COVER
TITLE PAGE
PREFACE
ABOUT THE AUTHOR
ACKNOWLEDGMENTS
1 OPTIMIZATION AND BUSINESS IMPROVEMENT STUDIES IN UPSTREAM OIL AND GAS INDUSTRY
1. 1.1 INTRODUCTION
2. 1.2 E&P ACTIVITIES AND PROCESSES
3. 1.3 NEED FOR OPTIMIZATION IN UPSTREAM INDUSTRY
4. 1.4 IMPORTANCE OF CREATIVITY AND DATA USABILITY FOR BUSINESS PERFORMANCE IMPROVEMENT
5. 1.5 OVERVIEW OF THE BOOK
6. REVIEW EXERCISES
7. REFERENCES
8. FURTHER READING
2 OPTIMIZING PRODUCTIVITY OF DRILLING OPERATIONS
1. 2.1 INTRODUCTION
2. 2.2 A BRIEF NOTE ON DRILLING OPERATION AND COST
3. 2.3 OBJECTIVES
4. 2.4 KEY OBSERVATIONS AND FINDINGS
5. 2.5 HUMAN FACTORS
6. 2.6 ORGANIZATIONAL FACTORS
7. 2.7 TECHNICAL FACTORS
8. 2.8 BENEFITS AND SAVINGS POTENTIAL
9. 2.9 LIMITATIONS OF THE STUDY AND SCOPE FOR FURTHER WORK
10. 2.10 CONCLUSION
11. REVIEW EXERCISES
12. REFERENCES AND USEFUL LINKS
13. FURTHER READING
3 A DIAGNOSTIC APPROACH TO OPTIMIZE CONTROLLABLE RIG TIME LOSS
1. 3.1 INTRODUCTION
2. 3.2 RIG TIME LOSS AND NONPRODUCTIVE DRILLING TIME
3. 3.3 OBJECTIVES
4. 3.4 OBSERVATIONS
5. 3.5 WAITING ON MATERIALS
6. 3.6 WAITING ON DECISIONS
7. 3.7 WAITING ON LOGGING
8. 3.8 EQUIPMENT REPAIR DOWNTIME
9. 3.9 OTHER SHUTDOWN
10. 3.10 WAITING ON WEATHER
11. 3.11 CONCLUSION AND SCOPE FOR IMPROVEMENT
12. REVIEW EXERCISES
13. REFERENCES
14. FURTHER READING
4 OPTIMIZING G&G STRATEGIES FOR DEEPWATER OIL AND GAS EXPLORATION
1. 4.1 INTRODUCTION
2. 4.2 OBJECTIVES
3. 4.3 METHODOLOGY
4. 4.4 OPTIMIZATION OF G&G EVALUATION TIME IN DEEPWATER WELLS
5. 4.5 ECONOMICS OF ACQUIRING LWD FOR OWN DEEPWATER RIG
6. 4.6 IMPROVE ACCURACY OF GEOLOGICAL PREDICTIONS
7. 4.7 EFFECT ON DOWNHOLE COMPLICATIONS DUE TO THE VARIATION IN FORMATION PRESSURE
8. 4.8 SLIPPAGE IN WELL COMPLETION TIME OF DEEPWATER WELLS
9. 4.9 INFLUENCE OF PEOPLE’S FACTORS ON THE SUCCESS OF DEEPWATER EXPLORATION
10. 4.10 BENEFITS
11. 4.11 LIMITATIONS OF THE STUDY AND SCOPE FOR IMPROVEMENT
12. 4.12 CONCLUSION
13. REVIEW EXERCISES
14. FURTHER READING
5 OPTIMIZATION OF OFFSHORE SUPPLY VESSEL FLEET SIZE USING QUEUING THEORY
1. 5.1 INTRODUCTION AND BACKGROUND OF THE PROBLEM
2. 5.2 OBJECTIVES
3. 5.3 WAITING LINE MODEL: A BRIEF NOTE
4. 5.4 FORMULATION OF THE MODEL
5. 5.5 RESULTS
