Oil and gas KPIs to track:
- Capital project efficiency
- Attendance and completion of safety training
- Leaks per X customers
- Company performance
- Additional KPIs
A shift is happening.
Oil and gas companies are starting to take a cue from business intelligence and analytics to help them trim costs, boost their bottom line, and improve long-term company performance.
This approach provides you with massive insight into internal company operations, as well as external factors – including oil and gas price unpredictability, harsh weather, environmental calamities and injuries, fluctuations in regulation and taxation, and the growth of alternative energy sources.
Here’s what your oil and gas KPI dashboard should look like.
Top 5 Oil and gas KPIs to track
Oil and gas companies need immediate insight into an abundance of data, but there are five oil and gas KPIs that rise to the top that can help your company make better decisions based on relevant data.
Here’s what you should be tracking.
1. Capital project efficiency
This KPI is a multi-faceted measurement. It combines adherence to a strict budget, maintenance cost, project overrun spending and creep.
2. Attendance and completion of safety training
It’s difficult to track safety. The assumption is that by going through training, employees are more likely to behave cautiously and avoid injury.
Safety managers need to track who is attending safety instruction and pinpoint anything that may be keeping team members from completing it.
3. Leaks per X customers
As an oil and gas firm, you manage lengthy and complex distribution systems.
Consider these statistics:
- U.S. oil and gas companies oversee 2.4 million miles of energy-related pipe.
- There are also 72,000 miles of crude oil pipe.
An understanding of the environmental impact is crucial and that should include:
- An in-depth look at how and where leaks occur.
- The relationship to customer revenue.
- Which assets have the highest repair costs.
4. Company performance
There are several categories you should look at in terms of oil and gas production KPIs. These include:
- Capital spend. This is a quick look at the YTD spending on a given project.
- Lease operating expense. This number represents the costs incurred to keep a well producing after it has been drilled and completed.
- Cash flow. Another way to monitor the financial health of your organization, this oil and gas KPI includes total revenue, total expense, and the cash flow by the region.
5. Additional KPIs for the oil and gas industry
Your specific branch of the oil and gas industry will have its own KPIs that you should be tracking.
Some of them may include:
- Oil spills.
- Loss of primary containment.
- Greenhouse gas emissions.
- Diversity and inclusion.
- Workforce fatalities.
- Missed days of work.
- Recordable injury frequency.
- Fines for environmental and safety violations.
Keep up with oil and gas production KPIs
These oil and gas KPIs provide a good starting point for collecting and measuring crucial data.
Using common business practices, your oil and gas company can realize the value of tracking certain metrics to improve efficiency, safety and overall industry performance.
When the need arises, make sure you’re working with a ground expedite company that can handle your urgent request for parts or materials. Having an existing relationship with an emergency freight shipping provider that you can trust is good for your business.