Production performance monitoring is an integral part of the operations of oil and gas companies. This monitoring helps identify
bottlenecks in a company's production potential and can generally lead to improved efficiency and profitability. The general approach to
performance monitoring involves mapping all sub-sections of a specific asset that is subsurface (reservoirs and wells), plants (surface facilities),
and export & commercial, and the maximum production potential (MPP) for each sub-section.
The sub-section with the lowest
maximum production potential (LMPP) can be identified as the current production bottleneck for the asset. This means that any production improvement
opportunities for that part of the asset should be prioritized since it currently determines production limits.
If the recorded production from the asset for a given period is less than the LMPP for that period, the difference between both volumes
is the hydrocarbon loss.