This page provides each player with background information.
IT IS THE SAME FOR EACH COLLABORATOR.
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It is currently located 200 miles southwest of New Orleans in 7,100 feet of water. The field consists of four blocks in water depths ranging from 4,000 to 7,500 feet.
Rules of the Game
You must come to agreement in each of the three categories; however, each can have a different value. However, you are required to offer all three metrics at the same time.
You can use any or all of the information in this scenario position paper during your interaction with the other player. Moreover, you can use your personal experience as well as other thoughts to craft your strategy.
Finally, you can exchange any information during this process, including miss-information although you cannot reveal your sheet of performance metrics.
Definition of Performance Metrics
The definition of the Performance Metrics is the same for both Players.
- Production—this is oil and gas Production from the Operator’s (Customer) perspective. Can be expressed as time to First Oil or function of Unplanned Downtime
- Safety Culture—from the Berkley Deepwater Horizon Study Group, “The organization’s safety culture has major effects on maintenance of appropriate balances between production and protection, and consequently, on the effectiveness of barriers to prevent failures major effects on maintenance of appropriate balances between production and protection, and consequently, on the effectiveness of barriers to prevent failures.”
- Revenue/Service Cost—this is the Cost of the energy or engineering services from the Service Provider. From the Service Provider’s perspective this is Revenue
Each Player’s Goal is to Maximize their Set of Performance Metrics.
The term, “Maximize their Set or Portfolio of Performance Metrics” means to obtain the Best Overall. It does NOT mean that the Player is to necessarily attain the highest number in all but that the Sum of the three is the highest.
Economists call this the Efficiency Frontier because the set of optimal portfolios (three in this case) with the highest expected return for a defined level of risk. Other portfolios are sub-optimal when the risk-reward curve is higher. In other words, the risk is too high for the rate of return expected.
As stated, the goal of each player is Maximize their Set or Portfolio of Performance Metrics. Accomplishing this will lead to greater organizational performance and individual rewards such as bonuses and promotions.
Definition of Safety Culture
For purposes of this game, the following definition of Safety Culture, aka Culture of Safety from BSEE is, “The core values and behaviors of all members of an organization that reflect a commitment to conduct business in a manner that protects people and the environment.” Nine safety culture characteristics are associated with this definition, and outlined below,
Leadership Commitment to Safety Values and Actions. Leaders demonstrate a commitment to safety and environmental stewardship in their decisions and behaviors;
Hazard Identification and Risk Management. Issues potentially impacting safety and environmental stewardship are promptly identified, fully evaluated, and promptly addressed or corrected commensurate with their significance;
Personal Accountability. All individuals take personal responsibility for process and personal safety, as well as environmental stewardship;
Work Processes. The process of planning and controlling work activities is implemented so that safety and environmental stewardship are maintained while ensuring the correct equipment for the correct work;
Continuous Improvement. Opportunities to learn about ways to ensure safety and environmental stewardship are sought out and implemented; Environment for Raising Concerns. A work environment is maintained where personnel feel free to raise safety and environmental concerns without fear of retaliation, intimidation, harassment, or discrimination;
Effective Safety and Environmental Communication. Communications maintain a focus on safety and environmental stewardship;
Respectful Work Environment. Trust and respect permeate the organization with a focus on teamwork and collaboration; and
Inquiring Attitude. Individuals avoid complacency and continuously consider and review existing conditions and activities in order to identify discrepancies that might result in error or inappropriate action.