Development of industry performance metrics for offshore oil and gas project

Historical records on the performances of global offshore oil and gas (O&G) projects show that most did not meet industry expectations; therefore, there is a significant need to provide an effective evaluation system for offshore O&G projects to identify project deficiencies and improve project performance. Considering their unique characteristics, a set of two-dimensional industry metrics were developed to evaluate offshore O&G projects across five categories: cost, schedule, safety, production, and quantity. The project data and the results of a survey taken by industry experts were used to validate the credibility of the metrics. In addition, the drivers of each metric are discussed or verified with first principle and were confirmed by industry experts. Finally, the practice for using these metrics is recommended. In other words, with the characteristics of offshore O&G projects taken into account, these metrics will be verified so they are perceived as an efficient tool to evaluate project competitiveness and identify gaps for project performance improvement.