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Lean Manufacturing Drives Performance and Innovation at Hess

 


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Embracing a Culture of Continuous Improvement to Deliver Top-Quartile Business Results

Hess has earned a reputation for top-quartile performance in unconventional oil and gas production and offshore drilling and project delivery.  Our performance is driven by a distinctive Lean culture that equips and empowers people at every level to solve problems and spot opportunities for continuous improvement and innovation.


Hess began implementing Lean principles in our Bakken operations in 2010This has since been expanded to our Exploration, Developments, Drilling and Completions and Production activities, as well as key support functions.

The result? Here are just a few examples:

  • Bakken drilling and completion costs reduced by 60% -- from $11.4 million per well in 2011 to $4.5 million in Q1 2017
  • Zero nonproductive time on an exploratory well offshore West Africa
  • A major Stampede platform component - the blast wall - was completed two months earlier and with 50 percent fewer man hours than typical projects in the Gulf of Mexico.
  • 13 million-man hours completed without a recordable incident at the North Malay Basin development

Hess in the Media

Hess: The Oracle of Lean in Oil and Gas

After learning about the company’s process of continuous improvement, Oil and Gas Investor called Hess “the oracle of lean in oil and gas.”  “What Lean also does is it really drives defects out of your business,“ says Hess COO Greg Hill. “The operations need to be very focused on reliability. What that has allowed us to do is to increase to over 1,500 operated wells now with effectively no additional operations staff by eliminating inefficiency.”