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Global Operations Benchmark

Achieve operational excellence in offshore and onshore operations

Since 2014, the oil and gas industry has taken significant steps to reduce operating costs and improve efficiency. As operators continue to explore areas of opportunity, they must be able to answer these critical questions: How do my improvement initiatives compare to others, what else is remaining, and how do we sustain our efforts?
The extensive proprietary database that underpins Energy Insights’s operations benchmark will help define and capture your opportunity landscape by providing more than 20 years of exploration and production performance insight from a broad, deep set of global assets.

Our approach

Quantify performance

  • Comparison of production efficiency and cost performance across key categories and metrics
  • Adjustments for asset size, complexity, technology, and maturity using our proprietary McKinsey Cost Intensity index (MCI)
  • Rankings by normalized cost and performance drivers

Identify opportunities

  • Gap to potential across critical operational areas to improve bottom-line performance
  • Opportunity sizing based on trends and rankings to prioritize actions
  • Insights linked to value potential at both business-unit and asset levels

Tailor recommendations

  • Management report and presentation highlighting core areas of strength, prioritized improvement gaps, and specific recommendation
  • Real opportunities to learn from others through external comparisons

Our Benchmark

Our Operations benchmark delivers quantitative metrics around 3 core areas, with the option to add modular deep dives for a more granular understanding of your performance relative to peers.

Our difference

Global Reach

Our database offers 600+ offshore assets and conventional onshore fields of 40+ countries in the Americas, Africa, Asia-Pacific, Europe, and the Middle East, covering $33B in operating expenditure (opex) and $22M barrels of oil equivalent of production. Offshore coverage includes Brazil, Gulf of Mexico, Malaysia, the North Sea, Trinidad, West Africa, and the Middle East.

Comprehensive peer groups

Asset types span all ages and complexity across the prolific producing basins, offshore and onshore. Offshore asset types range from fixed platforms to floaters, high pressure high temperature (HPHT) to heavy oil, start-up to late life. Operators include international and national oil companies, and a range of independents.

Case examples

Greater than $3 billion operating-cost and production improvements identified

Through a regional multiclient (more than 15) operations benchmark, we advanced from data collection through to results in 14 weeks supporting a rapid transition from benchmark into action:

  • Shared results and recommendations with management and frontline asset teams
  • Facilitated peer-to-peer cross learning with site visits and targeted learning events
  • Concluded exercise with industry best-practice workshop sharing presentations combining operator and industry expert presentations

Greater than $1.2 billion improvement potential identified

Through a global production-operations benchmark, we assessed production cost and efficiency for all offshore-operated assets across a major's global portfolio:

  • Identified more than 100 specific recommendations and improvement levers across the portfolio at asset level
  • Integrated targets and asset recommendations into improvement program

Our Impact

“The McKinsey Energy Insights benchmark results enabled immediate action and results on the bottom line. We experienced a 10:1 return on the investment in the first year and anticipate further gains still.”

– Executive vice president, global independent

“The benchmark was very helpful to identify core focus areas for future improvements. The transparency of the process and depth of results ensured we could instill ownership at the frontline for our improvement targets.”

– Program head, global operator

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