Advancing Energy Performance in Oil and Gas Industry through Systematic Implementation of Energy Efficiency Programs by Applying an Operational Excellence Model

Abstract

Energy performance has becoming one of the top global discussion subjects due to the facts of hiked in fossil fuel price, changed in living standards, increased in Green House Gas (GHG) awareness as well as fair business practices such as subsidies and environment regulations. It has pushed societal expectations on oil companies’ especially National Oil Companies (NOCs) located in Middle East to rigorously conserve energy and explore ways to enhance its performance. In current industrial practice, Energy Efficiency Programs (EEP) is one of typical initiatives that have been evolving since the late 1990s. However, its progress has just been seen and unfortunately, NOCs are far away from a matured management in addressing EEP expectations. Most of NOCs consider EEP as an ambition, rather than a condition applying to all levels of the businesses. In fact, cost reduction is a main focus rather than to execute right energy conservation strategies and more seriously, lack of a dedicated focus to efficiently use energy resources. This paper presents a methodology that can induce rapid deployment and implementation of a customized EEP. The methodology requires to embed the EEP into the Operation Excellence Model (OEM), a well structured organization’ management framework model as defined by European Foundation of Quality Management (EFQM). Since OEM is company-wide initiative, therefore it can be a perfect vehicle to drive EEP in reaching maturity. Through a successful case study, this methodology has proven to drastically improve the implementation pace of EEP and drive tremendous reduction in energy consumption as well as GHG emissions.