Maximizing Oil & Gas Profitability with Energy Data in Balance Part 4 – Now is the Perfect Time for Volumetrics Digital Transformation

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“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. Indeed, I recently sat in the office of a CFO whose production accounting software ran on a first generation Pentium server and used a green, monochrome monitor.

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.

With $100+ WTI oil and $7 Henry Hub gas, E&Ps are flush with windfall profits, making whether or not it’s the right time for a major software implementation a moot point. Volumetrics is your cash register with your choice of field data capture, measurement, and production accounting a determining factor in volume reliability and how long it takes for data to flow from the field into your back office. With that said, now is actually the perfect time to begin your volumetrics digital transformation journey as your profitability under today’s favorable pricing depends on it.

Conversely, lower oil & gas prices are also a great reason to rip and replace or upgrade and embrace newer versions of the software you already use. In the last 2 years we’ve experienced polar opposites of our industry’s super cycles and commodity prices will inevitably settle lower. Which is why a focus on volumetrics technology and best practices is so crucial to capturing every dollar of revenue and minimizing your OpEx.

Software implementation doesn’t have to be disruptive either. In my last blog post I outlined Stonebridge’s approach to volumetrics software selection 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 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.

So, if cost and disruption to your team really aren’t barriers to modernizing your volumetrics software ecosystem, why wait anymore? 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.

That’s it for my 4 part blog series on maximizing oil & gas profitability in the digital oilfield. Be sure to revisit my earlier posts where I delved into why bad data costs oil & gas teams millions, the importance of benchmarking your volumetrics digital maturity, and how our EnBalance software selection process adds value.