Session ID:

VS2-05

n Intermediate

New Product Development Outside Manufacturing
Lean NPD principles apply as much to the process of finding and developing oil reservoirs as they do to the manufacturing industry – Focus on the underlying principles, not the tools

In the typical manufacturing environment, New Product Development is the life blood of the company. If new products are not being brought to market on a routine interval and if the company is not able to quickly respond to shifts in the market, the long-term success of the company is at risk. It is no different in the oil industry, if new oil reservoirs are not being discovered and developed on a routine interval, and if new recovery techniques are not being developed to get better recovery efficiency on existing reservoirs, the long-term success of the company is at risk. In this presentation you will see how Aera Energy LLC has applied Lean New Product Development principles to this process to make a step-change in performance.

Aera Energy LLC (Aera), a California limited liability company, is one of California’s largest oil and gas producers, accounting for approximately 30% of the state’s production. With headquarters in Bakersfield, most of Aera’s production is centered in the San Joaquin Valley. The company also has oilfield operations in the L.A. Basin and in Ventura and Monterey Counties. Aera produces approximately 185,000 barrels of oil and 67 million cubic feet of natural gas each day and has proved oil and gas reserves equivalent to more than 900 million barrels of oil.

Greg Williams, Lean Advisor

Greg Williams is an internal Lean Advisor for Aera Energy LLC. He started his 27 year career in the Oil & Gas industry as an Operator in the oil field (digging ditches, maintaining oil wells, injectors, and steam generators, operating water & oil dehydration facilities, etc.) Over the years he has worked in various supervisory capacities in Operations and Engineering.

Greg has spent the last ten years as an internal consultant working with all levels of the organization to create a culture of Continuous Improvement - helping to drive the Lean transition for the past five years. He provides Lean training for executive teams, engineering teams, service organizations, operations teams, and the supplier community. Greg has also facilitated the re-design of key business and engineering processes as well as facilitating kaizen events throughout the organization.