The oil and gas field services industry, like the broader energy industry it serves, faces a time of dramatic challenge and change. Technological innovation, supply-and-demand, demographic shifts, environmental pressures, geopolitical relationships, social influences and the emergence of new competitors are transforming and reshaping the industry. Oil and gas field services face regulatory, financial and scientific challenges far more complex than those of most industries.
Achieving operational efficiency is mandatory for success in today’s business environment. The new normal calls for radical shifts in behavior—the ability for the oil and gas field services industry to provide the equipment and services used in the exploration for an extraction of oil and natural gas demands new responses.
The good news is that the industry has demonstrated a tremendous ability to adapt to challenges; however, in a 2013 study of 3,700 oil and gas services professionals, three key issues were identified as critical to their success: safety, utilization and compliance.
Saving lives, preventing injuries and protecting the health of workers tops the list. The correct Health, Safety and Environmental (HSE) conditions are essential to maintain and improve daily operating conditions in the field.
Certainly, not having visibility into the status and location of assets and equipment has sizeable cost implications, can eat into margins and create a difficult environment in which to operate. Without visibility, it is not easy to know if items are on a job site, in transit or sitting idle. Another important factor in maximizing utilization is preventing downtime of people and assets. Equipment failures due to
improper maintenance, a lack of on-hand spare parts or the lack of proper scheduling/logistics can lead to very costly decreases in utilization.
Managing compliance is fundamental in oil and gas field services. However, it is increasingly difficult as the volume of documents and asset information becomes overwhelming. The price of compliance can consume considerable resources, and the failure to comply presents significant risks – including damaged reputations, huge fines, loss of shareholder confidence and possibly business collapse.
In the increasingly complex and rapidly expanding oilfield services industry, how do you manage these and other critical business issues? One answer is Enterprise Resource Planning (ERP). ERP is a discipline that can easily be maximized by customizable standard application software that integrates business solutions for the core processes and the main administration functions of an enterprise. A smart an intuitive ERP system should provide many benefits, including: enhanced productivity, flexibility and responsiveness; better material acquisition and inventory controls; cost reductions, reduced lead time and greater visibility of the business and trends. Implementing a new or replacement ERP system usually starts with a need to address multiple difficulties:
• Inventory is tough to determine
• Downtime due to improperly maintained equipment
• Difficulty in determining the profitability of each job
• Inability to spot trends in a timely fashion
• Customer satisfaction is faltering
• Invoices often include incorrect or missing line items
• Customers are slow to pay
• A disconnect between the field staff, warehouse and back office staff
• Lack of adherence to safety checklists
• Forecasts are based more on guesswork than solid figures
Pronto Software has a global, next generation ERP solution that provides a single source of information across the enterprise and automates processes that previously had to be performed manually or semi-manually. It makes businesses more efficient and helps prepare for future. Pronto’s flagship enterprise system, Pronto Xi, is a fully integrated solution that can be tailored to suit the unique needs of the oil and gas field services industry. Pronto Xi offers flexible, scalable performance and a strong base from which to achieve an accelerated return on investment.
While it’s true that the oil and gas field services industry is experiencing significant expansion and challenges, finding ways to manage health, safety and environmental conditions; intelligent forecasting and visibility; compliance and regulatory complexity and accounting and financial issues requires the best available end-to-end ERP solution. The reward of correctly selecting and using a best-in-class ERP will quickly manifest by avoiding just one day of downtime. Pronto Software’s Pronto Xi is just such a solution—one which enables oil and gas field service companies to have greater control, increased growth and profitability and reduced costs and risks.
Oil and gas companies are regularly faced with many industry-specific issues to overcome. Such issues, including exploration and drilling, are often complex and intricate processes with many unique challenges to overcome. Data analytics can play a massive part in streamlining some of the most fundamental operations that are involved in the oil and gas industry.