You might have heard the buzzing phrase “data is the new oil,” originally suggested by Clive Humby in 2006. Not surprisingly, it’s still relevant today, as COVID-19 has revealed the importance of data platforms for energy and utility enterprises. Though the crisis hit us all hard, we’ve noticed a tendency that now defines true business resilience based on our customers’ experience.
Selecting a path of data analysis is just the first step. But it’s also the ability to translate oil and gas data analytics into actionable insights and data-driven decisions that determines industry leaders. So, how can upstream, midstream, and downstream sectors gain competitive advantage through digitalized information management?
5 benefits of big data for oil and gas companies
All energy organizations generate and collect ever-increasing amounts of different data from numerous sources. Analyzing what’s actually useful among those incoming streams is crucial. Why? We all know that business is about numbers, and only proper data management enables you to grow those numbers. It empowers you with unique information that you can leverage to remain on top of your game in all areas of field development.
Better business planning and proactive decision-making
O&G operations are complex and require bulletproof planning with large investments. EY states that companies could unlock over $145 million in profits annually by implementing a coherent data processing model. Thus, timely data analysis across your entire production chain lets you avoid missing out on critical signs. You get crucial field insights that help improve planning for every activity and make better business decisions.
Improved productivity and faster operations
Petroleum companies often struggle with orchestrating a value chain proactively because they lack agility in enterprise data management. Technology that correctly interprets real-time information and transforms it into advanced oil and gas data analytics can optimize well efficiency and accelerate extraction and delivery. A proactive approach to data management helps improve every area from exploration, land management, and drilling to operations, assets performance, and overall productivity.
Predictive maintenance and reduced operating costs
One of the biggest advantages of big data oil and gas analytics is that it facilitates predictive maintenance of your sites 24/7. It opens the door to business resilience by allowing you to monitor vital metrics and collect data from your distributed assets remotely. Being able to anticipate failures prevents your company from downtime and ensures a competitive edge in the long run.
Consequently, production chain governance enhanced with oil and gas data analytics tools reduces your operating costs. You gain comprehensive control and visibility of all equipment and processes. AI/ML algorithms discover areas for improvements, streamline maintenance routines, and predict outcomes. This lets you set up a faster response cycle, effectively addressing potential disruptions.
Inventory optimization: future-proof supply chain
An ability to forecast your assets’ optimization needs can strengthen an entire supply chain and boost its efficiency. By anticipating and responding intelligently, you’ll substantially refine the observability and predictability of your inventory demands. Prescriptive analytics helps maximize resources’ productivity, prevent delays, and automate inventory requests. Hence, big data can increase your revenue through better capacity planning and inventory management.
Better environmental impact and working conditions
The World Resources Institute research revealed that companies need to halve their greenhouse gas emissions by 2030 to reach net-zero targets. This may sound challenging, but with big data, oil and gas enterprises can reduce emissions significantly and establish a safer and more responsible production. Streamlined data management is a way to improve environmental impact by ensuring operational stability and integrity.
With all critical oil and gas data analytics on their portable devices, your team will be better prepared for every field trip. Well, tenders will schedule and monitor most operations remotely, prevent critical incidents, and avoid hazardous situations. It allows you to save expenses by reducing the need for physical land visits.
Now, a reasonable question would be how to start harnessing the full power of big data in oil and gas enterprises?
Diving into data abyss: 4 actions to take
We’ve analyzed decades of our hands-on field expertise to identify essential steps you should take to guarantee the rapid adoption of oil and gas data management and capture the maximum value.
- Select the right tools that save your expenses, not increase them
Look for modern but affordable solutions that collect and analyze field findings 24/7, providing valuable insights. To save costs even further, you can try a Data Management as a Service model . Companies that offer it provide cloud-based, price-for-value platforms that integrate with existing corporate systems quickly and seamlessly. Such oil and gas data analytics software unifies all types of information into one fully transparent and accessible ecosystem.
- From gigabytes to more barrels with big data experts
Seventy-two percent of workers from B2B companies state that managing information flood is one of their top challenges. You’ll need skilled data engineers and scientists able to unlock the potential of big data and prioritize assets. Poor input data should be eliminated to establish mature data management — amateurs can’t do that. So, enhance your team with professionals who will improve your data quality and reinforce governance strategy even for the most challenging business cases.
- Anti-crisis policy: create a cybersecurity shield
In the era of cybercrimes, it’s better to have a well-developed risk mitigation plan to ensure the safety of all data you process. We recommend establishing cutting-edge IT security policies that cover all the aspects of sensitive information disclosure, software usage, liability, and data recovery. Train your staff to follow cybersecurity and BYOD rules. Engage experts to monitor installed platforms, perform protection health checks, and implement the latest trends and tools. If you need assistance, we have a cybersecurity team ready to help you right away.
- Talent development — not letting your employees experience burnout
In EY “Oil and Gas Digital Transformation and the Workforce Survey 2020”, 92 percent of executives named the ability to reskill quickly crucial. You’ll need to help your colleagues adapt to new tools promptly and effortlessly. There can be no cutting corners when it comes to employees’ upskilling . Encouraging them to embrace analytics technologies and enhancing their productivity with proper education is essential.
Business value delivery: the data is coming
We can’t predict the future, but one thing is clear: enterprises will require agile long-term strategies and more informed executive decisions to succeed. Continuous oil and gas data collection with its intelligent analysis and management is the most efficient, holistic approach that provides tangible benefits. Information is power. Take control of your data and lead your company to win the race against the economic toll.