Technical Limit Approach
The power of goal setting
Something we all understand…
Saloon car tyre change: +/- 30 mins
…doing it for a living
Formula-1 tire change: +/- 6 seconds….
seconds
Technical Limit
“…….A term given to a point of perfection or perfect
performance, based on current levels of technology…..”
•
An Olympic record
•
No injuries at work (at home?)
•
Zero defects in a delivered vehicle
Technical Limit - Why it works
Traditional Business targets build from the bottom up.
Technical Limit pulls from perfection - CREATIVE TENSION
Teams of peers set the
Technical Limit. The
culture of the company
and it’s reaction to the
scale of the T.L. will
govern the size of the
prize identified.
Technical Limit Goal
Creating the right “tension”
Improvement [%]
“Pulls” up performance
Ac
l Im
a
tu
pr
ov
t
en
em
%
10
p
im
em
v
o
r
mpr
i
%
5
e
tp
n
e
r
ea
y
r
ye
t per
n
e
ovem
Time [years]
ar
Technical Limit - It Really Works!!!
•
Average drilling time for typical Abu Dhabi well was 36 days
•
The first Technical Limit set with existing rigs was 12 days
•
Actual time achieved over a period of a year was 18days
•
New TL set at 6.9 days, change to TL came with state of the
art rigs (new technology).
¾
Top driver
¾
Bigger pumps
¾
Offline operations abilities etc
¾
New drilling time with new rigs is now 13 days!!!
¾
63% improvement from where they started
New Generation Rig
Technical Limit – Generic Approach
1)
Determine what is your projects objective/value driver
2) Identify what usually goes wrong that prevents performance
3) Define a ‘perfect world’ where these things don’t happen
4) Determine what could be delivered in a ‘perfect world’ - The
Limit
5) Mature a plan to get as close as you can to The Limit,
challenging all “usual” practices
6) Review against The Limit during planning & execution and
move closer to The Limit
TL Perfect World Assumptions
•All people are competent and perfectly informed as to
their tasks
•All tools (incl. rig) are fit for purpose and no tools fail
•Formation pressures are known
•Drilling drilling of well depths are known
•The drilling sequence is stable
•KPIs & objectives are aligned
•All tools, materials and people are available precisely
when needed
•No late scope changes/Late scope changes are
managed
Technical Limit for ADCO, Abu Dhabi
technology resets this
goal
A Technical Limit Goal
12 days
Completion running efficency
Creating the right “tension”
“Pulls” up performance
Reduced Casing strings at surface
Drilling top hole efficency
Directional hole efficency
36 days
e
prov
m
i
5%
er ye
p
t
n
me
ar
Tool failures
2001
2002
2004
Time [years]
TL will save ADCO $200 million over 5 years
Towards Perfection,
passing excellence
“Perfection is not attainable, but by pursuing
perfection you can achieve excellence”
The setting of extreme goals is necessary for high performance
without it you will get mediocre results
Taken in isolation
Costs high
= Audit
Waste cutting, some
investment
Costs high again:
Where’s that last audit?
Costs
Here we
go again!
+5%
0
-5%
Under control.
-10%
-15%
-20%
-25%
0
Years
Copyright
5SEI 2005 ©
Energy Management Approach
Senior management
commit to programme
Costs
Initial savings
sustained
+5%
0
-5%
Step change in performance
-10%
Becomes company
culture
-15%
-20%
Investment
-25%
0
Years
3
Copyright SEI 2005 ©
Remember.....
If you do what you’ve always done….
…you’ll get what you’ve always got!
End of presentation
Back up slides
What is the goal of your project?
The Goal/Project Objective could be:
ƒ
the cheapest exploration well in deep water
ƒ
the highest producing well possible
ƒ
understanding of the reservoir impairment
ƒ
delivering proof for a certain ‘trap mechanism’ for
oil/gas
ƒ
demonstrating to a business partner that Shell is
the best choice
To Achieve the Business Objectives
Without TL
20 Rigs
With TL
16 Rigs
40 MM Saving/Year
Duration 5 Years X 40 MM
200 MM
‘Best in Class’ Characteristics
•
A supportive Management
•
Paradigm shifts
•
Multidisciplinary input
•
A personal case for change
•
Acceptance that we don’t have the best (processes not
people)
•
A hunger to learn from others
•
Acceptance that effort is required to be a record
breaker
•
Public pursuit of Technical Limit targets
Performance Curve of an Athlete
Olympics ‘92
Speed (m/s)
‘96
‘00
1.600
1.550
1.500
1.450
1.400
12
14
16
18
20
AGE (years)
22
24
26
TL - Dramatic Reductions in Time....
Gulf of Mexico - Deep Water Drilling
7
Pre DTL
For the first 4 wells >$20 million ‘saved’
Tripled the number of economic prospects
5
4
3
Post DTL
2
Fourier #2
N. Marlin #2
Serrano
Deep & S/T
Cayenne #1
Boris #1
Ariel #2
& S/T
0
Voltron #2
1
Morgus #1
Days/1000' BML
6
SHELL EXPRO WELL ENGINEERING
AVERAGE COST PER WELL 1995 - 2000
AVERAGE WELL COST (£ MILLIONS)
TOTAL DTL SAVINGS FROM 1999 TO END YEAR 2000 = £85.2 MILLION
Pre DTL
6.0
5.4
5.6
5.6
5.0
5.0
1999 DTL SAVING’S
OVER 32 WELLS = £32
MILLION
2000 DTL SAVING’S
4.6
OVER 28 WELLS = £53.2
MILLION
3.7
4.0
Post DTL
19%
2.8
3.0
24%
2.0
1.0
0.0
1995
1996
1997
1998
1999
2000
2001
18.00
17.00
DTL RESULTS OMAN
16.00
DTL
15.00
14.00
Anadrill contingency
Run 4 1/2"WWS # 2 / acidise
Set production diverter
Retrieve whipstock
13.00
Time (days)
4 1/2"Completion / Xmas tree
Roller reamer trip
12.00
Drill 6 1/8"Lateral # 2
11.00
Run whipstock, Mill window
10.00
Run 4 1/2"WWS and acid
Check trip
9.00
TLC Logging
8.00
Drill 6 1/8"Lateral # 1
7.00
Drill out shoetrack
6.00
Run and cement 7"Liner
Drill 8 1/2"Hole section
5.00
Drill shoe track
4.00
N/U Well head and BOP stack
3.00
Run and cement 9-5/8" casing
2.00
Drill 12-1/4" hole section
Rig Move and rig up
1.00
0.00
AFE
Amin 43
Amin 44
DTL Results
Oman
Amin 45
Amin 46
Amin 47
Amin 48
DTL Results ADCO
THE RESULTS
40%
35 WELLS
536
Days
Day
Based on historical data
SAVINGS
9%
35 WELLS
$8.2
MM
$