CASE STUDY

Lease Operator Route Optimization for a Global Oil and Gas Exploration Company

Aug 10, 2017

The recent drop in oil prices is pushing companies to heavily compromise on operational costs to sustain their foothold in the oil and gas market landscape. With the recent fluctuations in crude oil prices, companies have been compelled to reduce investments and have started relying on lease operators to cover fixed costs. To effectively meet the business requirements, companies have started deploying robust lease operator route optimization to increase efficiency, manage resources better, and curtail the time to respond to incidents and accidents. Also, by bringing technology into the oil and gas landscape, organizations can leverage the use of mobile applications and associated applications to achieve the best-suited results from the available infrastructure, resources, products, and services. Consequently, organizations holding a niche position in the oil and gas sector can ideally enable the use of lease operator route optimization to limit the risk and financial exposure, reduce capital investment, minimize the associated time with the first commercial output.

Quantzig’s lease operator route optimization solution assists the client to enhance productivity and further extend the field life to improve profitability and maximize recovery. Also, the solution keeps an eye on the tactical process such as quality, health, safety and environmental factors to deploy robust asset development strategies.

The Business Challenge

A global oil and gas exploration company was facing challenges deploying lease operators across geographically dispersed assets. The company had been assigning wells to operators using a pre-determined and manual method, which led to delays in operator services, high expenses, and inefficient workload balance. To deal with this challenge, the client wanted to drill additional wells and needed a route optimization solution to improve its operating efficiencies.

The key objective of the engagement was to analyze operator routes and the internal data available with the client to improve operating efficiencies. To execute the same, the client leveraged the use of lease operator route optimization, lease operator operating expense control, and hired new lease operators based on data-driven methods for effective capacity planning.

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Our Approach

To improve efficiencies and reduce costs, Quantzig deployed a cross functional team of experts to design and develop a robust route optimization solution. Also, the team further analyzed current lease operator strength and lease routes based on the AS-IS plan to develop a flexible and customizable route plan for lease operators. The route plan also considered variables such as total number of lease operators, workload, travel time, and job time.

Apart from the route plan, the experts assessed the actual mileage and road condition information apart from operator stops and the volume of oil being produced by the wells. The route optimization plan was based on statistical modeling techniques such as non-linear classification techniques, linear programming, and Bayesian networks.

Lease Operator Route Optimization Solution Benefits

  • Provide real-time and updated dashboards based on region, route, and operator for the management
  • Share reports with the operators on their mobile devices with updated route plan and information
  • Assess the impact on the operations and costs to effectively make changes to route stops
  • Significant improvement in efficiency and reduction in operational expenses
  • 15% reduction in total travel time
  • 11% reduction in miles traveled
  • Redeployed operators across various locations to balance workloads

Lease Operator Route Optimization Predictive Insights

  • Compare the results from each algorithm to identify the best-suited techniques
  • Integrate the solution into the existing database to provide the most updated and optimized routes available
  • Create an interactive dashboard to visualize the treatment pathways
  • Visually represent the locations of wells to distinguish wells that were online as well as shut
  • Create network graphs to visualize the routes being taken by the operating personnel along with stops and the estimated travel time and costs
  • Improved workload balance across lease operators based on operational efficiency and staffing needs
  • Map operator routes and status of the wells using real-time dashboards

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