Oil and Gas industry Leader discovers huge cost savings opportunities

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 outdatedThe 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 annuallyUp to $180 million annually for conformance with ALL applicable industry standards, based on a peer company’s recent assessment