Glossary of Technical Terms Used in Oil & Gas Processing: Benefits Profiles

Benefits Profiles

Benefits Profiles: A Crucial Element in Oil & Gas Programme Success

In the dynamic and complex landscape of the Oil & Gas industry, successful project execution hinges on a clear understanding of the desired outcomes and how they will be achieved. This is where Benefits Profiles come into play.

What are Benefits Profiles?

Benefits Profiles are a core component of the Programme Definition Statement (PDS), a critical document that outlines the overarching goals and strategies for a major Oil & Gas project or programme. They are essentially detailed descriptions of the anticipated benefits that the project is expected to deliver. These benefits can encompass a wide range of areas, including:

  • Financial: Increased production, reduced operating costs, improved profitability.
  • Operational: Enhanced safety, improved efficiency, reduced environmental impact.
  • Strategic: Enhanced market position, access to new resources, technological advancements.

Why are Benefits Profiles Important?

Benefits Profiles serve several crucial purposes:

  • Clearly Define Goals: They provide a clear and concise statement of the desired outcomes, aligning everyone involved on the project's ultimate objectives.
  • Measure Success: They establish a framework for measuring and tracking the realized benefits throughout the programme lifecycle, ensuring that the project is delivering on its promises.
  • Prioritize Resources: They allow for informed decision-making regarding resource allocation, prioritizing investments that will maximize the achievement of the intended benefits.
  • Communicate Value: They effectively communicate the value proposition of the project to stakeholders, including investors, regulatory bodies, and the public.

Key Components of a Benefits Profile:

A well-defined Benefits Profile should include the following elements:

  • Benefit Statement: A clear and concise description of the intended benefit, expressed in measurable terms.
  • Target Value: A quantifiable target for the benefit, outlining the expected level of achievement.
  • Measurement Method: A defined method for measuring and tracking the realized benefit against the target value.
  • Timeline: A projected timeframe for the realization of the benefit.
  • Responsible Party: The individual or team responsible for delivering and monitoring the benefit.

Example of a Benefits Profile in Oil & Gas:

Benefit Statement: Increase production capacity by 10% within the next two years. Target Value: Increase daily oil production from 10,000 barrels to 11,000 barrels. Measurement Method: Track daily production data and compare against the target value. Timeline: Two years from project commencement. Responsible Party: Production and Operations team.

Conclusion:

Benefits Profiles are crucial in ensuring that Oil & Gas projects deliver tangible value to stakeholders. By clearly defining objectives, prioritizing resources, and tracking progress, they provide a robust framework for achieving project success and maximizing the return on investment.


Test Your Knowledge

Quiz: Benefits Profiles in Oil & Gas

Instructions: Choose the best answer for each question.

1. What is the primary purpose of Benefits Profiles in Oil & Gas projects?

a) To track project expenses. b) To define project timelines. c) To outline the anticipated benefits of the project. d) To manage project risks.

Answer

c) To outline the anticipated benefits of the project.

2. Which of the following is NOT a key component of a Benefits Profile?

a) Benefit Statement b) Target Value c) Project budget d) Measurement Method

Answer

c) Project budget

3. How do Benefits Profiles contribute to prioritizing resources?

a) By identifying the most expensive project activities. b) By highlighting the benefits that align with strategic goals. c) By ensuring that all project stakeholders have equal input. d) By outlining the minimum resources required for project completion.

Answer

b) By highlighting the benefits that align with strategic goals.

4. Which of the following is an example of a financial benefit that could be included in a Benefits Profile?

a) Improved safety procedures b) Reduced environmental impact c) Increased production capacity d) Access to new technology

Answer

c) Increased production capacity

5. What is the significance of defining a "Timeline" for each benefit in a Benefits Profile?

a) To ensure project completion within a specific timeframe. b) To track the progress of benefit realization over time. c) To identify potential delays in achieving project objectives. d) To determine the duration of the project's operational phase.

Answer

b) To track the progress of benefit realization over time.

Exercise: Building a Benefits Profile

Scenario: An Oil & Gas company is planning a project to install new drilling equipment that will allow them to access a previously untapped oil reserve.

Task: Create a Benefits Profile for this project. Include the following components:

  • Benefit Statement: Briefly describe the anticipated benefit of installing the new drilling equipment.
  • Target Value: Set a quantifiable target for this benefit.
  • Measurement Method: Describe how you will measure the achievement of the target value.
  • Timeline: Specify a projected timeframe for realizing the benefit.
  • Responsible Party: Identify the team or individual responsible for delivering and monitoring the benefit.

Example:

Benefit Statement: Increase oil production from the new reserve.

Target Value: Achieve an average daily production of 5,000 barrels of oil within the first year of operation.

Measurement Method: Track daily oil production data from the new reserve and calculate the average daily production over a 12-month period.

Timeline: 12 months from the completion of the installation and commissioning of the drilling equipment.

Responsible Party: Production and Operations Team.

Exercise Correction

This is an example of a possible solution. Your solution might differ slightly depending on the specifics you choose for your Benefits Profile.

Benefit Statement: Increase oil production from the new reserve.

Target Value: Achieve an average daily production of 5,000 barrels of oil within the first year of operation.

Measurement Method: Track daily oil production data from the new reserve and calculate the average daily production over a 12-month period.

Timeline: 12 months from the completion of the installation and commissioning of the drilling equipment.

Responsible Party: Production and Operations Team.


Books

  • Project Management for the Oil & Gas Industry: This book by Patrick Pinto discusses project management principles tailored to the oil and gas industry, including the use of benefits profiles.
  • Managing Oil and Gas Projects: A Practical Guide: This book by David L. Goins provides a comprehensive overview of oil and gas project management, with dedicated sections on benefits identification and management.
  • Programme Management for Oil & Gas: This book by Alan Fowler examines the use of benefits profiles in the context of large-scale oil and gas programmes.

Articles

  • Benefits Management in the Oil and Gas Industry: A white paper by Arup, discussing the importance of benefits management and providing guidance on developing effective benefits profiles.
  • The Importance of Benefits Realization in Oil and Gas Projects: An article published on the website of the International Association of Oil & Gas Producers (IOGP) outlining the challenges of achieving benefits in oil and gas projects and providing practical solutions.
  • Benefits Profiles: A Key Element of Success for Oil and Gas Projects: A blog post by a project management consultant, highlighting the value of benefits profiles and providing examples of their application.

Online Resources

  • Project Management Institute (PMI): The PMI offers numerous resources on project management, including best practices for benefits management.
  • International Association of Oil & Gas Producers (IOGP): The IOGP provides guidance and best practices for managing oil and gas projects, including benefits management.
  • Oil & Gas UK: This organization provides resources for the UK oil and gas industry, including guidance on project management and benefits realization.

Search Tips

  • Use specific keywords like "benefits profiles", "oil and gas", "project management", "programme management", "benefit realization", and "value management".
  • Combine keywords with relevant industry terms like "upstream", "downstream", "exploration", "production", "refining", and "distribution".
  • Include specific project types like "field development", "pipeline construction", and "refinery upgrades" to refine your search.
Similar Terms
Industry Leaders
  • Benefits Unlocking the Power of Benefi…
Oil & Gas Specific Terms
Project Planning & Scheduling
Human Resources Management
Safety Training & Awareness
Cost Estimation & Control
Most Viewed

Comments


No Comments
POST COMMENT
captcha
Back