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The Anatomy of a Process

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Whether an oil and gas company realizes it or not, their ability to grow efficiently is directly related their processes. And further, their processes are directly related to the efficiency of their overall data strategies. Great technology, combined with well thought-out processes, lead to greater performance from assets and greater performance from the teams in place to exploit those assets.

So then, what is the anatomy (or makeup) of a great process?

1. It reduces redundant and costly steps that hinder execution of tasks and performance-tracking of assets.

  • Example 1: A well is defined centrally in an integrated system, so that all subsequent activities and information can be built and communicated throughout the asset team.
  • Example 2: An AFE is started in a centralized AFE system, so that costs and estimates of upcoming asset-based activities can be approved and then measured against capital budgets, estimated field costs, and actual costs being incurred. A seamless integration between field operations and back office accounting.
  • Example 3: A project is created for well activity, and is immediately available for gathering information from the field (in drilling and completing) while tying to the AFE budget to capture and record daily costs against it. That same process then allows for accruals to support accounting efforts immediately.

2. It delivers information when needed, and in the format needed, to spur actions that support asset performance.

  • Example 1: An AFE is created remotely by an engineer to finalize costs for a drilling project, and is then sent to the AFE system for upload and approval, which in turn makes that same AFE available for field cost capture and accounting.
  • Example 2: A pumper input sheet is generated from a system that defines what is needed daily by the pumper. The pumper captures the required daily information on production and sales, as required, and submits daily values. Those values are imported to the centralized system, which in turn uses those values for daily reporting, allocations, and for purchaser statement reconciliation, and ultimately monthly allocations and regulatory reporting.

3. It is clearly understood within a group or company, enabling consistent adherence.

Processes are a critical piece of successful data management, and ultimately of successful personnel. The visibility and accountability of a team to utilize good processes must be present to have successful outcomes. That can mean more effort and emphasis need to be placed on proper training, but ultimately it results in time saved from a reduction in errors, and profits gained from taking proper actions in a timely manner.

Most problems encountered in companies can be traced back to poor processes, or a lack of following good processes that are streamlined to optimize asset performance. Of course, capable technology enables more efficient processes to be put in place (which is where we come in). But regardless of your system(s), effort placed in developing, training, and ensuring compliance of good processes is never time wasted.