The Inaugural Upstream Planning Survey
A number of disruptive factors are reshaping the oil & gas industry, with the greatest impact thus far felt in North America. The Aucerna - KPMG industry survey reveals that the discipline of planning has not been immune to these macro changes, and our data shows that a common set of challenges have emerged across operators.
Volatility in commodity prices was identified as the top challenge facing upstream planning organizations today (68 percent of respondents), followed closely by meeting internal demands for information (59 percent) and unique challenges specific to the dynamic nature of the unconventional asset class (43 percent).
A majority of respondents (61 percent) are spending the most planning time on low-value tasks such as data capture and preparation of reports as opposed to high value-add tasks such as analysis (14 percent) and informed discussion (9 percent).
- Performance benchmarks between planning organizations show clear top performers
- Trust, transparency, and collaboration vary greatly among operators
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Performance from one company to another varies widely
Some operators have emerged with best practices for the “new normal” planning environment and learning from them has the potential to benefit E&Ps around the world. Cultivating these best practices and turning planning into a source of sustained competitive advantage is beginning to provide material benefit for some early adopters.
Deep-seated structural problems underlie many of the differences in capabilities
Our results suggest the interplay of systems and processes with less concrete forces such as behaviors and norms is misunderstood and undervalued by many operators.
Other key findings
Staff burnout is an issue for 83 percent of respondents’ organizations and is the single largest area of concern for both executive and non-executive respondents evaluating their own planning technology and systems.
Planning organizations need greater standardization as few organizations have meaningful governance models in place.
Probabilistic information is rarely incorporated into planning work, yet the consensus is that doing so would improve results, either somewhat or substantially.The majority of companies have the capital to invest in planning improvements; the chief obstacles are prioritizing planning against other initiatives and having the staff time to support the work.
About the Upstream Planning Survey
The inaugural Upstream Planning Survey was conducted from August 2017 through December 2017 and targeted individuals at leading E&Ps who participated significantly in their organization’s planning process.
Respondents included senior executives, management, engineers and other planning stakeholders from operators whose production ranged from approximately 25,000 boe/d to over 3 million boe/d and who had material operations within North America. Topic areas of the survey included questions related to planning focus, value, cycles and timelines, information flow, technology, and outlooks into the future of E&P planning.