Running an oilfield is a difficult job. Many say it’s the toughest job on the planet. How do you ensure profitable operations given the rapid changes in the oil and gas market? How do you figure out which wells to prioritize for further investment to maximize cash flow? How do you determine when your upstream logistics need adjustment?
These are tough questions, but theyre ones that are easier to answer with a comprehensive digital energy network. Much of the oil and gas industry is moving to comprehensive digital energy networks. Why? Because they improve the connectivity of in the oilfield. They do this by allowing for automation of the field through sensors, analytics, and mobile computing. They adapt to rapidly changing market conditions by adjusting many aspects of their operations based on a stable, standardize digital core.
There are a number of ways to deal with today’s rapidly shifting market. Some are successful. Many are not. Connected oilfields see serious rewards.
What kind of rewards? They see 5% increases in their production. They see a 10% reduction in their lease operating expenses. They see a 25% reduction in their well downtime. They see as high as a 50% reduction in their rate loss deferments. They see much safer workplaces that operate beyond mere compliance. They see a leaner, more flexible business. They see how to best make decisions with changes in the market. They see lower overhead and higher profitability.
How can you ensure your company remains at the top of the oil and gas market? By staying ahead of the automation and trends in oilfield connectivity.
Lack of connectivity leads to losses
When a company doesn’t have connectivity across their oilfields, it can’t respond quickly to rapid change. It can’t create automatic remedies to events. It can’t automatically rank these events by the business impact.
Instead, you need to have someone involved in every step of the process. This can cause serious problems when opportunities are missed. It can cause losses when issues are not addressed in a timely manner. Scarce resources are not properly assigned. The appropriate resources may be hard to locate. Profitability goes down. Activities must be tracked and confirmed manually.
All these steps require more human intervention. This raises your overhead. It increases your costs. It reduces flexibility in your system. It creates losses as your company is slower to respond to changes.
Limited connectivity loses opportunities
By comparison, companies that invest in connected operations fare much better. They can respond more quickly to change. It has more information available to base decisions on. It has a comprehensive understanding of deferment events across all assets and their business impact. This allows it to be more accurate in its identifying and prioritizing opportunities.
Nonetheless, the company needs to make judgment calls based on experience and the data that is available. If not connected and collaborative, scarce resources may not be properly assigned. Failing to fully integrate a digital energy network can still cause business losses.
A comprehensive digital energy network provides flexibility
When an oil and gas company is fully connected in its oilfield production operations and logistics, it can quickly respond to changes. A comprehensive digital energy network creates an agile, flexible enterprise that is able to make adjustments with minimal human intervention in many cases. The system will automatically create remedies to deferment events based on prior learning and collaboration. The deferment events are ranked by the impact on your business. In most situations, the system creates responses that automate your field interventions. By automating the system, human intervention is needed only in very specific, predetermined situations. Scarce resources are assigned in the best fashion. This helps ensure your business’ profitability over the entire enterprise. The system will automatically identify resources on the business network. It then assigns, tracks, and confirms the assigned activities through your digital energy network.
How integrated systems create true growth
In today’s world, a comprehensive digital energy network can make all the difference. It allows collaboration as never previously seen. It allows automatic dispatching and scheduling of assets. It provides real-time sensor data to determine ultimately the best placement of resources. It visualizes data through GIS. It helps create accurate forecasts to more tightly manage production. It provides secure digital networking for transportation and storage assets. It monitors current and upcoming events to inform critical decision-making. It allows for the best placement of assets across your network.
When your oilfield connectivity is good, your business can boom. But if you don’t invest in a solid digital energy network, you’ll quickly find your company left behind in adverse market conditions.
How do you get the most out of your connected oilfields? By optimizing connectivity for the best-end-to end results. Discover just how great a secure Internet of Things can be for your oil and gas business. At SAP, we develop oil and gas industry solutions for a changing world. Find out how our solutions can make the most of your business today.
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