6. 5.6 LIMITATIONS OF THE MODEL AND SCOPE FOR FURTHER WORK
7. 5.7 CONCLUSION
8. REVIEW EXERCISES
9. APPENDIX 5.A QUEUING CHARACTERISTICS WITH VARYING NUMBER OF OFFSHORE SUPPLY VESSELS
10. APPENDIX 5.B FINAL SOLUTION FOR M/M/31 MODEL
11. REFERENCES
12. FURTHER READING
6 STANDARDIZING CONSUMPTION OF HSD, CEMENT, AND CHEMICALS IN OIL/GAS WELLS AND RIGS
1. 6.1 INTRODUCTION
2. 6.2 OBJECTIVES
3. 6.3 METHODOLOGY
4. 6.4 STANDARDIZATION OF HSD CONSUMPTION
5. 6.5 STANDARDIZATION OF OIL WELL CEMENT CONSUMPTION
6. 6.6 STANDARDIZATION OF CHEMICAL CONSUMPTION
7. 6.7 BENEFITS AND SCOPE FOR IMPROVEMENT
8. 6.8 CONCLUSIONS
9. REVIEW EXERCISES
10. APPENDIX 6.A DETAILS OF OWN AND HIRED RIGS DEPLOYED AT OFFSHORE ASSET
11. REFERENCE
12. FURTHER READING
7 OPTIMIZING RIG MOVE TIME AND ACTIVITY SCHEDULE USING CRITICAL PATH ANALYSIS
1. 7.1 INTRODUCTION
2. 7.2 OBJECTIVES
3. 7.3 A BRIEF NOTE ON NETWORK ANALYSIS USING PERT/CPM
4. 7.4 DEVELOPMENT OF NETWORK ANALYSIS MODEL
5. 7.5 RESULTS AND DISCUSSIONS
6. 7.6 PROBABILITY OF COMPLETION OF PROJECT ON TIME
7. 7.7 CRASHING OF ACTIVITY AND PROJECT COMPLETION TIME
8. 7.8 SUGGESTIONS
9. 7.9 LIMITATIONS OF THE STUDY AND SCOPE FOR FURTHER WORK
10. 7.10 CONCLUSIONS
11. REVIEW EXERCISES
12. APPENDIX 7.A LIST OF TASKS/ACTIVITIES
13. APPENDIX 7.B SLACK
14. APPENDIX 7.C CRITICAL PATH
15. REFERENCES AND USEFUL LINKS
16. FURTHER READING
8 DEVELOPING UNIFORM STANDARDS FOR EMERGENCY ALARM SYSTEM AND INDICATORS FOR OFFSHORE OIL AND GAS INSTALLATIONS
1. 8.1 INTRODUCTION
2. 8.2 OBJECTIVES
3. 8.3 METHODOLOGY
4. 8.4 OBSERVATIONS
5. 8.5 DEEP DIVE AND FINDINGS
6. 8.6 RECOMMENDATIONS
7. 8.7 CONCLUSIONS
8. REVIEW EXERCISES
9. APPENDIX 8.A CURRENT EMERGENCY ALARM SYSTEMS/CODE OF SIGNALS AT VARIOUS OFFSHORE RIGS
10. APPENDIX 8.B CURRENT EMERGENCY ALARM SYSTEMS/CODE OF SIGNALS AT VARIOUS OFFSHORE PLATFORMS
11. REFERENCES AND USEFUL LINKS
9 OPTIMIZING SUPPLY CHAIN MANAGEMENT SYSTEM OF AN E&P COMPANY
1. 9.1 INTRODUCTION
2. 9.2 THE EVOLUTION OF SCM
3. 9.3 OBJECTIVES
4. 9.4 SCM SYSTEM
5. 9.5 PROCUREMENT GROUP
6. 9.6 MATERIALS MANAGEMENT GROUP
7. 9.7 SCM SUPPORT GROUP
8. 9.8 BENEFITS
9. 9.9 THE SCOPE FOR FURTHER WORK
10. 9.10 CONCLUSIONS
11. REVIEW EXERCISES
12. REFERENCES AND USEFUL LINKS
13. FURTHER READING
