Introducing McKinsey Energy Insights' 2018 Global Operations Benchmark

Since 2014, the oil and gas industry has taken significant steps to reduce operating costs and improve efficiency. As operators continue to explore areas of opportunity, they must be able to answer these critical questions: How do my improvement initiatives compare to others, what else is remaining, and how do we sustain our efforts?

The extensive proprietary database that underpins McKinsey Energy Insights' operations benchmark will help define and capture your opportunity landscape by providing more than 20 years of exploration and production performance insight from a broad, deep set of global assets.

Truly global reach

500+ offshore assets and conventional onshore fields operated by 100+ companies spanning 40+ countries in the Americas, Europe, Middle East, Africa, and Asia Pacific, covering USD28 billion OPEX and 20mmboe/d of production. Offshore coverage includes the Gulf of Mexico, North Sea, West Africa, Malaysia, Brazil, Trinidad, and across the Middle East.

All peer groups

Asset types span all ages and complexity across the prolific producing basins, offshore and onshore. Offshore asset types range from fixed platforms to floaters, HPHT to heavy oil, start-up to late life. Operators include IOCs, NOCs, and a range of Independents.



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A quantitative assessment of performance and modular deep dives



Core quantitative benchmark    Modular deep dives
Production
  • Production efficiency ranking
  • Production losses by type
  • Stoppage analysis
Lifting costs
  • Unit cost ranking
  • Normalized Opex
  • Cost ber barrel
HSSE
  • Personal safety (TRIR)
  • Process safety (LOPC)
  • Energy intensity
Asset reliability and maintenance
  • Stoppage frequency and duration
  • Activity and effectiveness
Subsea
  • Inspection / interventions
  • Loss volumes and sources
 
Sub-surface and wells
  • Drilling cost and efficiency
  • Intervention performance
Workforce
  • Absolute / normalized FTEs
  • Business unit and asset level
Logistics
  • Aviation, vessel, and shore base
  • Cost efficiency and utilization
Procurement
  • Procurement cost efficiency
  • Category management infrastructure





“The McKinsey Energy Insights benchmark results enabled immediate action and results on the bottom line. We experienced a 10:1 return on the investment in the first year and anticipate further gains still.”

EVP, Global Independent

1000+

benchmarks delivered in the past five years


500+

assets with bottom up proprietary data


An agile and efficient approach that delivers practical insight

1. Quantify performance

  • Comparison of production efficiency and cost performance across key categories and metrics
  • Adjustments for asset size, complexity, technology, and maturity using our proprietary McKinsey Cost Intensity index (MCI)
  • Rankings by normalized cost and performance drivers

2. Identify opportunities

  • Gap to potential across critical operational areas to improve bottom line performance
  • Opportunity sizing based on trends and rankings to prioritize actions
  • Insights linked to value potential at both business unit and asset levels

3. Tailor recommendations

  • Management report and presentation highlighting: core areas of strength, prioritized improvement gaps, and specific recommendations
  • Real opportunities to learn from others through external comparisons



100+

clients served


40+

countries covered


“The benchmark was very helpful to identify core focus areas for future improvements. The transparency of the process and depth of results ensured we could instill ownership at the frontline for our improvement targets.”

Program Head, Global Operator



CASE EXAMPLES

$3bn+

Operating cost and production improvements identified through regional multi-client (15+) operations benchmark

Data collection through to results in 14 weeks supporting a rapid transition from benchmark into action

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$1.2bn+

Improvement potential identified across a Major's global portfolio through global production operations benchmark

Assessment of production cost and efficiency for all offshore operated assets

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Get in touch with our benchmarking team. 


2018 Timeline