An industry-wide race towards achieving construction milestones drove behaviours of increased spending. Today the focus is on implementing low cost operating models to optimise the move toward operations in a lower priced oil world.
Our recent work and subsequent research demonstrates that cost transparency is still a major issue in the upstream oil and gas industry for operators and non-operators alike. It is clear that it will be difficult to drive out costs and move to the lower cost baselines without significantly improving cost transparency in oil and gas organisations.
In this paper, we explore what lessons can be taken from organisation’s attempts to drive out sustainable costs that can be applied to upstream oil and gas as they try to move to new baselines in a low oil price environment.