8 critical points of integration for oil & gas operations
TRANSCRIPT
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8 CRITICAL POINTS OF INTEGRATIONfor Oil & Gas Operations
Presentation © 2015 Total Stream Systems, LLC
Introduction
In any oil & gas operation, stakeholders and contributors alike are impacted by the flow of information. Visual access to information needs to be readily available for the planning, execution, and success of all projects and endeavors.
Without a solid strategy to keep information properly connected, getting one’s company to work with a proper focus on the assets can be a difficult task.We’ve compiled some key points of integration that enable a harmonious flow of information through the entirety an operations activity cycle.
Presentation © 2015 Total Stream Systems, LLC
Have an Asset (Well/Facility) Master
#1
It is critical for all information elements to be tied to the same source (a single source of truth for all aspects of a well header).
The Asset Master should be the starting point for all facilities and wells being tracked throughout the operational cycle. This should include all attributes that are critical for report writing in every segment of the operation.
Presentation © 2015 Total Stream Systems, LLCPresentation © 2015 Total Stream Systems, LLC
It should also should have the ability to tie AFE numbers to the financial system and collect daily project cost information from drilling and well work systems against that same baseline chart of accounts. The AFE system should be able to differentiate between drilling costs, completion costs, LOE Costs, facility costs, tangibles and intangibles.
AFE System Should Have the Same Chart of Accounts as the Financial System
#2
Presentation © 2015 Total Stream Systems, LLC
This is so that the schedule always reflects appropriately scheduled costs to be incurred. This integration point will give greater insight to anticipated costs than simply using the forecast. A schedule tends to track the realities of executing on a plan closer than the plan itself.
Rig Schedule Should Tie to the Well Master and AFE System
#3
Presentation © 2015 Total Stream Systems, LLC
Every asset requires equipment to produce oil and gas (compressors, pumping units, separators, tanks, meters, etc.). Those items are often transferred from an inventory yard to an asset (and vice versa) and have financial implications in their management. Ensure that your equipment system of management always ties to a single Asset Master and your equipment catalog ties appropriately to financial accounting.
Equipment Management System Should Tie to a Single Asset Master and Financial System
#4
Presentation © 2015 Total Stream Systems, LLC
And the cost capture on those activities should always tie to the financial system via the AFEs set forth for each project.
Daily Drilling, Completion, and Facility Activity Should Tie to the Well Master
#5
Presentation © 2015 Total Stream Systems, LLC
It should also be capable of allocations that can be sent to accounting for processing on a monthly basis. All daily data capture should support the monthly data capture, which in turn should support the accounting and regulatory reporting processes.
Production Daily and Monthly Data Should Always Tie to the Well Master
#6
Presentation © 2015 Total Stream Systems, LLC
Your reports need to be readily available and easy to send to the decision-makers that have influence on the profitability of the company. Sometimes, even distributing to the pumper level of the company is desirable, so that the assets a person or group is responsible for can have easily viewable financial scorecards.
Profit/Loss Reporting Should Be Easily Distributable
#7
Presentation © 2015 Total Stream Systems, LLC
A cross-reference to land records for every producing asset can result in significant savings from a lease management perspective . (Shut-in reports, etc.)
Producing Assets Should Tie to Land Records
#8
Presentation © 2015 Total Stream Systems, LLC
Conclusion
There is no doubt, and studies verify, that those who employ integrated data management strategies reap the benefits of timely accessibility to key information. By acting upon these strategies, they also enjoy greater insights that lead to profitability.
GAIN INSIGHTS THAT WILL MAXIMIZE YOUR PRODUCTION AND OPERATIONS.
Our staff of experienced professionals is happy to consult with you about data management practices and solutions. Feel free to contact us with any questions you may have.
888-554-5777
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