There is a paradigm shift going on in the oil and gas industry. Even though some perceive the industry to be old fashioned and outdated, a lot of companies use information technology to build a safer, greener and more productive industry. The enhancement of operations done in the oilfield with the help of information technology is commonly referred to as the digital oilfield. In a survey done among the CIO’s of oil companies, 73.7 per cent replied that one of their top priorities for 2013 was to implement mobile technology. The only thing that have a higher priority is cyber security, which is perceived to be a massive threat for the industry. The oil and gas industry can gain huge advantages from implementing a digital oilfield platform like SEE Forge and save millions of dollars by doing so.
Big companies are wasting millions of dollars.
Many companies are still using conventional paper based reporting systems. With these paper based reporting systems vast amounts of time is being wasted. When an employee fill out a form, it will have to be re-entered several times. Our case study shows us that in a huge oil company will have five delivery points that means the data have to be re-entered four times. SEE Forge makes the forms and audits digital. The solution enables the field workers to fill out their forms using their phones and tablets rather than pen and paper. With a digital oilfield solution like SEE Forge the data will be available for everyone with access once an employee plots in the data. The oil company can save 117 minutes for each safety hazard observation that is delivered through SEE Forge instead of by paper. If we estimate that 52.000 forms are delivered annually, companies can save $ 14.4 million annual just on the time used on these forms. By doing things more efficiency with the help of digital oilfield solutions workers can use their time on more meaningful tasks.
The digital oilfield allow you to base your decisions on real time and big data instead of your gut feeling.
When information float smoother through an organization, it enables managers and co-workers to make decisions faster. If a hazard, error, defect or spill is detected the person responsible can be contacted right away. While with the conventional paper based system less hazards are reported and when reported it might take days before the right person tries to mitigate them. The potential savings might be enormous. As of February 2014 British Petroleum had paid in total $ 42.7 billion after the Deepwater Horizon accident. Luckily, not every accident is as big as Deepwater Horizon. Companies can still save millions every year just by mitigating minor hazards. The fine from breaking the law is from 10.000 dollar and up. In addition comes the cost of stalling a project.
The digital oilfield software also offers an opportunity for gathering vast amount of data. The access to processed data will give the CEO’s insight on what is actually going on in their company and make it a lot easier to make good decisions. In the longer run, stored data can be analyzed with big data tools, giving you opportunities for huge insights that will enhance their strategic abilities.
Big companies have many intangible assets attached to their reputation and brand. When an accident happens, a lot of damage is done to these intangible assets. In addition, if a company uses an old outdated system they might come off as unprofessional and lose contracts. Contracts in the oil and gas industry are potentially worth billions of dollars. When there is a big competition, using digital oilfield solutions might just give you the competitive edge you need to score huge contracts.
Do you dare to compete without a being a part of the digital oilfield-revolution?
With the switch from paper based reporting systems to digital oilfield solutions, companies can save millions of dollars by doing things more efficiently, mitigate more hazards and win contracts by coming off as more professional. In addition to this, it enhances their strategic abilities. 73.7 per cent of CIO’s in oil and gas companies in the US have the implementation of mobile technology as one of their top priorities. The question is; do you dare to compete without?