The downturn in oil and gas is the worst in 30 years, and oil companies are pressured to be more focused in every detail. Data collected from drilling and production has doubled in the last four years, and the internal struggle to bring all of this information together is a major undertaking for IT departments. The 360° view of integrated data from various systems of O&G operations enables companies to automate simple processes and decisions, and to guide the more difficult ones. Accurate, current information is key in analyzing data and managing assets.
IT departments often spend large amounts of time, energy and resources keeping information from disparate systems working together. The effort to keep systems like production, AFE management, and drilling and wellwork working together becomes a major and sometimes costly initiative within the organization. Integrating these important components with financials and forecasting and planning adds to the complexity.
Many times companies will either build an internal well master hub, or move to outside solutions. While these might be effective, they are not always efficient and always add a layer of cost and resource requirements to any well management solution. The goal of these solutions is to facilitate integration. There are varying levels of success with this hub model. It can be effective if managed well, with solid processes and controls in place to insure the continuing quality of blended information sources for analytics and business intelligence. The challenges of the hub system to integrate are related to time and resource to both get them up and running, and then to sustain the processes surrounding the integration hub to ensure integrity of the information flow.
In other cases, many entities will simply keep disparate sources and force themselves into simply applying greater manpower each month to solve the business intelligence and visibility of asset performance. This, too, is costly and risks valuable insights slipping through the cracks. Confidence in numbers goes down.
The success of any integration effort is directly related to complexity and amount of integration that needs to take place. Risks of failure are significantly reduced the more tightly information is integrated from the core. There will always be integration necessary between accounting and technical aspects of the business, but from the operational perspective, the fewer points of integration necessary, the greater the cost effectiveness and success of the solution. The rewards for good data and reporting are great, whether in exploration, completion, operations, or management, good data improves revenue and brings cost reductions.
Total Asset Manager™ (TAM) reduces the risks associated with integration. TAM’s integrated application suite centers around the assets. The common asset master serves all applications in the operational life-cycle. When an asset (a well, a facility, a tank, a meter, etc.) is entered into TAM, no further process is needed for that information’s use in AFE, drilling, completion, wellwork, production, equipment, or profit-loss reporting. The same source record is used in all the applications. Integration at its best is when information is entered once and utilized in as many functions as is required for the scope of the effort. Data has always been the key to success, and it will continue to be so. The person that spends less time moving and manipulating data and more time analyzing it will come out on top.
TAM’s interface is simple and complete. Each sector of operations in upstream oil and gas is covered: drilling, wellwork, AFE management, material transfer, production P&L, and more. Operators can use one system to run their business with confidence. Our hosted solution gives TAM users a system that can be customized to their needs, and works both for the long haul, or if you are in for a shorter term. Our team has deep experience providing truly integrated data for oil and gas operations.