Oil & Gas: C-level Perspectives
Mary Gorczynski 1100006B54 firstname.lastname@example.org | | Tags:  maximo tivoli service-management eam asset-management oil-and-gas
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Today's entry comes from Terry Ray.
A couple of months back, I discussed my view on the role and importance of corporate assets from various C-level perspectives. Today, I would like to offer a perspective specific to the oil & gas industry.
As oil and gas companies continue to meet the demand growth in worldwide consumption, they must focus on ways to increase supply. They must continue to seek more cost-effective exploration and production while maintaining high safety, health, and environmental standards. At the same time, the oil and gas industry faces other key challenges and uncertainties such as: price instability in major producing countries, an aging infrastructure and workforce, globalization, customer preference change, and technological progress.
The oil and gas industry has made steady progress in improving operations through better data capture, visualization, analysis, and automation. Yet, many improvement opportunities exist in real-time production surveillance, drilling and completion optimization, supply-chain and materials management and oil field equipment reliability and maintenance.
When we talk about operational excellence we are talking about how we can continuously improve the level of service at lower costs. This includes physical assets and equipment, human capital and how one uses the data and information to make better operational decisions. To do this, one needs better operational intelligence – which is a function of data and information quality, delivered across the right timescale.
Delivering quality operational information at the wrong time or across the wrong timescale does not improve decision making. Without quality data, one does not have quality information or operational intelligence. Therefore, it is reasonable to conclude that if one wants to achieve Operational Excellence, you need quality data, transformed into information based on the operating context (operating history, engineering and maintenance experience, market conditions, regulatory context, etc..) and delivering that information at the right time, across the right timescale – from real time operational decisions to longer term capital asset acquisition or divestiture decisions.
Basically, Operational Excellence is about information enabling event-driven decisions – tactical and long term, across multiple domains and process workflows from geo-science, drilling, production, transportation and refining operations.
Today, supporting systems are scattered with hundreds of applications, many that are custom developed, having propagated redundant and inconsistent data stores and silos across engineering, geo-science and operational domains making it extremely difficult to access and effectively use data or information.
Most oil and gas professionals spend more than half of their time searching for, assembling and formatting data instead of analyzing in order to make better operational decisions. An opportunity exists to combine the industry’s best monitoring and instrumentation capabilities with data mining and predictive analytics – providing real-time operational intelligence resulting in improved decision making.
The key priorities that will enable Operational Excellence and improve operational intelligence are standardization, convergence, and collaboration. In my next blog, I will ‘drill deeper’ into each of these priorities.
Until next time…………