4 PIECES OF ADVICE MARCUS LEMONIS WOULD GIVE TO A LEASE OPERATOR
1. KNOW THE SPECIFIC REVENUE AND COST METRICS FOR EACH ONE OF YOUR WELLS TO IMPROVE PRODUCTION.
“If you don’t know your numbers, you just don’t know your business …. numbers are everything.” Use a mobile enterprise application to record all activity from your well. Be aware of the detailed insights, everything from the temperature, pressure, run tickets, volumes, downtime categories, choke sizes, chemical cost, water disposal, maintenance, uptime, downtime, utilization rates, etc. With deep knowledge of each well, you can maintain it based on real time insights rather than outdated information that is based on similar wells and tribal knowledge. A midsize operator in the Bakken and Three Forks region uses a mobile application to capture their field data and saw an annual improvement of $14.6MM in production performance because of the easy to use tablet interface that allowed them to maintain their wells efficiently to increase production by enabling operators to focus on field maintenance and utilization. They used downtime category and sub-category level insights by assets/regions to improve day to day monitoring and action as well as proactive maintenance planning/budgeting.
2. IMPROVE YOUR PROCESSES IN THE FIELD TO ALLOW MORE TIME FOR MAINTAINING YOUR WELLS.
By using an iPad or Microsoft tablet, you can record and deliver accurate data out in the field without having to drive back to the office to transfer the data from your “grease book” to excel based systems. Instead, use more time out in the field to maintain your wells and less time in the office. A large private independent Eagle Ford E&P operator struggled to pig pipelines in a timely manner because the operators spent 2 hours a day driving back and forth from the office. They suffered from buildup of paraffin deposits in their pipelines which slowed down production. When they were able to spend less time driving to the office and sitting behind a desk and more time maintaining their wells, they reduced pigging times which allowed for better flow rates and increased production.
3. YOU ARE 100% IN CHARGE OF YOUR WELLS – TAKE RESPONSIBILITY.
It’s critical to know the different variables that impact cost revenue and overall profitability for the wells that you are personally responsible for. Have real time and instant access to your well data so that you can monitor your profits and losses. Work with operations to analyze the relevant insights to make specific and strategic budget cuts based on the drill-down details. Know specifically how each well is operating so that you don’t reduce top line performers. Work with managers to avoid broad brush expense cuts across the board that may not be applicable to all wells. For example, it doesn’t make sense to cut chemicals for all wells because if a certain well, or group of wells is already top quartile in chemical management, it would negatively impact the top line for that well. The last thing companies want to do is further reduce their top lines. With these relevant insights, there is no excuse for you not to be responsible for the wells in your region and be held accountable for your own bottom line.
4. CHANGE THE BEHAVIOR OF REPORTING AND ANALYZING DATA THROUGHOUT YOUR ENTIRE ORGANIZATION.
By using a mobile field data capture application you can ensure that your managers and executives are receiving trusted data. From this data, the entire organization can view the same information and take action to optimize production, as well as opex. Work with Production Managers to drive initiatives around the business decisions instead of functional siloes. With the power to access real time data anywhere at any time, you can ensure that the production changes that are implemented are based on smart production insights that will indeed reduce downtime. “You are 100% in charge” of your wells. Own your profit and loss by using a mobile solution that allows your company to take action to proactively optimize field operations by receiving timely, accurate data and insights. “We have been able to increase our production YoY by 7-9% while reducing drilling projects and opex. A significant portion of the increase is being able to optimize existing production.” -Operator, at leading E&P company in the Williston Basin. When your entire organization can see the same data, you can all work together to ensure that all business operations are relevant and working towards the common goal.
5. THE FRONT LINE CAN MAKE A DIFFERENCE
Production improvement is achievable because processes can be improved. Processes are improved with prioritized, mobile production optimization and smart business driven bottom line analytics. Such an enterprise software solution provides visibility from the COO to the Lease Operator. When the entire organization is communicating and collaborating to make data driven business decisions, the business will succeed. “Stay focused, work hard, know your numbers, and be disciplined. If you do those things and take care of your people, the likelihood of being successful is very, very high.” – Marcus Lemonis. Focus where it matters in the field- high impact downtime categories and productions costs- with accurate data delivered by mobile applications and downtime analytics modules, you will be able to achieve your production and cost objectives.
To learn more, visit www.sevenlakes.com.