10 MANPOWER OPTIMIZATION AND
1. 10.1 INTRODUCTION
2. 10.2 OBJECTIVES
3. 10.3 MANPOWER PLANNING AND OPTIMIZATION PROCESS
4. 10.4 METHODS OF MANPOWER DEMAND FORECASTING
5. 10.5 OTHER KEY ISSUES IN MANPOWER PLANNING
6. 10.6 INTRODUCTION OF MULTISKILLING AND MULTIDISCIPLINARY APPROACH
7. 10.7 RATIONALIZATION OF DISCIPLINES, TRADES, AND CATEGORIES
8. 10.8 A CASE STUDY ON MANPOWER OPTIMIZATION
9. 10.9 CONCLUSION
10. REVIEW EXERCISES
11. APPENDIX 10.A SUMMARIZED WORK SAMPLING OBSERVATION SHEET OF RIG MAINTENANCE CREW (ELECTRICAL MAINTENANCE CREW)
12. APPENDIX 10.B ASSESSMENT OF MANPOWER DEMAND VIS-À-VIS CURRENT EMPLOYEE STRENGTH OF THE ASSET (BALANCING MANPOWER DEMAND AND SUPPLY)
13. APPENDIX 10.C ASSESSMENT OF MANPOWER DEMAND AND COMPARISON (ACTIVITY/SUBSECTION WISE)
14. APPENDIX 10.D SOME NOTABLE EXCESS/DEFICIT CATEGORIES AS PER ASSESSMENT
15. APPENDIX 10.E ASSESSMENT OF MANPOWER DEMAND USING COMPANY NORMS AND WORK PRACTICES
16. FURTHER READING
11 IMPROVING ORGANIZATIONAL EFFICIENCY THROUGH BUSINESS PROCESS SIMPLIFICATION
1. 11.1 INTRODUCTION
2. 11.2 OBJECTIVES
3. 11.3 DIFFERENCES BETWEEN BUSINESS PROCESS SIMPLIFICATION AND BUSINESS PROCESS REDESIGN/REENGINEERING
4. 11.4 IDENTIFY OPPORTUNITIES FOR BUSINESS PROCESS SIMPLIFICATION
5. 11.5 BUSINESS PROCESS SIMPLIFICATION: SOME REAL-LIFE EXAMPLES
6. 11.6 SUGGESTIONS FOR IMPROVEMENT
7. 11.7 SCOPE FOR FURTHER WORK
8. 11.8 CONCLUSION
9. REVIEW EXERCISES
10. REFERENCES
11. FURTHER READING
12 OPTIMIZATION OF BASE OIL PRICE USING LINEAR PROGRAMMING
1. 12.1 INTRODUCTION
2. 12.2 OBJECTIVES
3. 12.3 A BRIEF NOTE ON LP
4. 12.4 FORMULATION OF THE MODEL
5. 12.5 MODEL CALIBRATION AND EXECUTION
6. 12.6 RESULTS
7. 12.7 LIMITATIONS OF THE MODEL AND SCOPE FOR FURTHER WORK
8. 12.8 CONCLUSIONS
9. REVIEW EXERCISES
10. APPENDIX 12.A RESULT FOR RUN 1
11. APPENDIX 12.B RESULT FOR RUN 2
12. APPENDIX 12.C (RUN 1) RESULT: SENSITIVITY—OBJECTIVE AND RANGE OF VARIABILITY
13. APPENDIX 12.D (RUN 2) RESULT: SENSITIVITY—OBJECTIVE AND RANGE OF VARIABILITY
14. APPENDIX 12.E (RUN 1) RESULT: SENSITIVITY—DUALS
15. APPENDIX 12.F (RUN 2) RESULT: SENSITIVITY—DUALS
16. REFERENCES AND USEFUL LINKS
INDEX
END USER LICENSE AGREEMENT

List of Illustrations

