The Case for Data: How Data Validation and Integration Can Help Upstream Firms Operate More Efficiently and Lower Expenses04/27/2016
Accurate, connected data enables every department across the enterprise to focus on profit-boosting activities
In the computer age, 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.
So why is data so important? That depends on who you ask. Depending on one’s department within an operator, data has a different meaning. The most important kind of data all operators rely on is production data, which plays a critical role in every company’s success and growth.
Data validation is just as important as the data itself. Data validation is all about having processes in place that ensure that the correct data is being recorded in the field. Instrumentation checks, mobile task reminders, and predetermined set points are some of the methods that are used to ensure that the information being collected is the correct data ... data that’s fundamentally necessary to the growth of the business.
Data integration is the flow of production and production-related data through all the operator’s disciplines, from engineering and accounting to legal and the C-suite. The process of data integration allows the data collected to be fundamentally sound for each department’s corporate objectives and enables everyone to perform their segmented tasks with the highest precision.
Now let’s put it all together: Why are data validation and data integration so important? To meet all departmental objectives, every cog in the motor must receive the correct amount of lubrication, if you will. Essentially, each department will spend more time on profit-maximizing actions and less time on cross-checking the data points they receive. Especially in these periods of low crude oil prices, we’re seeing more and more pressure being applied to become more efficient and maximize revenue and production. Data validation and data integration help E&P companies do just that.
Can data validation and data integration be improved? This is a topic that’s still growing within the industry. Firms are beginning to understand the value that IT and database management bring to their businesses. By having industry-specific software applications that check each data point against a predetermined set point, along with subject matter experts dedicated to these value-generating streams, firms are able to strategically change their corporate goals by having their departments focus on other profit-maximizing behavior.
The focus for operators now and going forward is to do much more with less. This means they should focus on the 20% that brings in the most returns. By aligning the entire corporate vision and adapting to the times with the internal and external resources already in place, firms can exceed Board expectations with less CAPEX. As we are reading daily, firms are exceeding expectations by cutting expenditures in some areas and redirecting these funds to projects that are increasing earnings and boosting share price.
Where attention goes, energy flows and results show. During these periods of low prices, firms are beginning to give attention to those profit-boosting actions that maximize capital and minimize costs. 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 this customer-success webinar to see how Energen Resources, a leading producer in the Permian Basin, is using real-time production data to boost its production volumes and run more efficient operations.