A fast-growing independent operator focused on the Permian Basin partnered with Stonebridge to lead a corporate-wide digital transformation initiative focused on standardizing the operator’s core operations, from the field to the back office to the C-suite.
The company selected Stonebridge to help achieve the defined objectives of its business transformation strategy, which focused on process optimization and data management best practices. Specific outcomes included:
- IT portfolio planning for the next three years
- Scalable planning, budgeting and scheduling processes and systems
- Optimized land and authority for expenditure (AFE) processes for efficient collaboration and integration between departments
- Future-ready well data management processes and systems
- Streamlined facilities management processes and systems
- Establish cost-cutting measures across the organization with key performance metrics for ongoing cost improvements
- Dashboard reports for consistent reporting at all levels, including AFE, lease operating statements (LOS), production, lease preservation and executive management
The critical first step in the initiative was the completion of a comprehensive digital readiness assessment in which Stonebridge conducted a deep-dive analysis into the operator’s culture, people, processes, and technology. The assessment findings informed the next phase, which focused on laying a digital foundation and closing the gaps on various data and technology issues. The This included process optimization, data optimization, implementation of various line-of-business technologies and automation of well data management.
The roll-out addressed a broad range of business advisory and technology areas, including:
- Digital Data Foundation – Stonebridge ensured that client data is captured correctly in core systems in a consistent way through implementation of new data procedures and the EnerHub Data Quality Module. This advance has increased the maturity of the company’s data governance by using automation to proactively address data quality and improve data integration between applications.
- Process Optimization – Stonebridge worked hand in hand with the client to define new processes around well planning, corporate planning, land and well setup. Processes are now automated around new well setup and maintenance for improved well-creation visibility across the enterprise. Well master data is continually updated through the well lifecycle and synced in subscribing systems via the EnerHub Master Data Module. This process helps the company save significant time by reducing redundant data entries in multiple systems.
- Advanced Analytics and Reporting – Stonebridge deployed a standard well data portal using the EnerHub Energy Portal. Users can now search and look for wells using multi-system hierarchy and maps. In addition, Stonebridge created three executive dashboards, accessible via the Energy Portal and used by multiple departments, for near real-time tracking of key operational metrics, to include:
- Lease Operating Statement (LOS)
- Capital Spend
- Approval for Expenditure (AFE)
- Business Enablement and Change Management – Stonebridge advised the client in defining new organization models and facilitated the rollout of solutions through comprehensive communications and role-based training.
Since the phase-one deployment, the company has achieved measurable operational outcomes, including:
- Easier departmental collaboration and data-driven decision-making via automations across operations, land, production, accounting and corporate planning
- Improved corporate planning metrics and financial models
- 65 percent reduction in staff time spent verifying data
- 20 percent time-savings for searching and consolidating data for monthly reporting
- 90,000 data quality exceptions identified and resolved across land, reservoir, production accounting, and site and well data management systems
- Advanced analytics and executive dashboards designed for upper-level management
The phase-one outcomes were driven by recommendations from a data management assessment Stonebridge performed earlier for the operator. Stonebridge analyzed the company’s enterprise data strategy and existing systems, and identified areas of improvement in business processes, inter-departmental collaboration, system optimization, and data quality and integration. Stonebridge is currently collaborating the client on phase two of the initiative.
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Related content: A Framework for Digital Transformation in Oil and Gas.