Strategy: Execute with excellence through rigorous application of our operational excellence and capital stewardship systems and disciplined cost management.
We follow rigorous, systematic processes to ensure that we make disciplined decisions and execute with excellence. Our systems provide the roadmap to operational excellence so that we operate safely, reliably and efficiently. They encourage capital stewardship so that we select and execute the best high-return projects. And they help us control costs so that we remain competitive regardless of the economic environment.
The effectiveness of our processes can be measured in our company's performance metrics—No. 1 among our peer group in total stockholder return over the past five- and 10-year periods and a leader in personal safety and environmental protection.
Operational Excellence
The highly complex nature of our industry demands that we execute with excellence. Our Operational Excellence Management System helps ensure that we do so by following systematic processes across our operations. These include process safety, personal safety and health, environment, reliability, and efficiency.
Safety is our highest priority and a core value. Since 2004, our Days Away From Work Rate and Total Recordable Incident Rate have improved 86 percent and 53 percent, respectively, and we have led our peer group in the Days Away From Work Rate since 2010. Even so, we are not incident-free, and we will not be satisfied until we have zero incidents.
To achieve our goal of zero incidents, we are sharply focused on operational discipline—doing every task the right way every time—and on process safety. We are integrating safety procedures into all facets of our major capital projects—from the design and engineering phases through construction, operations and maintenance. At the same time, we have strengthened our use of stop-work authority. Any individual—employee or contractor—has the authority and is empowered to stop work when any unsafe condition is thought to be present.
We also put the highest priority on protecting the environment. In 2012, we had the fewest number of spills in a decade and one of the lowest spill volumes among our competitors. Since 2009, the number of spills has decreased by approximately 30 percent, and the volume of spills has declined by approximately 70 percent.
Project Resource Company
Our Project Resource Company (PRC) is our center of excellence for selecting major capital projects and developing them safely, on budget and on time. In 2012, it helped oversee much of our record $32.7 billion capital and exploratory budget. The PRC has been recognized by the Engineering and Construction Contracting Association for its leadership in capital project execution.
Posted: April 2013