Study shows aligned operations teams have lower OPEX and lifting costs

Study shows aligned operations teams have lower OPEX and lifting costs®

EZ Ops most recent oil and gas operations workforce study shows that aligned goals and effective communications across operations teams leads to better company performance including lower OPEX and lifting costs.

The study included a survey of head office, middle management and field operations team members where individuals were asked how they each define good performance and the hurdles they face? Survey responses were compared with company performance data to identify what workforce conditions correlate with top performance for producers, and where stronger data and communications can provide the most value.

Three study findings hold real value for operations leaders.

1. Companies that have lower OPEX and lifting costs also have more aligned teams.

The study asked three levels of operations users (frontline, management and head office) to answer a standard set of questions about their personal performance goals and obstacles. 

Where companies had consistent, or nearly consistent, answers across three levels of the organization there was a correlation with highly efficient operations including lower OPEX and lifting costs. The producer that had the highest alignment score (70%) also had the lowest OPEX.

Conversely, where study responses were highly inconsistent between three levels of operations, performance obstacles emerged. The top two identified are below.

2. Where there’s an expectation gap between the field frontline and operations middle management, performance is lower.

Where frontline operations teams and middle managers had inconsistent study responses on performance goals, those companies had lower efficiency including higher OPEX.

Drilling in, there’s a common expectation gap within operations teams where frontline workers are prioritizing finishing the tasks on their plate (often biased to nearest location or simplest task), but middle management expect daily activity to be driven by a bigger picture sense of cost efficiency overall (High production / Low cost / Environmental and Safety goals).

At the root of the issue is inadequate useful data – 40% of the middle managers participating in the study felt that they don’t have enough data to make the best decision. With even less meaningful data available to the frontline, field teams are using their own judgement on priorities, even at risk of being out of alignment with cost efficient / high production goals.

3. Information gaps run to the top: head office is missing transparent information on field operations.

Around 70% of the head office study respondents saw miscommunication as a major hurdle. 

They felt like they were missing important information to be in the loop of the field operations.

Combining the findings, the operations workforce study shows the opportunity to resolve information gaps across operations teams to improve company performance including reducing OPEX, and achieving goals for production and ESG.

How can operations teams get aligned? Consider aligned compliance management

Technology like EZ Ops provides data access and connected communications across operations teams. Consider how ESG compliance management and inspection monitoring could work across head office, management and with frontline workers.

Head office: Are we being diligent in managing compliance risk?  

If inspection data is not routinely captured and reported, that can lead to audit failures of penalties. When audits or incidents occur, it can be time consuming and stressful to gather historical records for response. 

EZ Insights report to head office which inspections are completed, upcoming or overdue with the ability to drill in on details. Head office can see risk is being well managed and has the means to rapidly prove diligence in the event of failure or audit without extra manpower cost to investigate.

EZ Insights – Inspections completed, upcoming and overdue

Middle managers: Is my field compliant?

Operations middle managers want visibility into which inspections are upcoming to stay on top of compliance management. They also need rapid access to accurate data to complete audits.

EZ Ops equips managers to identify inspections that are upcoming and overdue to best prioritize activity and manage teams. Detailed data on inspections equip middle managers to quickly complete audits and respond rapidly to any failure claims.

EZ Insights – Is my field compliant? Inspections overdue.

Frontline field workers: what inspections do I need to do, and where?

Operators are spending too much time each day sifting through information to determine how they should best use their time, which risks missing timely inspections. 

EZ Ops guides frontline workers on what inspections are most urgent, by location with detail on inspection type and data to capture. Field operations teams are equipped to complete inspections on time, with accurate data and taking less time in their day.

EZ Insights – What inspections do I need to do and where?

Whether your operations team is managing compliance, assessing efficiency of field activity and equipment maintenance, optimizing chemical injection rates or pigging, head office, middle management and the field frontline each need access to select data to take the right action.

Aligned Compliance Management

EZ Ops was developed to provide operations teams with one platform to consolidate data, inform decisions, and help prioritize tasks for optimal company performance. We equip operations executives, managers and the field frontline to focus on the top priorities for action to produce the cleanest and most profitable hydrocarbons in the world.

EZ Ops has helped companies that generate 10% of Canadian production to reduce OPEX by more than 15% and lead in ESG performance. If you want to learn more about our latest study or the value we could deliver for you, let’s talk.