Operational excellence delivers ROI in oil and gas industry: Petrotechnics

OEThe 2017 survey reveals that oil and gas industry is transiting to fully realise OE’s benefits. (Image source: 127071/Pixabay)In a recent survey finding, Petrotechnics, developer of the operational excellence software for the hazardous industries, has revealed that operational excellence (OE) remains central to firms’ enterprise-wide strategies and now delivers tangible results

According to the company, nearly 95 per cent respondents agreed that operational excellence requires everyone “from the boardroom to the frontline, to consistently make the most effective operational decisions.”

Around 60 per cent of respondents said that OE has become more important in the last 12 months compared to 80 per cent in the previous year, indicating that OE has become the new normal.

Scott Lehmann, vice-president for product management and marketing at Petrotechnics, said, “The last year was a significant phase in the evolution of OE. It proved its worth in volatile times. The turbulent oil price put operations to the test, and many companies, to their own surprise, weathered the storm.”

“Now that the price has stabilised, firms can focus on applying the same OE measures more widely to even greater effect. Indeed, operational excellence has emerged from the confines of OE departments to become the new enterprise-wide norm,” Lehmann added.

For 16 per cent, OE initiatives are delivering a return on investment, and for 10 per cent, it is embedded in the way they work. The report has stated that a commitment to enterprise-wide implementation may achieve valuable rewards, including improved maintenance optimisation (36 per cent) and reduced operational and major accident hazard risk exposure (33 per cent).

While industry leaders are delivering ROI, there remains a huge opportunity for many more firms to follow suit, said the report. About 44 per cent of the respondents said that OE is a priority and should be the way they run their business, while 20 per cent stated that much more needs to be done.

Lehmann noted, “OE initiatives require major change across the entire enterprise, affecting numerous roles and the way many individuals work. Inevitably, there will be resistance to change. Management holds a vital role in leading teams through the transition.”

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