Abstract
This paper presents a critical review of planning systems for hydrocarbon exploration and production development (E&PD) companies. Traditional planning systems are no longer suitable to manage maturing reservoirs, capital-intensive projects, challenging reservoirs and growing development costs in low oil price regimes. The development of maturing oil fields and unconventional hydrocarbon resources requires dynamic development plans that are rigorously aligned with the targeted performance and adopted strategy. Traditional planning systems are no longer suitable because they lag in reacting to risks and opportunities.
This paper describes a system that would reconcile development plans with business performance and constantly facilitate any required change in strategy. The triangular alignment of development plans with performance and strategy is quantitatively rigorous since it must encompass subsurface and surface operational risks including HSE risks and development cost. Planning system validation is required for gap resolution and alignment of the planning system elements. The use of analytics is a requirement to validate operational plans, validate the strategic plan and measure performance. Organizational structure, capabilities and compliance in maintaining the Planning System Integrity must be managed in par with the strategy milestones.
