Since 2014, global oil prices have been falling rapidly. This has forced the oil and gas industry to find new and more efficient ways of doing business. The downturn has created an operational climate in the industry that focuses on the need to apply Lean Six Sigma methodologies to embrace maximum efficiencies.
Lean Six Sigma Changes the Oil & Gas Industry
Using Lean Six Sigma methodologies that were born in the manufacturing industry, the oil and gas industry has firmly embraced the same practices. Their focus, of course, started in the equipment and supply chain management areas of the industry. It was the most obvious starting point. Subsequently, from gathering large stores of big data, they were able to take Lean Six Sigma methodologies into operations. This has produced the mindset that pad drilling is just exactly like a manufacturing operation. Every aspect of drilling can be controlled with effective Lean Six Sigma practices. Understanding the concept of ‘what is measured gets managed,’ the oil & gas industry quickly understood how much of their operations were ignored. Without doing things in a measured manner, the industry discovered enormous amounts of waste in the processes.
Oil & Gas Efficiencies Present Opportunity
By embracing Lean Six Sigma methodology, workers in the industry have had new doors of opportunity open up for their careers. Whether they are new hires or experienced staff, Lean Six Sigma skills provided these workers opportunities to innovate and improve operations in the industry. Adding to that, skill sets involving big data added to this environment of innovation for the industry and the employees. Having workers who can gather, cleanse and analyze big data is providing the industry the competitive edge it has long sought. Lower prices have brought welcome change to the oil and gas industry through innovation and quality focus.