Courtney Richardson, Oxy
Examine the structured development and implementation of the Quality Assurance and Quality Control (QAQC) Team at Oxy, emphasizing the team's strategic impact on reducing operational expenditures (OPEX). The QAQC team delivers targeted training in sucker rod maintenance and handling to more than 100 workover crews, conducts systematic audits of pump shops across Oxy's U.S. assets, and actively manages warranty claims to recover costs from equipment failures. The team is also responsible for managing the region's most advanced reclamation programs for production tubing and sucker rods in the Permian Basin. Each month, over 800,000 feet of tubing are systematically processed through three centralized hubs, utilizing rigorous inspection and quality assurance protocols to ensure operational integrity and maximize asset recovery.
Serving as a crucial link between field operations and suppliers, the team's responsibilities include performing detailed root cause analyses of failures, organizing independent laboratory testing and assessments, and working closely with Oxy's Supply Chain Management (SCM) to strengthen contract terms. These efforts help limit Oxy's risk exposure from poor-quality materials and manufacturing flaws.
Insights gained from failure analyses often lead to the creation of Standard Operating Procedures (SOPs) that are embedded into commercial agreements, enabling enforceable quality standards. The QAQC team also leverages warranty clauses to recover funds, ensuring that wells with working interest partners maintain transparent and accurate financial records. Ensuring adherence to both industry standards and Oxy-specific requirements at tubing reclamation facilities is a primary mandate for the QAQC team. The implementation and oversight of Oxy's proprietary inspection protocols at these plants have resulted in substantial annual cost savings, amounting to millions of dollars for the organization. Routine pump shop audits at each site enable ongoing vendor performance monitoring, supporting the identification and resolution of recurring issues.
This paper explores how the QAQC team's audit processes have transformed business operations and supplier qualification criteria. By presenting real-world case studies and detailed failure analysis reports, we demonstrate how these practices have enhanced Oxy's artificial lift systems and offer practical recommendations for implementing similar value-driven strategies in your own organization.