Chapter 02
1. FIGURE 2.1 On-land drilling rig.
2. FIGURE 2.2 Comparison of cycle speed.
3. FIGURE 2.3 Comparison of commercial speed.
4. FIGURE 2.4 Comparison: Number of wells completed per rig-year.
5. FIGURE 2.5 Well completion time slippage (%).
6. FIGURE 2.6 Comparison of production testing time slippage (%).
7. FIGURE 2.7 Average age of own and hired rigs (as on 12/20xx).
8. FIGURE 2.8 Age of own rigs (as on 12/20xx).
9. FIGURE 2.9 Age of hired rigs (as on 12/20xx).
10. FIGURE 2.10 Major well cost components.
11. FIGURE 2.11 Components of rig operating cost.
12. FIGURE 2.12 Comparison of average rig operating cost per day. Note: The average cost on POL, OSV, helicopter, drilling overheads, contractual, and IMR jobs is nearly the same at USD 17,500 per day for both own and hired rigs. The average rig hiring and mobilization charges are around USD 50,000 per day. The average cost for spares, catering, manpower, repair and maintenance, insurance, and depreciation at own rigs is around USD 17,500 per day.
13. FIGURE 2.13 Comparison of crew strength at own and hired rigs. Note: Engineering crew includes staff of mechanical and electrical disciplines, crane operator, welder, and storekeeper.
14. FIGURE 2.14 Officers: workers ratio at own and hired rigs. Note: Assuming job positions in hired rigs are similar to own rigs, that is, rig superintendant, tool/tour pusher, driller, assistant driller, chief mechanic, and chief electrician are equivalent to officers; derrick man, rig/floorman, motorman, electrician, crane operator, welder, roustabout, and storekeeper are considered as workers (highly skilled).
