Survey reveals operational excellence is delivering results for oil and gas companies
Petrotechnics’ survey reveals operational excellence (OE) has passed the tipping point in the oil, gas and petrochemical industries and has become the new normal for a majority of companies.
Survey findings from Petrotechnics reveal operational excellence (OE) remains central to firms’ enterprise-wide strategies and is now delivering tangible results. Nearly all (95%) respondents agree OE requires everyone "From the boardroom to the frontline, to consistently make the most effective operational decisions." Around 60% of respondents said OE has become more important in the last 12 months compared to 80% in the previous year—meaning OE has become the new normal.
Scott Lehmann, VP product management and marketing at Petrotechnics said, "The last year was a significant phase in the evolution of operational excellence. 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 oil prices have stabilized, 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."
Firms leading the way are beginning to see tangible results. For 16%, OE initiatives are delivering a return on investment, and for 10%, it is embedded in the way they work. A commitment to enterprise-wide implementation can achieve valuable rewards, including improved maintenance optimization (36%) and reduced operational and major accident hazard risk exposure (33%).
While industry leaders are delivering return on investment (ROI), there remains a huge opportunity for many more firms to follow suit. Nearly half of respondents (44%) say OE is a priority and should be the way they run their business—while 20% state "Much more needs to be done." When implementing OE initiatives, workplace culture is the single biggest challenge according to 60% of respondents, followed by leadership and management (40%).
Lehmann said, "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."
Nearly half of respondents say senior leadership is the most engaged with OE initiatives in their organizations. Last year, 92% agreed, "Technology is an enabler for delivering sustainable Operational Excellence in the hazardous industries." That sentiment continues this year, with 73% agreeing, more specifically, "Digitization helps accelerate the ability to deliver sustainable operational excellence."
Mr. Lehmann concluded, "Digital leaders have paved the way for the rest of the industry to follow. They have proved the value of operational excellence, and they have demonstrated the power of technology – including its ability to enhance OE frameworks and deliver long-term rewards."
Click here to download the company’s survey findings.