Operators

Benchmarking

byEnverus

Benchmarking

Benchmarking in the energy industry refers to the process of comparing a company’s operational or financial performance against industry standards, peer groups or best practices. It helps identify inefficiencies, optimize resource utilization, reduce costs and improve sustainability. Benchmarking can cover metrics such as production efficiency, emissions intensity, operating expenses and capital productivity.
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Frequently Asked Questions

Why is benchmarking important for energy operators?

Benchmarking enables operators to pinpoint areas of underperformance, set realistic improvement targets and maintain competitiveness. By comparing against peers or industry norms, companies can prioritize cost-reduction strategies, enhance ESG compliance and improve operational efficiency. All factors are critical in volatile commodity markets where capital efficiency is rewarded.

What role does technology play in benchmarking?

Advanced analytics, AI-driven modeling and cloud-based platforms streamline data collection and analysis. Technology enables real-time performance tracking, predictive insights and automated reporting, making benchmarking more accurate and actionable across large asset portfolios.

What types of benchmarking are most relevant in oil and gas?

Common types include operational benchmarking (comparing drilling cycle times, completion efficiency), financial benchmarking (opex, capex per BOE), and ESG benchmarking (emissions intensity, water usage). Each type provides insights into different aspects of performance, helping operators align with industry best practices and investor expectations.

How do companies ensure accurate benchmarking results?

Accuracy depends on using normalized data, consistent definitions and comparable peer groups. Many firms leverage third-party platforms like Enverus PRISM® to aggregate and standardize data across operators. This ensures apples-to-apples comparisons and reduces bias, enabling actionable insights for strategic planning.

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