The Critical Successful Factors of Productivity Growth in the Offshore Oil Production Sector

Data envelopment analysis (DEA) is a non-parametric mathematical optimization technique commonly used to analyze productivity of similar decision making units (DMUs) example, in the same industry or branches in the same company. This method has a comparative advantage over other performance measurement methods, such as ratio analysis, because it enables multiple quantitative and qualitative measures. When analyzing data of changes in productivity for more than one period, it becomes more problematic as this can be associated with changes other than efficiency, e.g., scale and technological changes. This can be particularly important in industries or companies where dramatic technological changes may have occurred in a short time. This paper investigates Total Factor Productivity Growth (TFPG) using DEA-based Malmquist productivity index. In this paper, Malmquist index break down into efficiency changes and technological changes. Also, this paper in the case study evaluates productivity growth and finds out the critical successful factors of productivity growth and performance improvement on the four major and important oil fields that are in the Lavan oil sector which is administered by Iranian Offshore Oil Company (IOOC).

Keywords:

Data Envelopment Analysis (DEA) , Total Factor Productivity Growth (TFPG) , Malmquist productivity index , Oil Fields , critical successful factors