Project Synopsis
A major North American oil company has pioneered a new production region and has doubled production there in one year. They have plans to triple output over the next 10 years. Based on this aggressive plan, their share price became one of the best performers in the industry. In order to meet their production goal, management wanted to undertake an operational transformation of the upstream division to reduce their cost per unit by 30%. Management asked McKinsey to help lead a site-wide program to reduce costs and increase productivity in all areas.