“Rip and replace” is a phrase that instantly conjures an emotional response for software users long accustomed to their workflow on legacy systems. For the C-suite, the prospect of a long software implementation process and the associated CapEx is completely avoidable if the status quo still works, i.e., if it ain’t broke, don’t fix it. This mindset explains why so many E&Ps rely on 30+ year old volumetrics technology.
Every year, oil & gas teams kick the volumetrics software can down the road instead of ripping and replacing older systems that are complicated to maintain with modern, faster, flexible, and scalable solutions. Upgrading existing systems is an alternative path, yet in oil & gas volumetrics, measurement, and production accounting, an upgrade is often seen as just as disruptive and expensive. The fact is, your legacy volumetrics software might just work indefinitely but if you are looking to scale up your assets and respond to evolving market forces with agility, then a rip and replace or upgrade is what will set your team up for growth.
Volumetrics is an energy company’s cash register; however, most operators cannot say with 100% confidence that they know exactly how many dollar bills, quarters, and dimes are in it at any given moment, else there would be no need for pervasive prior period adjustments to interest owners. Your choice of field data capture, measurement, and production accounting are the determining factors in volume reliability and how long it takes for data to flow from the field into your back office.
A steady flow of mergers and acquisitions is only adding more volumetrics complexity, such as integrating an acquired oil & gas company’s production accounting system with the buyer’s and navigating the many pitfalls of switching software. Indeed, volumetrics is a strategic asset that can define M&A success, underscoring the need to build up digital skillsets as consolidation increases. Oil & gas companies are also entering the energy transition where hydrocarbons remain crucial among a mix of new types of volumes to measure and account for, including geothermal, wind, and solar. With that said, now is actually the perfect time to begin your volumetrics digital transformation journey.
Volumetrics software implementation doesn’t have to be disruptive. Stonebridge’s approach to volumetrics software selection simplifies and accelerates digital transformation through our EnBalance advisory. What customers find so valuable about our evaluation and implementation process is that it empowers their team with the technology needed to unleash greater productivity and ensure timely volume accuracy without the distraction of managing software deployment directly with vendors.
Keeping your volumetrics engine running smoothly and accurately booking revenue amidst M&A and the other market forces shaping our industry requires a longer term partnership to provide lookback analysis and continuously calibrate your tech, processes, and people. That’s why EnBalance provides the follow on services your team needs, including periodic assessments and key performance indicators, technology and systems integration health checks, ongoing training, application support, and administration of your digital ecosystem.
In the digital oilfield, software is just a cost of doing business and no where is your choice of technology more important to your production accounting and bottom line than volumetrics. This cost is just a fraction of the volumes you will measure with increased certainty and those who act now to modernize their volumetrics software ecosystem are better positioned to keep pace with M&A and grow in the energy transition.
So, why wait? Our EnBalance advisory, reusable IP, and project accelerators seamlessly manage the complexity for you while shrinking project timelines and costs. We can even reconcile licenses and renegotiate fees with your vendors to shrink costs further.