In a recent feature in the Independent Petroleum Association of America’s (IPAA) Winter 2013 magazine covering oil technology, one of the key points highlighted is that although oil and gas companies are successfully searching for and implementing technology that will make hydraulic fracturing profitable in the long run, there is a significant gap between that and the oil and gas software they have at their disposal.
We have covered this topic previously, specifically in the case of using data to improve well production, and how important oil and gas software is for optimizing industry growth. In the IPAA article, the author remarked,
“In running a business in a rapidly changing environment, companies have found that they must ensure that financial and management tools that were adequate for a more stable environment are also flexible enough to adapt to novel changes.”
In our experience, many companies in the industry do not have the tools to do this effectively and they are losing out in terms of getting the most both from their physical assets and their information assets as well. This second factor is extremely important to not overlook, because for many businesses it can mean getting more out of what they are already doing. As the article goes on to highlight,
“Attention must be given to selecting and optimizing technologies and procedures for asset management, cost control, regulatory compliance, and risk management that can adapt, allowing management to maintain a current, transparent view of operational performance and to make adjustments in a timely and effective manner.”
In order to react appropriately to these shifting data points, oil and gas companies require business intelligence that show decision makers what they need to know, when they need to know it. If you can’t say that about your own information flow, it may be time for a change!
For more on this topic, check out our two part series on using oil and gas software to improve business intelligence…