Oil and Gas industry Leader discovers huge cost savings opportunities

Oil and Gas industry Leader discovers huge cost savings opportunities with Standards Conformity Assessment

To lower costs enterprise-wide, a global energy company asked IHS to review 35 internal standards and list 143 comparable international standards. Research uncovered conformity opportunities including 25% savings on casing/tubing for $5 million annually and $180 million annually for conformance with ALL industry standards.

Challenge

  • Reduce costs due to company deviation from industry standards by preventing “gold-plating” and unnecessary re-engineering
  • Quantify the cost impact of internal standards variance and identify applicable industry standards in peer group

Solution

IHS Standards Conformity Assessment Process with IHS Goldfire, QUE$TOR, Standards Expert and Product Design Professional Services

Results

  • Set stage for superior design decisions, project performance, and corporate governance with holistic standards lifecycle management
  • Reviewed 35 internal company standards and developed list of 143 comparable API international standards. Research revealed:
    • More than one quarter (26%) of the company’s drilling standards were outdated
    • The company was not complying with more than half (55%) of API standards used by peers
  • Quantified huge potential cost reductions from enterprise-wide standards conformity including:
    • 25% savings on industry-standard casing/tubing for estimated savings of $5 million annually
    • Up to $180 million annually for conformance with ALL applicable industry standards, based on a peer company’s recent assessment

 

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