About the Book
Delves into the core and functional areas in the upstream oil and gas industry covering a wide range of operations and processes
Oil and gas exploration and production (E&P) activities are costly, risky and technology-intensive. With the rise in global demand for oil and fast depletion of easy reserves, the search for oil is directed to more difficult areas – deepwater, arctic region, hostile terrains; and future production is expected to come from increasingly difficult reserves – deeper horizon, low quality crude. All these are making E&P activities even more challenging in terms of operations, technology, cost and risk. Therefore, it is necessary to use scarce resources judiciously and optimize strategies, cost and capital, and improve business performance in all spheres of E&P business.
Optimization and Business Improvement Studies in Upstream Oil and Gas Industry contains eleven real-life optimization and business improvement studies that delve into the core E&P activities and functional areas covering a wide range of operations and processes. It uses various quantitative and qualitative techniques, such as Linear Programing, Queuing theory, Critical Path Analysis, Economic analysis, Best Practices Benchmark, Business Process Simplification etc. to optimize
Productivity of drilling operations
Controllable rig time loss
Deepwater exploration strategy
Rig move time and activity schedule
Offshore supply vessel fleet size
Supply chain management system
Strategic workforce and human resource productivity
Base oil price for a country
Standardize consumption of materials
Develop uniform safety standards for offshore installations
Improve organizational efficiency through business process simplification
The book will be of immense interest to practicing managers, professionals and employees at all levels/ disciplines in oil and gas industry. It will also be useful to academicians, scholars, educational institutes, energy research institutes, and consultants dealing with oil and gas. The work can be used as a practical guide to upstream professionals and students in petroleum engineering programs.
Table of Contents:
Preface xv
About the Author xvii
Acknowledgments xviii
1 Optimization and Business Improvement Studies in Upstream Oil and Gas Industry: An Overview 1
1.1 Introduction, 1
1.2 E&P Activities and Processes, 2
1.3 Need for Optimization in Upstream Industry, 3
1.4 Importance of Creativity and Data Usability for Business Performance Improvement, 4
1.5 Overview of the Book, 5
Review Exercises, 8
References, 8
Further Reading, 9
2 Optimizing Productivity of Drilling Operations 11
2.1 Introduction, 11
2.2 A Brief Note on Drilling Operation and Cost, 12
2.3 Objectives, 15
2.4 Key Observations and Findings, 16
2.5 Human Factors, 21
2.6 Organizational Factors, 25
2.7 Technical Factors, 28
2.8 Benefits and Savings Potential, 32
2.9 Limitations of the Study and Scope for Further Work, 33
2.10 Conclusion, 33
Review Exercises, 35
References and Useful Links, 35
Further Reading, 36
3 A Diagnostic Approach to Optimize Controllable Rig Time Loss 37
3.1 Introduction, 37
3.2 Rig Time Loss and Nonproductive Drilling Time, 38
3.3 Objectives, 39
3.4 Observations, 39
3.5 Waiting on Materials, 42
3.6 Waiting on Decisions, 45
3.7 Waiting on Logging, 46
3.8 Equipment Repair Downtime, 49
3.9 Other Shutdown, 53
3.10 Waiting on Weather, 55
3.11 Conclusion and Scope for Improvement, 57
Review Exercises, 59
References, 59
Further Reading, 59
4 Optimizing G&G Strategies for Deepwater Oil and Gas Exploration 61
4.1 Introduction, 61
4.2 Objectives, 62
4.3 Methodology, 63
4.4 Optimization of G&G Evaluation Time in Deepwater Wells, 65
4.5 Economics of Acquiring LWD for Own Deepwater Rig, 70
4.6 Improve Accuracy of Geological Predictions, 73
4.7 Effect on Downhole Complications due to Variation in formation Pressure, 75
4.8 Slippage in Well Completion Time of Deepwater Wells, 78
4.9 Influence of People’s Factors on the Success of Deepwater Exploration, 80
4.10 Benefits, 81
4.11 Limitations of the Study and Scope for Improvement, 81
4.12 Conclusion, 82
Review Exercises, 83
Further Reading, 84
