes in. We work with you to embed these principles. We work with you on improving your processes and organisation to release this money.
This is done through a combination of short workshops (such as DWOP’s, AAR’s etc.) and longer office and site coaching programmes.
$15M savings identified from 2 workshops
Our last two workshops, one in the North Sea and One in Mozambique have identified between $13M and $15M savings.
This is not all we have a 15 year track record supported by a plethora of testimonials from our Customers.
Can you afford not to use us!!
A number of people have joined rp-squared and in the next newsletter we will introduce them to you.