Updated: How Data Validation and Integration Can Help Upstream Firms Operate More Efficiently and Lower Expenses04/27/2020
Accurate, connected data enables every department across the enterprise to focus on profit-boosting activities
In times of high or low oil prices, it is paramount for upstream oil and gas companies to understand the importance of data and its effect on operational goals. With vast amounts of data being produced and collected daily, the key for exploration and production companies is to analyze and optimize all this rich information. In this blog, we’ll discuss the importance of data validation and data integration.
Depending on one’s department within an operator, the type and source of data one works with naturally varies. That said, the most important kind of data all operators rely on is production data because it plays a critical role in every company’s success and growth. Multiple key performance indicators in an exploration and production company rely on production data from well forecasts to revenue, even cash projections.
Data validation is key if you make critical decisions based on available data. Data validation is all about having processes in place that ensure that the correct data is being recorded and reported from the field through the back office. There are multiple approaches for ensuring the correctness of your production data:
- Instrumentation checks
- Monitors that alert you of variances
- Configured tolerances
- Simple reports or dashboards with anomalies
Implementing best practices to capture issues at the source is key to ensuring that the data being collected (which is fundamentally necessary to understanding the health of your assets and business) is correct.
Data integration is the flow of production and production-related data through all of an operator’s disciplines and systems, from engineering and accounting to legal and the C-suite. As important as validation of the source data itself is implementing necessary checks that the various integration points between disparate systems and their reporting tools is occurring without error. A robust data integration process allows for the data that is disseminated across systems to be fundamentally sound for each department’s corporate objectives and enables everyone to perform their segmented tasks with the highest precision.
Putting the Two Together
Why are data validation and data integration so important? Essentially, each department will spend more time on profit-maximizing actions (increasing capital, decreasing costs) and less time on cross-checking data and reports. In other words, where attention goes, energy flows and results show. Especially in these periods of low crude oil prices, we’re seeing more and more pressure being applied to become more efficient, while maximizing revenue and optimizing production. Data validation and data integration can help E&P companies do just that. By understanding the value that quality data brings to the table, operators are organically changing their firms while also changing the industry.
We'll be talking a lot more about data and how it can be used to maximize business performance in upcoming blog posts. In the meantime, check out our other blogs focused on production operations, and click the banner below to read an in-depth guide on choosing the right production system for your business.