Reducing controllable variance in the wells development process presents a significant opportunity for upstream companies to capture additional value for their shareholders. Controllable variance in the drilling function in an operating company occurs for a variety of reasons and may be observed in longer than necessary cycles, higher costs, suboptimal well performance and safety issues, for example. Most companies pay close attention to the location of the well, the well design and the well budget, but few recognize the controllable variance implications in what I call the "golden interface," the primary point of contact between the operator and the drilling contractor. Through this interface, the massive capital expenditure budget flows and countless operational and spending decisions are made.
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