15. FIGURE 2.15 Comparison of crew age at own and hired rigs.
16. FIGURE 2.16 Crew above 40 years of age (%).
17. FIGURE 2.17 Qualification profile of officers posted at rigs.
18. FIGURE 2.18 Calorie requirement versus food provided at rigs.
19. FIGURE 2.19 Average equipment downtime per rig per year (h).
20. FIGURE 2.20 Comparison of phase-wise drilling time slippage (%), Year 1.
21. FIGURE 2.21 Comparison of phase-wise drilling time slippage (%), Year 2.
22. FIGURE 2.22 Average nonproductive time due to stuck-up, fishing, and sidetracking per rig per year.
23. FIGURE 2.23 Average nonproductive time due to downhole complications per rig per year.
Chapter 03
1. FIGURE 3.1 Elements of controllable downtime (h, as % of rig time).
2. FIGURE 3.2 Occurrences of controllable downtime (number of times, % of occurrence).
3. FIGURE 3.3 Components of controllable downtime: cost.
4. FIGURE 3.4 Average controllable downtime per rig per year.
5. FIGURE 3.5 Elements of waiting on materials (h, % WoM).
6. FIGURE 3.6 WoM during different operations (h, as % of respective operation time).
7. FIGURE 3.7 Waiting on materials: duration and frequency.
8. FIGURE 3.8 Utilization of offshore supply vessels (%).
9. FIGURE 3.9 Availability of offshore supply vessels (number).
10. FIGURE 3.10 Waiting on decision during different operations (h, % WoD).
11. FIGURE 3.11 Elements of waiting on logging (h, % WoL).
12. FIGURE 3.12 Waiting on logging during different operations (h, as % of respective operation time).
13. FIGURE 3.13 Waiting on logging: duration and frequency.
14. FIGURE 3.14 Elements of equipment repair downtime (h, % of equip. repair).
15. FIGURE 3.15 Equipment repair downtime during different operations (h, as a % of respective operation time).
16. FIGURE 3.16 Equipment repair downtime: duration and frequency.
17. FIGURE 3.17 Equipment downtime per rig per year (h): comparison.
18. FIGURE 3.18 Elements of other shutdown (h, % of other shutdown).
19. FIGURE 3.19 Other shutdown during different operations (h, as a % of respective operation time).
20. FIGURE 3.20 Other shutdown: duration and frequency.
21. FIGURE 3.21 Waiting on weather (h, % WoW).
22. FIGURE 3.22 Waiting on weather during different operations (h, as a% of respective operation time).
23. FIGURE 3.23 Waiting on weather: duration and frequency.
Chapter 04
1. FIGURE 4.1 Number of wells studied: area-wise.
2. FIGURE 4.2 Number of wells studied: operatorship.
3. FIGURE 4.3 Water depth of wells drilled by own rigs.
4. FIGURE 4.4 Water depth of wells drilled by hired rigs.
5. FIGURE 4.5 Evaluation (logging and coring) time as percentage of well completion time in hired rigs.
6. FIGURE 4.6 Total evaluation (logging, coring, and PT) time as percentage of well completion time in hired rigs.
7. FIGURE 4.7 Breakup of rig cycle time: hired rigs.
8. FIGURE 4.8 Evaluation (logging and coring) time as percentage of well completion time in own rig.
9. FIGURE 4.9 Total evaluation (logging, coring, and PT) time as percentage of well completion time in own rigs.
10. FIGURE 4.10 Breakup of rig cycle time: own rig.
11. FIGURE 4.11 Number of hydrocarbon shows at west coast (predicted vs. actual: well-wise).
12. FIGURE 4.12 Number of hydrocarbon shows at east coast (predicted vs. actual: well-wise).
13. FIGURE 4.13 Number of objects tested versus oil/gas found (well-wise).
14. FIGURE 4.14 Downhole complications as percentage of drilling time at wells drilled by own rigs.
15. FIGURE 4.15 Downhole complications as percentage of drilling time at wells drilled by hired rigs.
16. FIGURE 4.16 Well no.: EEXS-1.
17. FIGURE 4.17 Well no.: HE2BB.
18. FIGURE 4.18 Slippage (%) in well completion time by own rigs.
19. FIGURE 4.19 Slippage (%) in well completion time by hired rigs.
Chapter 05
1. FIGURE 5.1 Flow line diagram of birth–death process.
2. FIGURE 5.2 Queuing characteristics: waiting time (W, W_q) versus the number of OSVs.
3. FIGURE 5.3 Queuing characteristics: queue length (L, L_q) versus the number of OSVs.
4. FIGURE 5.4 Queuing characteristics: P₀, P_w, and P_n versus the number of OSVs.
5. FIGURE 5.5 Waiting cost and service cost trade-off.
Chapter 06
1. FIGURE 6.1 Region 1: HSD consumption per meter drilling; drill depth, 2100 m.
