Economies of Scale: How the Oil and Gas Industry Cuts Costs Through Replication

The EIU's report delves into the value of standardisation and effective project management for the oil and gas industry, exploring opportunities and best practices.

 

Key findings: 

  • The greatest benefits of replication are achieved when project teams approach their first project with duplication in mind. 
  • Standardisation is a long-term process and an integrated approach is crucial.  
  • The lessons that produce such gains are achieved when operating teams, contractors and owners collaborate to reduce the time to final project delivery. 
  • Firms maximise the benefits of standardisation by developing a portfolio of project templates that address common drilling scenarios.  
  • Provided projects are replicated in the same region under the same operating conditions, the compliance process can also be shortened.  
  • A key challenge to successful replication is that top talent and executive teams are often focused on larger-scale projects. 

 

Download Now

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern