Overcoming Challenges in the Oil and Gas Industry

The entire world is going digital, but the Oil and Gas industry still seems to be lagging back in areas. According to Deloitte, Oil and Gas industry is placed lowest on the Digital Maturity scale, 1.3 out of 10, compared to all other sectors. But going digital is not just a matter of trend now, but evolving, increasing efficiency, and scaling a business in general.

Operating within a traditional and conventional mindset is no longer a viable resource for upstream Oil and Gas. They need to re-imagine and change how operations are conducted and managed across the entire value chain. Digitalization will affect employees' productivity, onsite visits, safety, streamline of communications, the flow of information, and even lower environmental footprint.

Main challenges in everyday work as well as in the whole organization are:

Challenge 1 – Keeping everyone safe during simultaneous operations

Challenge 2 – Keeping projects on time and under budget

Challenge 3 – Making an informed decision through the whole lifecycle

Challenge 4 – Uninterrupted flow of information

Challenge 5 – Keeping an eye on the whole project with accurate information

Challenge 1 – Keeping everyone safe during simultaneous operations

Maintenance must be done regularly, but because of production loss, not the whole asset is shut in most of the cases, but just a part of it. In order to save time and work efficiently and speedily, many operations are happening in close proximity. Risk can increase when two conflicting activities interact unpredictably.

For a safer work environment and reducing mistakes and accidents, SIMOPS can help. It is proven to increase offshore productivity by up to 25%.

For a deep dive into this topic, check out our blog Overcoming Challenges in the Oil and Gas industry: Keeping Everyone Safe During SIMOPS

Challenge 2 – Keeping projects on time and under budget

It's hard to keep projects on time and under budget when you are unsure whether your team has the tools, equipment, materials, and information they need. This way, there is no way to know if everything is done as it should, and if efficiency and productivity are at its highest level.

Tracking everything on paper is no longer a solution. There are just too many data buried in an archive and not accessible. Automation is the answer to keeping projects on time and under budget. All necessary data can be found in the cloud-based system, and hand-held devices and QR codes are used to control the processes. Material Manager offers these solutions and has helped oil and gas companies worldwide  to manage their assets.

For a deep dive into this topic, check out our blog Overcoming Challenges in the Oil and Gas Industry: Keeping Projects On Time and Under Budget

Challenge 3 – Making an informed decision through the whole lifecycle

By making the right decision in a lifecycle, you can reduce total installation costs by up to 10%. Smart management of your labor, equipment, and materials is impossible to achieve with the old way of organizing. On projects, there are generally lots of people involved, there are all kinds of tools they need to get the job done (your equipment), and lastly, there are all the components, ingredient parts, and raw materials required to put the project together (your materials).

The modern way of dealing with all of this information is Work Packs. The software will allow you to deliver a project on schedule and within budget. If you don't start using Work Packs, you will get lost in all that information and make decisions that might have catastrophic consequences.

For a deep dive into this topic, check out our blog Overcoming Challenges in the Oil and Gas Industry: Making Informed Decisions Throughout the Entire Project Lifecycle. 

Challenge 4 – Uninterrupted flow of information

During construction, commissioning and handover, you are aiming for 100% control of your project. The success of project management is determined by the involvement of all stakeholders in the project. But tracking everything can be hard if the information is not updated and all in the same place. With this being a case, many wrong decisions can be made, affecting safety, efficiency, cost, and many more.

Digital transformation is more than needed in this case. Software solutions like Completions can assure stakeholders has the right information across all project phases to make the right decision. They will be working according to one method, ensuring that the process of reporting and handover is straightforward and well managed.

For a deep dive into this topic, check out our blog Overcoming Challenges in the Oil and Gas Industry: Ensuring Uninterrupted Flow of Information

Challenge 5 – Keeping an eye on the whole project with accurate information

Oil and Gas companies are challenged with working in an environment where small delays or overruns in projects can significantly impact success. With competing demands on most projects, tracking progress at various levels – from teams to disciplines to areas to whole projects – is a common challenge.

No matter the size of the project, it should be continuously tracked, updated and kept under control. For this info to be up to date software like Progress Tracking is a great solution! Getting a clear view of progress provides the focus for informed decision making to steer the project effectively.

For a deep dive into this topic, check out our blog Overcoming Challenges in the Oil and Gas Industry: Keeping the Whole Project with Accurate Information.

Conclusion:

Digitalization is knocking on all of our doors and the fact is we can't stop it, and to postpone it puts you behind your competitors. You might think it will be hard and complicated to move away from historical systems, but on the other hand it will make future targets more achievable and transform your business.

The key is to make sure you have the right digital transformation partners. MODS are proud to work on the ground, offshore and onshore as a partner in technology with our customers. We are engineers building solutions for engineers.

Want to know more about digital transformation? Go check out our Digital transformation - everything you need to know.

Let us help you with your digitalization challenges. with our experts to assess the situation.