Upstream Extraction

Based in Calgary, Alberta, this client operates in five core areas throughout the Western Canadian Sedimentary Basin. They are the largest conventional oil and natural gas producing income trust in North America with an average daily production of approximately 200,000 barrels of oil equivalent (BOE) per day plus probable reserves of approximately 729 million BOE. In all, there are about 24,000 wells distributed and covered by 450 operators in the field

Project Overview
PVA's Response
The Results

Project Overview

Objectives

  • Improve the overall effectiveness of the Operations Group to maximize the flow of gas
  • Manage the efficiency of the wells through better communication internally and with contractors
  • Increased levels of proactive management by the Supervisors through the use of Key Performance Indicators (KPI’s)
  • Maintaining and improving safety performance throughout the value chain

Assessment Findings

  • There were no standard operating procedures to follow when checking wells in terms of frequency, consistency among resources determining courses of action, fixing vs escalating issues, gathering information, communicating to contractors, etc
  • Operators went by experience when making readings as there were no checklists to ensure everything was checked appropriately
  • Lack of supervision of the activities performed in the field to ensure that action plans were executed and wells are in operation
  • Operators were not paying enough attention to what they are doing (i.e. fixing the wrong equipment or coming back to wells because they forgot to do things)
  • Supervisors did not have a scheduling tool that allowed them to effectively plan the activities in the field for the day
  • Supervisors generally believed that their people knew what to do and would ask when they needed help

PVA's Response

  • Installed customized Management Operating Systems (MOS) adapted to the client’s decentralized organization structure
  • Developed a problem resolution mechanism to increase involvement and engagement of employees in the field
  • Training and on-the-job performance coaching of all Supervisors and Superintendents to improve effectiveness of their management and communication skills
  • Improved the awareness to safety requirements through both vertical and horizontal communication on a daily basis
  • Provided specific daily production targets to the operators in the field
  • Increased awareness, ownership, and accountability for the attainment of the production targets across the entire organization
  • Improved reaction times to production issues and the quality of the interventions by the operators
  • Implemented a culture of continuous improvement throughout the operations and the organization

The Results

Some significant results obtained by our Client included:

  • Reduction of contractor costs
  • Reduction of the level of downtime of the production wells
  • Improvement in production levels of approximately 10% net of capital investments
  • Improvement in the level of proactive management from 3% to 39% by the field Supervisors
  • Improvement in the consistency of the daily communication on safety by the Supervisors
  • Improvement in the ownership of the production issues by the operators and the Supervisors on a daily basis
  • Improvement in the timeliness of the operators interventions to production issues

 

Gas Well Production

Gas well production grew by an additional 2,000 cubic meters over a 3 month period.

Oil Well Production

Oil well production grew by an additional 3,000 cubic meters over a 3 month period.

Volumes Processed

Throughput volume oil processing increased by 18%.

Improvement in Supervisory Activities

Long Term Work Continuation

  • A Client Coordinator was trained and certified during the PVA engagement
  • A quarterly audit program of the new Management Operating System was developed for the Coordinator
  • PVA conducted audits over 18 months to ensure compliance to the continued utilization of the Management Operating Systems
  • These Audits resulted in recommendations and action plans to further identify additional opportunities for improving operations