All companies, both big and small, in the oil and gas industry produce massive amounts of production, operational, and accounting data. Historically, some data was collected and analyzed and decisions were based only on what was readily available.
Today, innovative information technology allows oil and gas companies to easily collect and analyze everything they need to make decisions that will keep them profitable and efficient.
Operators have expressed that having innovative, integrated solutions like PetroBase Pro have changed the way they look at and approach their business. Being prepared is a strength, especially during uncertain times.
Although this all sounds well and good, we know that new technology can be a bit intimidating for some. In this blog, we will discuss how oil and gas data management works and how it can be used to improve business processes.
How Oil and Gas Data Management Works and Who Has it Right
Data Management Systems operate by collecting and organizing data based on the needs of the company. Simply stated, these systems collect, prepare and distribute the information necessary for the company operations to be carried out and for corresponding management and control activities.
Where is Data Collected?
Before we really dig in, let’s talk briefly about the two areas where data will be collected: in office and in the field.
Field data is collected by a field personnel i.e. production foremen, technicians or pumpers. They gather individual pieces of information on an oil and gas well pertaining to its operation and production.
The pieces of data collected here could include, but is not limited to:
Production fluid levels
Wellhead measurements i.e. tubing pressure and casing pressure
Gas meter measurements
Oil tank gauges
Office Data is usually collected by accountants, geologists, engineers, and office support staff.
The data collected here could include, but is not limited to:
Expense and revenue information
High-level analysis resulting in recommendations
How the Data is Organized
Most operators currently have a mixture of systems. Data may be entered in spreadsheets while other pieces of important information will be filed away. Handwritten notes may also exist on a well log or dropped in a file. Even though this is the norm, it does not make this method ideal.
Here are common ways oil and gas companies manage their data in the industry:
Operators who store well information, production, and expense/revenue data in physical well files.
Those with physical well files run into issues when it comes time to do any type of analysis or research. They find themselves having to look through a file cabinet, locate a specific (possibly poorly labeled) manilla folder, shuffle through papers, check with the pumper for current production rates, etc. and sometimes, the information they need hasn’t been recorded
2. Operators who store well information in pdfs and have spreadsheets for production and expense/revenue data.
This is definitely a step up from point number 1 but you can still run into problems with this method of data organization. Having different pieces of data digitally stored does allow the information to be readily available to a greater number of people. However, similar to the operator with a physical well file, when a project is started on a well where research and analysis needs to be performed, it can require a significant amount of time to locate the necessary pieces of information.. Some data may also still be in physical files waiting to be updated in a spreadsheet or out-of-date.
3. Operators who use some level of database software and digital well files, but haven’t centralized their data.
These operators are close to where they need to be and could be collecting all the right pieces of information at the right time. However, if the data they are collecting is decentralized because production is found in one system and the expense/revenue data is only available to the accountant then rigorous cross-analysis cannot be performed without manually moving the data into a spreadsheet or another tool.
4. Operators who have been able to centralizeall data aspects into a single application like PetroBase Pro.
Streamlined data flow and ease of access is where these operators find hidden treasure. They save time, money, and energy by having all of their data organized in one place. Doing more for less. The playing field is ever-shifting, but the goals remain the same…optimize production and reduce costs.
What to Look for in a Centralized Data Management System
What you want to find is a system that can be your primary source of data. For example, our system allows production to be collected with a daily gauge application. We can also incorporate 3rd party systems and customized so you have everything you need from production, accounting, and operational data in one place. Customizations are necessary since every operator’s data collection methods and final requirements are different.
A system should be able to talk to or transfer data out to other systems such as Petra, Geographix, PHDWin, Powertools, etc. This again will streamline and eliminate multiple handling of the same piece of data and make the technological transition easier.
The system should also allow company-wide sharing so that multiple people can assist in contributing information to the system as a whole. Data will flow from pumpers, foremen, engineers, geologists, and support personnel. With the right system, duplication of effort and multiple handlings of the same data bite will be eliminated.
This type of integrated data management system also removes the risk of losing an important piece of information in a digital or physical file.
Also, the platform should be easy to use. We designed ours to be point and click so anyone can use it to improve their business operations.
How a Centralized Data Management System Can Save Your Business Money
When multiple people handle the same piece of data or have to spend significant amounts of time searching for the data they need, it is inefficient and lowers productivity. Essentially, your data management system should allow you to do more with less, increase productivity, and save you money!
Primary target areas for cost savings include utilities, failures, and chemical expenses.
During price volatility, companies that are streamlined do not panic or worry because they know they have a plan. They are confident that their operations are optimally performing and which particular wells need to be addressed during a crash.
New technology can seem intimidating but if you work with the right data management solutions team, it doesn’t have to be! We are experts in moving data and perform the heavy lifting. We populate PetroBase Pro with your digital data and write custom code to streamline ongoing integration.
Concerned about employee training? We work directly with our clients to show them how easy the process is to fully embrace.
Click below to learn more about our system or shoot us a message by filling out our contact form.