Track: Masters Thesis Competition

Abstract

Oil & gas production is intensive cost activity due to the high cutting-edge technologies and energy requirements. In addition to the global continuous increase in power demands and due to the correlation of oil prices with global events which makes the price vulnerable to rapid fluctuation; most oil and gas companies tend to increase the production for the same oil field above the initial forecasting limit to increase the total profit in terms of monetary value during the oil wells’ life. Nevertheless, the oil overproduction has negative impacts on the company main assets such as wells equipment damage, high wells depletion rate, high power consumption, high wastewater, low product quality, and adverse environmental impact; which will make the operation and maintenance cost to be much higher than the production increasing revenues. As the Lean management system concepts and tools are well known in the oil and gas industry and already in use in several operations improvement projects. So, in this research, a new model is suggested to be readily used by any oil and gas company to solve the problem by using Lean concepts and tools such as Value stream mapping “VSM”, Value Analysis, Method Study and Analytic Hierarchy Process “AHP” to eliminate wastes and concentrate the main values of the operations that lead ultimately to an acceptable increase in profits while not causing the mentioned overproduction problems.