Digital Transformation Systems and Data Issues in the Oil and Gas Industry – Yogi Schulz

What systems and data issues can digital transformation resolve or reduce? This article describes multiple issues that digital transformation can attack.

In the previous article, I introduced the digital transformation concept and its benefits for the oil and gas industry. You can read it at this link.

Digital transformation can help many oil and natural gas producers struggling with various systems and data issues that increase costs and risk while reducing net income. Many oil and natural gas producers are successful despite these issues. However, the continuing pressure for cost reductions and competition for capital means these issues have escalated into significant impediments.

The typical systems and data issues include the following.

Too many paper-based, manual processes

Some producers continue to rely heavily on different paper-based, manual processes. Examples include:

1. Management of mineral rights, surface land leases and contracts data.
2. Regulatory approvals of wells, facilities and pipelines.
3. Regional assessments of exploration potential.
4. Performance reports for management.

No integration among IT systems

Some producers operate with limited or no integration among their IT systems. Examples include:

1. Financial systems don’t receive enough data from PA systems.
2. Reporting systems rely heavily on Excel to integrate data.
3. Field operations systems don’t see operating cost data.
4. Land data is not readily available to other disciplines.
5. Engineers rely on public data sources for internal data.

Collaboration struggles

Some producers struggle with employee and partner collaboration. Examples include:

1. Multiple employees can’t work with the same data concurrently.
2. Employees can’t share project data with partners.
3. Electronic connectivity with product and service vendors is limited to email and attachments.
4. Workflow differences undermine collaboration.

Haphazard data management

Some producers work with haphazard data management practices. Examples include:

1. Data has gaps and inconsistencies that require cleanup before real analytical work can begin.
2. Data quality varies from vendor to vendor, such as seismic and well-log vendors.
3. Data quality varies from application to application and from geographic region to region.

Overlapping systems

Some producers operate too much software with overlapping functionality, which is often the result of failure to prune software after mergers. Examples include:

1. AccuMap and geoSCOUT when only one is needed.
2. Multiple electronic document management systems.
3. Multiple field operation systems.
4. Microsoft 365 and Google Docs.
5. OneDrive and iCloud.
6. Multiple subsurface modelling and contouring packages.
7. Multiple seismic data repositories.
8. Multiple brands of data visualization software.

Not modernizing IT systems

Some producers repeatedly defer modernizing IT systems, falsely believing the costs exceed the benefits. Examples include:

1. Failing to rationalize overlapping software packages.
2. Deferring software package upgrades.
3. Not retiring systems with few end-users.

The third article explores applications that offer significant benefits when implementing digital transformation.

About Yogi Schulz

Yogi Schulz is an information technology consultant who works extensively in the petroleum industry to select and implement administrative, operations, and geotechnical systems. He writes regular articles about developments in the energy industry and technology.

You can contact Yogi Schulz through his LinkedIn profile at this link.

 

Share This:

---

More News Articles