Maximizing Value: The Art of Dealing with Debottlenecking Challenges in Oil and Gas

In?a utilization-based business model like the oil and gas sector, efficiency is paramount.?Any bottleneck, no matter how small, can?have significant repercussions on?productivity and profitability. Addressing these bottlenecks?isn't?always straightforward.?In many cases,?the process of debottlenecking itself?becomes a cumbersome endeavor, hindering progress and leaving potential gains unrealized.?But therein lies the challenge: how can companies navigate these barriers to grab maximum value from their operations?

The Deceptive Nature of Debottlenecking

Identifying the bottleneck is?just?the beginning; devising and implementing a solution requires time, resources, and careful planning. The right resources, with the operational expertise needed for strategy development, are?needed?to navigate the various stumbling blocks.??One?common?stumbling block is the tendency to focus solely on the bottleneck?itself, overlooking the broader context of the operation.?This narrow focus can lead to tunnel vision, where efforts become fixated on resolving the immediate issue without considering the?wider?implications.? Moreover, the interconnected nature of oil and gas processes means that addressing one bottleneck may reveal others lurking beneath the surface. This domino effect can prolong the debottlenecking process indefinitely, as each new issue demands attention before?overall progress can be made.

The pursuit of perfection can be the enemy of?progress. Debottlenecking efforts often stall as companies strive for the optimal solution, unwilling to compromise on quality or efficiency. However, in the dynamic world of oil and gas, waiting for the perfect solution can mean missing out on valuable opportunities.? “Just build the box”?was recently said in another LinkedIn article?that spoke?about a product that appeared to?be derived out of just?a simple idea that was just better than before.

So,?what's?the alternative? How can companies break free from the cycle of perpetual debottlenecking and start realizing tangible benefits from their efforts?? The answer lies in embracing incremental value. Rather than viewing debottlenecking as an all-or-nothing endeavor, companies need to take a more nuanced approach, identifying opportunities to capture value in parallel with the debottlenecking process.? Even utilizing temporary solutions, speeding up the recognition of this incremental value capture, can be solutions that can pay off.

Case Studies in Best Practices

For anyone who was working offshore the Gulf of Mexico post-Hurricane Katrina, you can remember how much asset damage?was sustained. Teams?were continually asking?themselves,?“What can we do to get the production online sooner?”?and?“What has to be rebuilt now versus what can?be rebuilt?over time?”.? With this?kind of?time pressure and lost opportunity, even temporary or short-term solutions made sense. Rather than waiting for a comprehensive debottlenecking solution, which included selecting?the most ideal?gas separation equipment, operators focused on off-the-shelf and shovel-ready solutions.? Getting feasible?first?was of utmost priority, then debottlenecking/optimizing back up towards full value capture.?This?proved to be a very economical strategy.? Again, build the?box,?and debottleneck/optimize later.

Especially in refinery operations, ?we have seen companies?find success?by adopting a mindset of continuous improvement. Rather than viewing debottlenecking as a one-time fix, they implement ongoing monitoring and optimization strategies to identify and address bottlenecks as they arise.?This proactive approach?not only maximizes operational efficiency but also?minimizes the risk of future bottlenecks going unnoticed.

Conclusion:

Debottlenecking is an essential but often challenging endeavor. While the temptation to pursue perfection may be strong, resist the urge to wait for the perfect solution. Instead, focus on capturing incremental value wherever possible, leveraging small wins that drive continuous improvement.

Adopting this mindset and embracing a holistic approach to debottlenecking is the strategy that?should be?employed,?and should assist in yielding success in this utilization-driven business model of the oil and gas industry. Let?Candor Technical Services, LLC?be the solutions provider you partner with to recognize your debottlenecking value! #IncrementalValueCapture? #CandorTech? #OptimizeFast #EconomicExcellence