🇦🇺Australia

Capacity Loss from Procurement Delays

3 verified sources

Definition

Procurement delays from global sourcing and logistics lead to idle oilfield equipment, directly impacting operational capacity.

Key Findings

  • Financial Impact: AUD 5,000 - 20,000 per day in lost production from idle equipment
  • Frequency: During equipment overhaul or replacement cycles
  • Root Cause: Manual inventory and logistics management

Why This Matters

The Pitch: Oil extraction operators in Australia 🇦🇺 forfeit AUD 10,000+ daily from idle rigs due to procurement drags. Automated logistics tracking cuts this loss.

Affected Stakeholders

Operations Managers, Drilling Supervisors

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Cost Overruns in Equipment Procurement

AUD 100,000 - 1M+ per project in overruns from inefficient sourcing and rush procurement

Decision Errors in Vendor Selection

AUD 50,000 - 500,000 per procurement event in excess costs from poor decisions

Work Program Non-Compliance

AUD 500,000-2M per unmet key object (e.g., exploratory well costs)

Permit Application Delays

AUD 100,000+ per month in idle rig costs during 3-month approval delays

Idle Drilling Equipment

AUD 50,000-200,000 per day in idle equipment costs during approval waits

Environmental Non-Compliance Fines

AUD 10,000+ fines per breach (typical statutory minimum for environmental regulation violations); project delays costing AUD 50,000+/month in idle rigs.

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