Drilling Operations Transformation

Challenge: Capital expenditures for the annual drilling program were running $100MM over budget. Days to drill new wells, the proxy for cost, had risen dramatically over prior years. The Drilling organization had experienced significant turnover with forced organizational changes due to labor shortages and hiring challenges.

OUR ANALYSIS FOUND

Identified opportunity to reduce Spud-to-Rig-Release Cycle Time from an average of 31.3 to 24.5 days

Processes not being utilized effectively especially stage gates and discrete hand-offs

Processes were no longer standard and not clearly defined across functions given the recent organizational changes

Absence of clearly defined Roles and Responsibilities for each role and a RACI to serve as a guide for executing on the overall process

Lack of continuity across Planning, Engineering and Field Drilling Operations groups

Gaps in processes and clear roles & responsibilities were key contributors in not adequately addressing downtime, NPT and Flat Time

Implementation

Facilitated the design and validation of Vision and Objectives for the Drilling function. Developed new Drilling organization structure aligned to updated and redefined Roles and Responsibilities

Organizational Effectiveness

Created position descriptions with KPIs, competencies and skills for each role

Organizational Effectiveness

Installed a process to manage continuous improvement experiments for control and for implementation standardization

Operations Excellence & Innovation

Reviewed and redefined meetings to facilitate more rigorous management control, consolidated meetings

MOS

Developed standard Construction activities across all Drilling areas

Construction

Provided training and coaching in new Roles and Responsibilities for the new, cohesive process, across all Field disciplines

Training & Development and Leadership Development

CLIENT SUCCESS

Results of our engagement include:

Reduced Spud-to-Rig Release by 8.3 days per well

Cumulative implementation ROI 16.9X

Annualized implementation ROI 36.7X

Achieved a 22.9 day C/T average at the end of the project

“I thought you were coming in here to tell me how to drill a well. You came in and showed me how to organize my Drilling functions, recognize and control my variables, and rally everyone around teamwork!”

VP Drilling

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