Upstream Services - Operating Expense Reduction
“There must be a better approach to cost reduction than ‘slash and burn’.”
“Is there a way to significantly cut costs and still realize efficiency gains?”
“How do I hold my people accountable for operational expenses when they insist
runaway costs are beyond their control?”
For more than 28 years The Marshall-Teichert Group has helped oil and gas clients address operating expense control in different economic climates, realizing expense reduction of 8 to 17 percent, with performance gains of 5 to 8 percent in base well production. Further, the ROI for this type of effort has been as high as 10:1.
Prior to implementing Operating Expense Control, our clients felt caught in the squeeze between vendor prices and commodity prices. But they gained control of their costs and so can you.
Here are examples of what they are reporting today…
- Reduction in operational expenses between 8 and 17 percent
- Reduction in salt water disposal costs of 6 to 14 percent
- Reduction in hot oil treatment costs of 24 percent
- Reduction in open AFEs of 51 percent
- Reduction in lease operator routes using route optimization tools and software
“I now have the timely information needed to run my area like a business.”
This is what foremen, superintendents, managers and VPs are saying, and here is how we helped them transform the way they manage operational costs:
- Timely visibility over costs and accruals
- Rigorous expense tracking, reporting and review
- Accountability for holding to budgets
- Operators run their routes like it was their own business
- P Card control
- Process improvements and elimination of waste
- Vendor management, collaboration and use of digital invoicing software
- A “Market Basket” to track vendor price changes and determine true OpEx control
A disciplined Execution Control SystemSM and Sustainability process ensure continued program effectiveness. We pride ourselves on our reputation for working with clients to deliver sustainable change. We won’t do it to you or for you, but with you, ensuring ownership and lasting improvement.
