The energy industry is entering a period of slower growth and tighter margins. The International Energy Agency expects global oil demand growth in 2025 to be among the weakest since 2009, while supply continues to expand. At the same time, natural gas demand has slowed to barely one percent growth in the first half of this year, with consumption in Asia even declining, while prices remain elevated due to tight supply and heightened geopolitical risks.

For operators, this combination of weaker demand, volatile prices and workforce reductions makes consistency, transparency and repeatability in production management more important than ever.

What Production Excellence means

Production Excellence is a disciplined way of working that delivers the business plan by getting the most from existing assets before new interventions. It connects people, process, data and technology into one operating rhythm. It gives leaders a single version of the truth and gives frontline teams a consistent playbook for optimisation, loss management and decision making.

On the North Sea Continental Shelf, production efficiency sits in the mid seventies. Every percentage point matters. A common framework that reduces unplanned downtime and shortfalls is not a nice to have. It is a requirement.

Why this matters now

1. Delivery of the plan with leaner teams A clear framework lets smaller teams run complex operations with confidence. It removes guesswork, reduces variability and shortens decision cycles.
2. Less loss and more barrels before intervention Daily optimisation can lift output by one to four percent depending on context. That is material at portfolio scale and it happens before any workover or drilling decision.
3. Lower cost of interruption Unplanned downtime remains expensive. Studies place the cost of a one percent downtime rate at more than five million dollars a year for a typical operator. Fewer surprises and faster recovery preserve cash and credibility.
4. Consistency across diverse environments Most operators run a mix of historians, allocation tools and analytics. Production Excellence works when it is system agnostic. Open standards like OSDU and reference models like PPDM help create a common language so that data can flow and decisions can scale.

What good looks like

• Standards and governance A single set of standards and guidelines for forecasting, measurement, allocations and loss management. One cadence. One set of roles. One RACI.
• Common data models and a single version of the truth Adopt open data principles so assets and ventures can talk to each other. Use standard entities and definitions so that KPIs and reconciliations mean the same thing everywhere.
• A dedicated team and discipline Success depends on building a team of subject matter experts, change leaders and coaches who embed the discipline, assure delivery and mentor staff.
• Closed loop performance management Losses are captured, validated and converted into actions. Actions are tracked to completion. Learning is shared. Forecasts and operating limits are updated.
• Technology that serves the process Keep the framework system agnostic. Integrate what you already own. Add analytics where they move the needle. The point is better performance, not more software. Evidence shows that better analytics and modern optimisation can lift daily output with a strong return on effort.

People first

We cannot ignore the labour market. Consolidation and retirements are reducing headcount in many basins. At the same time younger talent expects modern tools, clarity and mobility. Production Excellence supports both pressures. It lets experienced people focus on decisions that matter. It helps new starters become productive faster through standardised processes, shared data definitions and consistent reporting.

Where to start

1. Baseline readiness Assess organisational readiness and asset maturity. Be honest about data quality, process discipline and skills.
2. Define what good looks like Publish clear standards, KPIs and data models. Explain the operating limits and the approval path for changes.
3. Create the team and discipline Appoint champions and subject matter experts in forecasting, measurement, allocations and loss. Give them a mandate to coach, assure and drive continuous improvement.
4. Implement consistently Roll out standards and tools by value and readiness. Focus on optimisation before intervention. Keep the cadence simple and consistent.
5. Monitor and improve Use a monthly and quarterly cycle to review losses, forecast variance and delivery against plan. Share learning. Repeat.

Done well, Production Excellence becomes the quiet operating system of the business. Leaders get transparency and control. Engineers get clear methods and better tools. Finance gets trust in the numbers. Over time you see fewer surprises, more production before capital, lower unit costs, and a stronger culture of accountability.

The industry will keep changing. Demand growth is slowing, supply is fluid and the workforce is evolving. A standardised, system agnostic production framework is how we meet that reality and still deliver the plan.

Closing Thoughts

Production Excellence is not a programme to be announced and forgotten. It is a discipline that connects people, process, data and technology into one operating system. In an industry facing demand uncertainty, labour shortages and price volatility, it provides the clarity and consistency that operators need to meet their business plans. By embedding standards, building the right team, and sustaining a cycle of monitoring and improvement, operators can reduce losses, unlock additional volumes, and build resilience for the future.

References

• International Energy Agency, Oil 2025 Market Report
• UK North Sea Transition Authority, Production Efficiency Data 2023
• ScienceDirect, Daily Production Optimisation Study
• Birlasoft, Predictive Maintenance in Oil & Gas
• Rigzone, Texas Oilfield Job Cuts 2025
• PPDM Association, Data Management Standards
• OSDU Forum, Open Subsurface Data Universe