HOUSTON, Texas — Data Gumbo, the trusted industrial blockchain network, today announced that it enables real-time lease operating expenses (LOE) for oil & gas operators. By using validated field operating data to trigger automated payments based on pre-agreed terms, real-time LOE enables operators to access accurate, real-time information to continuously access financial visibility, an industry first.
Based on the power of GumboNet™, the company’s industrial blockchain network, real-time LOE opens the door for operators to match contractual terms without human interface, instead of relying on field estimates to book accruals while expenses are stuck in paper tickets or invoice mode. Real-time LOE brings unparalleled transactional transparency and an immediacy that provides the ability to comprehensively digest variable well costs, as often as daily.
Data Gumbo will host a webinar, “Empowering Real-Time LOE,” featuring participants Alan Carnrite, CEO, The Carnrite Group, an energy and industrial sector management consulting firm and Andrew Bruce, CEO, Data Gumbo. Details and registration available here.
“Real-time LOE is revolutionary. Operators are able to combine all of the disparate threads that go into production in one centralized location to see expenses as they happen,” said Andrew Bruce, CEO, Data Gumbo. “There is tremendous value in knowing to the penny exactly what actual expenditures are instead of finding out 90 days later. Data Gumbo empowers operators to allocate resources and manage wells based on accurate, real-time field readings to know where they stand instead of trying to drive their business in the rearview mirror.”
The current methods for managing LOEs for commodity production, chemical consumption, water haulage and disposal, fuel, power, labor, rental equipment and other well service expenses are time and resource-intensive utilizing paper trails and manual tickets that average 60 to 90 days to work through field approvals and accounting systems processes. Prone to delays, disputes and complicated reconciliations, operators lack visibility to tie spend to production and profitability.
LOE reporting has long been reliant on estimates of events and services as well, instead of verifiable accurate, real-time data. GumboNet executes smart contracts based on existing operational field data sources, harvesting exact information and measurements to supply continuous visibility into actual spend. By enabling a reduction in friction between counterparties, eliminating inefficiencies and automating transactional events, GumboNet enhances financial statements to deliver costs as they unfold. This helps operators identify waste and areas of spend that can be reduced as action occurs, not after the fact.
“Right now, operators are in a position to adapt digital perspectives to speed payment processes, eradicate paper invoices and tickets, and achieve a desirable competitive differentiator: real-time LOE visibility,” said Alan Carnrite, CEO, Carnrite Group. “Data Gumbo sets up operators to achieve a huge economic payoff of improved cash flow and terms, and attract better investors.”
About Data Gumbo
Data Gumbo provides transactional certainty for tomorrow’s industrial leaders through GumboNet™, a massively interconnected industrial blockchain network. With integrated real-time capabilities that power, automate and execute smart contracts, our network reduces contract leakage, frees up working capital, enables real-time cash and financial management and delivers provenance with unprecedented speed, accuracy, visibility and transparency. Headquartered in Houston, Texas, Data Gumbo has a subsidiary office in Stavanger, Norway. To date, the company has received equity funding with Saudi Aramco Energy Ventures, the venture subsidiary of Saudi Aramco, and Equinor Technology Ventures, the venture subsidiary of Equinor, Norway’s leading energy operator. For more information, visit www.datagumbo.com or follow on LinkedIn, @DataGumbo and Facebook.
Oil and gas operations are commonly found in remote locations far from company headquarters. Now, it's possible to monitor pump operations, collate and analyze seismic data, and track employees around the world from almost anywhere. Whether employees are in the office or in the field, the internet and related applications enable a greater multidirectional flow of information – and control – than ever before.