Optimizing Upstream Costs through Improved Capital Expenditure and Operating Expenditure Discipline

Muhammad Usman¹ , Aliyu Abba² , Bishir Balarabe³

Section:Research Paper, Product Type: Journal-Paper
Vol.5 , Issue.12 , pp.90-94, Dec-2019

Online published on Dec 31, 2019

Copyright © Muhammad Usman, Aliyu Abba, Bishir Balarabe . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Oil and Gas industry is one of the vital industries in the world, largely because of its strategic role in every economy and the world, at large. Some firms in the industry engage in exploration and production of crude oil which is called upstream activity. The paper aims to review structured and effective cost management discipline; improving operational efficiency in field development planning in an era of low oil prices; hydrocarbon management and accounting maturity; the impact of lower oil prices on supply-demand balance and the resulting outlook for onshore and offshore rig and equipment rates globally and regionally; enabling step change improvements in upstream efficiency, productivity, and effectiveness; cost efficiency through extended supply chain at granular level to achieve long-term growth, profitability and competitive advantage; and summary and conclusion were drawn.

Key-Words / Index Term :
upstream, Hydrocarbon, Capital Expenditure, Operation Expenditure

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