Here is the script that BCG is using to help make us better.
https://www.bcg.com/publications/2024/can-upstream-energy-companies-maintain-reduced-costs
With the new model, the company was able to achieve close to a 40% reduction in onsite staff and an annual savings of more than $100 million across four assets.
Just for kicks make sure to have a cardboard box in your office as a reminder! Its all in the details.
EY, BCG or name that consultant group, will always look at cutting IT first for lower cost geographies. So buckle up people, not going to go well if you look at our competitors.
Previous commenter, you haven't read the article and are still truong to compare apes to oranges. The company referenced in the article with a 40% staff reduction identified an area for cost cutting and 40% was achieved in that area. Read the article.
Have you worked or managed offshore assets? Regulations dictate minimum staffing levels and many companies are at those levels. The production we just sold at URSA were some of our lowest cost oil in the portfolio. The mistakes we make are trying to run our onshore assets mimicking offshore models. Ops Excellence originated by following our DPC operations. Best to look at onshore independents as a template. A 40% reduction in staffing is spot on.
Context is important. The 40% comment is in reference to a company that obviously has offshore assets. Specifically the reference is regarding "staff of its floating production storage and offloading vessels". The article further explains an opening of an onshore center to support those functions. Probably those employees were paid very high dollar.
The 40% in the sibject line doesn't apply to COP at all.
Excellent. I’ll start packing my office and making some calls.