Oil Drilling Rig

I: As a manager of an oil and gad drilling rig, you are tasked with reducing the overheads associated with it.

C: Can you provide some details regarding the timelines associated with it.

I: Sure. The required timeline for the plan should be panned out over the next 5 years.

C: Based on the information provided, I would like to break down the process into 3 stages.

Immediate goal (Less than 1 year)

Short-term goals (1-2 years)

Long-term goals (3-5 years)

I: Sure. That sounds good, can you explain what factors you would look at.

C: The primary factors to be addressed for overhead reduction are:

Efficient manpower management.
Quality Management
Resource Management
Efficient maintenance activity
Gas ejection systems
Energy management
Gas management plant

I:  Sounds good. Can you bifurcate the same based on the various stages defined previously and provide some details regarding each of the mentioned points  

C: Stage 1: Immediate goals

Efficient manpower management: Employees are often required to work in 12-hour shifts, and due to fatigue associated with work, their productivity reduces overtime loosing up to 3 hours per shift.

Quality Management: One of the main components prone to wear and consequent damage are the pipes and drill bits. Proper maintenance of these like sharpening the bits and powder coating the pipes will drastically extend their lifespan.

Resource Management: Often, supplies suck as food and water, and personal are brought to the rigs via helicopters. Shifting these activities to use boats in its place will drastically reduce the costs associated with transportation. Planned transportation schedules would be the easiest option for this.

Stage 2: Short Terms goals

Planned maintenance: Planning and scheduling maintenance activities such as inspections, replacements and maintenance of equipment will help reduce delays and resulting losses. For this a external management application can be developed and integrated with the rig.

Gas ejection system: While drilling, a lot of gasses escape with the mud that is removed during the process. Using a proper separation system will reduce the emission of these untreated gases into the atmosphere there by reducing the penalties associated with the same

Stage 3: Long term goals

Energy management: One of the primary costs is the shipping of fuels for generating electricity. Setting up systems to efficiently use renewable energy sources like wind and solar coupled with tidal energy and harnessing energy from waves though expensive to set up, will help reduce the energy requirements and costs associated with it in the long run.

Gas management plant: Setting up a power generation plant running on the filtered gas from the ejection system will further reduce the costs associated with power generation, help the oil rigs to be self sufficient in terms of its power requirement.

I:  The points put across are excellent. We can end the case here..