As oil and gas companies proceed into the new era of digital transformation, the way that they manage their information becomes a centerpiece to the future of their business. In 2016, IDC predicted that by 2019, digital transformation will help Oil & Gas companies cut costs and increase efficiencies by 10-50% and that 40% of all Oil & Gas companies will gain insights from analytics and AI solutions. Yet, here we are and many oil and gas companies still struggle to efficiently manage documents, data and information needed to run a tight ship.
M-Files recently published a whitepaper, 6 Ways Intelligent Information Management Streamlines Oil & Gas Operations, which outlines key areas where oil and gas companies can realize huge efficiencies to the tune of millions of dollars. We wanted to outline and synopsize these six key areas here and encourage anyone in the oil and gas sector to download the whitepaper for the full scope of impact offered by intelligent information management.
In a recent survey of back office employees, M-Files uncovered some startling statistics, including:
- 41% waste over 10 minutes a day searching for the documents and information they need. Of those people, almost half actually spend more than 20 minutes.
- 65% are managing information in more than one location.
- 65% say that information is still managed using paper documents, paper-based processes, and stored in filing cabinets.
- 44% cite that the printing, scanning and hand-signing of documents to be a major challenge to efficiency.
What does that tell us? Information serves as a cornerstone for back office functions like HR, finance and administration. Yet, the way information is accessed and managed presents a barrier to efficient work. An intelligent information management solution for back office presents tremendous productivity gains companywide.
Especially relevant to the European and Asian oil and gas communities is the topic of decommissioning wells: plugging and abandoning wells, and removal of infrastructure. The volume of work associated with decommissioning is growing — with over $80 billion forecasted to be spent removing infrastructure in a safe, environmentally sound and cost-effective way from the North Sea area alone. Even a 1% improvement would be worth millions of dollars over the next ten years just on project management costs, never mind reducing the risk associated with things going wrong.
Asset Management & Transfer
There are aspects of mergers and acquisitions (M&A) that are unique to the oil industry. While traditional M&A applies where one company may acquire another — like the 2016 Shell acquisition of BG Group — it’s also common for a company to acquire individual assets from another. With intelligent information management, the transition is smoother than ever, with efficiency applied towards:
- Combining data repositories
- Eliminating versioning and duplicate data challenges
- A quick transition timeline
In a recent survey of energy sector workers, 65% admit that it’s challenging to find the documents they need on a mobile device. Oil and gas personnel spend an inordinate amount of time in the field in all phases of production. It can be downright disastrous if they don’t have the ability to manage documents from their mobile devices. Information management solutions can make it easy to enable anywhere access from any device.
In a recent Aberdeen Group survey, the three top pressures driving oil and gas companies to focus on compliance carry equal weight.
Key areas where information management systems help oil and gas companies enforce and maintain compliance include:
- Visibility of data
- Process & workflow alignment
- Monitoring compliance
- Data consolidation
To download 6 Ways Intelligent Information Management Streamlines Oil & Gas Operations, click here.