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Petroleum Asset eXcellence (PAX)

Unlock the full value of your oil and gas assets

Back to How we help clients

Petroleum Asset eXcellence (PAX)

Unlock the full value of your oil and gas assets

McKinsey experience shows that if Oil and Gas operators maximize the production efficiency of their assets, they can boost net present value by 30% and reduce lifting costs by up to 50% within a year. However, capturing the full value of oil and gas assets requires a new approach. Petroleum Asset eXcellence (PAX) focuses exclusively on working with operators to sustainably unlock the maximum value of their assets.

We leverage our extensive expertise, deep industry experience, and proprietary tools tested in numerous engagements to create reliable solutions for realizing production and efficiency improvements for companies in the oil and gas industry.

By the numbers

20+

years’ experience implementing operational change

50

fields globally spanning multiple operator types

~200

Oil & Gas transformations since 2010

Our approach

We support clients every step of the way, delivering lasting transformational change:

Diagnostic

Our tools assess well performance and organizational health, and benchmark the results against performance data from industry peers.

Planning

Our team of experts identify the improvement levers with the greatest potential impact and develop a roadmap to implement quick wins and long-term changes.

Delivery

We work with our clients to execute on a roadmap of initiatives and build capabilities into their organization to achieve the maximum impact of each lever.

PAX helps organizations achieve impact across four key areas:

Equipment availability

Reduce non-productive time by 15%, cut operation costs by 30%, and achieve 97% availability by leveraging lean efficiency strategies and a big data approach to condition-based maintenance.

Well and reservoir production

Assess each well’s production potential, increase recovery factors by 10%, and identify the minimum investment options to achieve true capacity (~15% increase in production).

Digital Analytics

Leverage technological advances (big data, advanced analytics) to improve operational performance, enabling organizations to use digital capabilities as competitive advantage.

Spend reduction

Set activity-based cost targets for all main spend drivers and apply supply chain toolkit to reduce 3rd party spending by 30%.

Our impact

>45% increase in production

for a Southeast Asian oil company by implementing targeted well interventions, reducing non-productive time from 19% to 14%

€20M bottom line impact

on a 1st quartile European refinery by challenging storage tank maintenance practices, reducing quality giveaways and optimizing daily operations

$200 million in early savings

for a national oil company through frontline process improvements, system simplifications, and cost efficiency initiatives

What makes us different

World-class diagnostics

We offer McKinsey’s global knowledge and industry-leading tools that have been tested in thousands of transformations, as well as the most comprehensive library of reference cases and benchmarks in the industry.

Transformative approach

PAX doesn’t just provide advice; we partner with the client from diagnosis to implementation, building capabilities, systematically transferring knowledge, and improving organizational health.

World-class talent

Our experts collectively have 700 years of first-hand industry experience delivering impact along the entire value chain.

Partnership model

We partner with our clients using a results-based model, to achieve a tailored set of outcomes.

Meet our people

The PAX team is composed of over 250 internal experts with deep experience and powerful track records in the world’s leading Oil and Gas operating and service companies.

Our leadership

Expert Associate Partner, PAX, Melbourne

Graham MacGregor

Serves oil and gas clients from the perspective of a former industry executive, helping boost business performance through production growth and operations transformation

Expert Associate Partner, PAX, Oslo

Hege Nordahl

Works with leaders in the oil and gas industry on their strategic and operational agenda, helping oil and gas companies close performance gaps and unlock the full value of their portfolio and assets

Partner, PAX, Singapore

Andy Thain

Leads our Petroleum Asset Excellence (PAX) work in Asia, bringing over 25 years of experience in global operations and project-leadership, gained internationally in technical and executive roles within the industry

Partner, PAX, Amsterdam

Otto van der Molen

Helps oil and gas clients achieve high-impact performance transformations in operations excellence, lean, capability building, facility reliability, cost optimization, well and reservoir management, and contracting and procurement

Expert Associate Partner, PAX, London

Francesco Verre

Works with oil and gas company executives to turn around the performance of their assets through operational excellence, production optimization, cost efficiency, and organization-transformational efforts

Working with us

Blog post

A petroleum engineer at McKinsey?!

– Absolutely. Read about Marie’s journey from the oil & gas industry to McKinsey’s Petroleum Asset eXcellence New Venture.
Blog post

Petroleum Asset eXcellence at McKinsey

– Petroleum specialist Andrey joined our Bucharest office a little less than a year ago and has been inspired by his colleagues and clients.

Find your fit with PAX