5 Optimization of Offshore Supply Vessel Fleet Size Using Queuing Theory 85
5.1 Introduction and Background of the Problem, 85
5.2 Objectives, 86
5.3 Waiting Line Model: A Brief Note, 87
5.4 Formulation of the Model, 91
5.5 Results, 93
5.6 Limitations of the Model and Scope for Further Work, 96
5.7 Conclusion, 98
Review Exercises, 99
Appendices, 100
References, 101
Further Reading, 101
6 Standardizing Consumption of HSD, Cement, and Chemicals in Oil/Gas Wells and Rigs 103
6.1 Introduction, 103
6.2 Objectives, 104
6.3 Methodology, 104
6.4 Standardization of HSD Consumption, 105
6.5 Standardization of Oil Well Cement Consumption, 117
6.6 Standardization of Chemical Consumption, 124
6.7 Benefits and Scope for Improvement, 131
6.8 Conclusions, 132
Review Exercises, 134
Appendix, 135
Reference, 135
Further Reading, 135
7 Optimizing Rig Move Time and Activity Schedule Using Critical Path Analysis 137
7.2 Objectives, 139
7.3 A Brief Note on Network Analysis Using PERT/CPM, 139
7.4 Development of Network Analysis Model, 141
7.5 Results and Discussions, 145
7.6 Probability of Completion of Project on Time, 146
7.7 Crashing of Activity and Project Completion Time, 148
7.8 Suggestions, 150
7.9 Limitations of the Study and Scope for Further Work, 151
7.10 Conclusions, 153
Review Exercises, 154
Appendices, 155
References and Useful Links, 165
Further Reading, 165
8 Developing Uniform Standards for Emergency Alarm System and Indicators for Offshore Oil and Gas Installations 167
8.1 Introduction, 167
8.2 Objectives, 168
8.3 Methodology, 169
8.4 Observations, 169
8.5 Deep Dive and Findings, 170
8.6 Recommendations, 173
8.7 Conclusions, 174
Review Exercises, 175
Appendices, 176
References and Useful Links, 180
9 Optimizing Supply Chain Management System of an E&P Company 181
9.1 Introduction, 181
9.2 The Evolution of SCM, 182
9.3 Objectives, 185
9.4 SCM System, 186
9.5 Procurement Group, 188
9.6 Materials Management Group, 200
9.7 SCM Support Group, 206
9.8 Benefits, 209
9.9 The Scope for Further Work, 210
9.10 Conclusions, 211
Review Exercises, 213
References and Useful Links, 213
Further Reading, 214
10 Manpower Optimization and Strategic Workforce Planning 215
10.1 Introduction, 215
10.2 Objectives, 216
10.3 Manpower Planning and Optimization Process, 217
10.4 Methods of Manpower Demand Forecasting, 218
10.5 Other Key Issues in Manpower Planning, 221
10.6 Introduction of Multiskilling and Multidisciplinary Approach, 222
10.7 Rationalization of Disciplines, Trades, and Categories, 225
10.8 A Case Study on Manpower Optimization, 229
10.9 Conclusion, 244
Review Exercises, 246
Appendices, 247
Further Reading, 262
11 Improving Organizational Efficiency through Business Process Simplification 263
11.1 Introduction, 263
11.2 Objectives, 264
11.3 Differences between Business Process Simplification and Business Process Redesign/Reengineering, 265
11.4 Identify Opportunities for Business Process Simplification, 267
11.5 Business Process Simplification: Some Real]Life Examples, 267
11.6 Suggestions for Improvement, 281
11.7 Scope for Further Work, 282
11.8 Conclusion, 283
Review Exercises, 283
References, 284
Further Reading, 284
12 Optimization of Base Oil Price Using Linear Programming 287
12.1 Introduction, 287
12.2 Objectives, 291
12.3 A Brief Note on LP, 292
12.4 Formulation of the Model, 294
12.5 Model Calibration and Execution, 301
12.6 Results, 302
12.7 Limitations of the Model and Scope for Further Work, 308
12.8 Conclusions, 308
Review Exercises, 309
Appendices, 310
References and Useful Links, 313
Index 315
About the Author :
Sanjib Chowdhury is working in a major oil company and has over thirty years of experience in cross-functional areas of Strategic and Corporate Planning, Optimization and Business Improvement, HR and General Management in Upstream sector. He has held responsible positions and carried out many impressive work and studies in these areas – this book is a testimony of that. He holds B.Tech, M.Tech., and Ph.D. degrees in Industrial Engineering & Management all from Indian Institute of Technology, Kharagpur and published several technical papers in journals of repute.