2. FIGURE 6.2 Region 1: HSD consumption per meter drilling; drill depth, 3000 m.
3. FIGURE 6.3 Region 1: HSD consumption per meter drilling; drill depth, 3600 m.
4. FIGURE 6.4 Region 1: HSD consumption per meter drilling; drill depth, 4900 m.
5. FIGURE 6.5 Region 3: HSD Consumption per meter drilling; drill depth, 3600 m.
6. FIGURE 6.6 Region 3: HSD consumption per meter drilling; drill depth, 4900 m.
7. FIGURE 6.7 Region 3: HSD consumption per meter drilling; drilling depth, 6100 m.
8. FIGURE 6.8 Region 2: HSD consumption per meter drilling; drill depth, 3600 m.
9. FIGURE 6.9 Region 2: HSD consumption per meter drilling; drill depth, 4900 m.
10. FIGURE 6.10 Region 2: HSD consumption per meter drilling; drill depth, 6100 m.
11. FIGURE 6.11 Comparison of HSD consumption per meter drilling.
12. FIGURE 6.12 HSD consumption per meter drilling by own jack-up rigs.
13. FIGURE 6.13 HSD consumption per meter drilling by hired jack-up rigs.
14. FIGURE 6.14 HSD consumption per meter drilling by own drillships.
15. FIGURE 6.15 HSD consumption per meter drilling by hired drillships.
16. FIGURE 6.16 Average load on engines at drilling rigs (%: high, low, mean).
17. FIGURE 6.17 Region 1: cement consumption (tons) in 2 CP wells.
18. FIGURE 6.18 Region 1: cement consumption in 3 CP wells.
19. FIGURE 6.19 Region 3 (Asset 3K): cement consumption in 3 CP wells.
20. FIGURE 6.20 Region 3 (Asset 3R): cement consumption in 3 CP wells.
21. FIGURE 6.21 Region 2: cement consumption in 3 CP wells.
22. FIGURE 6.22 Region 1 (Asset 1N): cement consumption in 4 CP wells.
23. FIGURE 6.23 Region 2: cement consumption in 4 CP wells.
24. FIGURE 6.24 Cement consumption in 3 CP wells in offshore drilled by jack-up rigs.
25. FIGURE 6.25 Cement consumption in 4 CP wells in offshore drilled by jack-up rigs.
26. FIGURE 6.26 ABC analysis of chemicals used in offshore.
27. FIGURE 6.27 Unit consumption of Barites (kg/m) in onshore Region 1.
28. FIGURE 6.28 Unit consumption of Barites (kg/m) in onshore Region 2.
29. FIGURE 6.29 Unit consumption of Barites (kg/m) in onshore Region 3.
30. FIGURE 6.30 Unit consumption of Barites (kg/m) in offshore.
31. FIGURE 6.31 Pattern of Barite consumption in onshore Region 3.
32. FIGURE 6.32 Pattern of Barite consumption in onshore Region 1.
33. FIGURE 6.33 Pattern of Barite consumption in onshore Region 2.
34. FIGURE 6.34 Pattern of Barite consumption in offshore.
Chapter 07
1. FIGURE 7.1 Normal distribution with mean (μ) and standard deviation (σ) depicting areas under each segment of the curve; shaded area left to the Z-value is the probability of occurrence.
2. FIGURE 7.2 Project time–cost relationship.
3. FIGURE 7.3 Activity crashing: linear time–cost trade-off.
Chapter 09
1. FIGURE 9.1 SCM system (functions, subfunctions, and activities).
2. FIGURE 9.2 Procurement cycle time (months—high, low, and mean).
3. FIGURE 9.3 Present (“as-is”) material planning practices.
4. FIGURE 9.4 Average order processing time (days—high, low, and mean) (current company norm time: 75–115 days).
5. FIGURE 9.5 Average order processing time (PR to PO).
6. FIGURE 9.6 Number of bidders versus number of items.
7. FIGURE 9.7 Procurement of common items.
8. FIGURE 9.8 Analysis of spares procured (# of items).
9. FIGURE 9.9 Analysis of spares procurement (amount).
10. FIGURE 9.10 Spares procured and consumed in offshore, Year N.
11. FIGURE 9.11 Spares procured and consumed in offshore, Year N + 1.
12. FIGURE 9.12 Inventory as percentage of capital employed in the company.
13. FIGURE 9.13 Inventory as percentage of capital employed: comparison (high, low, and mean).
14. FIGURE 9.14 Inventory (in terms of stock-month) in the company.
15. FIGURE 9.15 Inventory turnover (revenue/inventory) in the company.
16. FIGURE 9.16 (a) Inventory: category-wise distribution (no. of items), (b) Asset 1, (c) Asset 2, and (d) Asset 3.
17. FIGURE 9.17 (a) Inventory: category-wise valuation, (b) Asset 1, (c) Asset 2, and (d) Asset 3.
18. FIGURE 9.18 (a) Quarterly material receipt and consumption pattern in offshore, (b) quarterly material receipt and consumption pattern in Asset 1, and (c) quarterly material receipt and consumption pattern in Drilling Services.
