Understanding the Importance of Gas Production Scorecard

Operating a gas production company may mean billions and billions of profit. With its high profitability, however, also come the insurmountable risks of losing the investment. Often times, venturing into the industry of gas production takes sheer gut, determination and strong will above all other types of investments. There is one kind of investment, though, that most entrepreneurs have failed to consider -- a factor that not only spells the difference between losing and profiting, but may also cause massive employment threat and business partnership loss. This investment has become the driving force of most oil companies that are now listed in the Fortune 500. Get to know more about the gas production scorecard, an asset one can not afford to do without.The scorecard for gas production is best described by its name, a system or method of tracking the performance of an organization based on nature of business, primary goals and key areas of operation. Scorecards for companies vary from business to business. But for a gas producer, there are typically three key areas where the system is principally focusing on. These three aspects are: employee heath and safety, environmental health and safety and operation. It is important that all areas should be covered by the performance management system. Otherwise, the wellbeing of the company, the workforce and the integrity of its owners will be put into jeopardy.Before elaborating on the three key areas of the gas scorecard system, it is best to completely understand the underlying principles behind such system. Think of scorecards as the tally sheet or score boards used in baseball or any other sports. The purpose of such is very obvious. It is meant to give the spectators, the coaches and, of course, the players themselves an idea on how far they have gone playing. The scores do not mean anything until the end of the game is declared. But until then, the players must be aware of their performance. If they are way behind their opponents, they assess the situation with their coach and implement strategies, change plans or even do drastic measures to turn the tables. The scores do not assure them of certain success, but it becomes their driving force.Scorecards in a gas business are pretty much like that. Gas companies sometimes tend to be very lax in their operation, not minding over production volume and the impact on environment. This is why this type of performance management system has now become a standard implementation in the gas industry.The environmental health and safety aspect generally includes indicators that have something to do with social responsibility such as greenhouse emission levels, number of oil spillage and intensity of energy consumption. The operational aspect covers indicators like gas transmission volumes, number of employees, pipeline length and delivery frequency. While, the employee health and safety area umbrellas such important man power concerns like number of absences caused by work-related illnesses, number of accidents during work or increase of productivity after training.The number of potential indicators grows as the operation expands. But as this happens, the risks are also amplified.  Tomorrow is fine, but today is the right time to get your company a gas production scorecard system.