19. FIGURE 9.19 Existing SCM setup at Assets/Basins.
Chapter 10
1. FIGURE 10.1 Asset structure.
2. FIGURE 10.2 Group-/department-wise strength of Asset (total: 1005).
3. FIGURE 10.3 Officer and worker strength (total: 1005).
4. FIGURE 10.4 Officer/worker ratio.
5. FIGURE 10.5 Officers availing quarterly travel facility.
6. FIGURE 10.6 Qualification profile of officers.
7. FIGURE 10.7 Qualification profile of skilled workers.
8. FIGURE 10.8 Age profile of officers.
9. FIGURE 10.9 Age profile of skilled workers.
10. FIGURE 10.10 Age profile of unskilled workers.
11. FIGURE 10.11 Retirement profile of employees.
12. FIGURE 10.12 Retirement profile of employees—breakup.
13. FIGURE 10.13 Skill base/qualification of retiring employees.
Chapter 11
1. FIGURE 11.1 Loan for purchase of land and construction of house: current process.
2. FIGURE 11.2 Loan for ready-built/under-construction house: current process.
3. FIGURE 11.3 Simplified process for purchase of land and construction of house.
4. FIGURE 11.4 Simplified process for ready-built and under-construction house.
5. FIGURE 11.5 Duty travel: current process.
6. FIGURE 11.6 Duty travel: simplified process.
7. FIGURE 11.7 NOC for passport: current process.
8. FIGURE 11.8 NOC for passport: simplified process.
Chapter 12
1. FIGURE 12.1 Price multiplier from reserves–production ratio to desired reserves–production ratio.
2. FIGURE 12.2 Base oil price with varying β (sensitivity analysis).

PREFACE

Oil and gas exploration and production (E&P) is a complex process involving a series of activities that are costly, risky, and technology intensive and require specialized manpower.

With a rise in the global oil demand and fast depletion of easy reserves, the search for oil is now directed to more difficult areas, such as deepwater and arctic region, and future production is expected to come from increasingly difficult reserves (deeper horizon, heavy oil, etc.). As a result, E&P activities are now even more costly, risky, and dependent on cutting-edge technology. Therefore, it is necessary to optimize resources, opportunities, and costs and improve business performance in the entire gamut of E&P activities.

Furthermore, due to inherent uncertainties involved in E&P activities, where input is deterministic but output is probabilistic, it is imperative that oil companies use their capital and resources judiciously. In this regard, various optimization and business process improvement techniques have been discussed in this book, which have the potential of saving substantial amounts of money and improve organizational efficiency.

The book is unique as it delves into the core and functional areas covering a wide range of operations and processes in the upstream oil and gas industry. The book contains 11 real-life studies conceived and developed by the author covering an extensive array of activities and processes, namely, optimization of strategies, resources, and costs; improvement in business performance and operational productivity in core activities; identification and removal of inefficiencies in core and functional areas; standardization of consumption of materials; development of uniform standards for offshore safety alarm system; simplification of business processes for enhancing organizational efficiency; and improvement in human resource productivity. The book is replete with examples of quantitative and qualitative techniques, such as linear programming, queuing theory, critical path analysis, economic analysis, best practice benchmark, and business process simplification. The quantitative techniques are based on mathematical treatise that has universal applicability and acceptability.

The book will be of immense interest to practicing managers, professionals, and employees at all levels and disciplines in oil and gas companies, especially upstream companies to improve their respective operational areas, business processes, systems, and organizational efficiency. It will also be useful to academicians; scholars; educational institutes; energy research institutes, especially dealing with oil and gas; consultants; and others, as the work is rich and replete with the application of quantitative techniques in real-life problems. The work may also be used as a practical guide by professionals to enhance organizational efficiency and performance and optimize resources. The availability of such type of book has not yet been reported in the market or in the industry. Practicing managers and professionals at all levels in oil and gas industry would find it useful to know the nuances of optimization and emulate these studies in their respective domain of work, thus immensely benefiting their organizations. All these studies have the potential of saving substantial amounts of money, besides improving organizational efficiency. One can ignore the book, if one can afford to splurge substantial amounts of money!

Review exercises have been included at the end of each chapter, which will help readers to recapitulate the key learnings and test their understanding about the subject. It will also assist the readers to focus on important areas and revisit the relevant portions to capture their essence. Review exercises are mostly related to topics discussed in the respective chapters. But a couple of questions in Chapters 2, 3, 4, and 6 are a bit more technical and specialized in nature, which are marked as “Advance.” These have not necessarily been discussed in detail in these chapters and require further studies. These are meant for subject matter experts (SMEs) and E&P professionals dealing with these jobs.

An enriching list of “References, Useful Links, and Further Reading” have also been incorporated at the end of each chapter, which will help the interested readers to learn more and go deep into the respective subjects as per their need.

The views expressed in the book are those of author’s and do not necessarily reflect the views of any organization or entity or individual.