TULSA, Okla., Oct. 27, 2015 – Master data management (MDM) strategies for oil and gas companies typically focus on the data itself, as though creating the “golden record” is MDM’s primary objective. Data, however, always has a business context animated by interconnected processes and functions that extend throughout the well lifecycle (WLC). Mastering MDM in oil and gas depends on the orchestration of process, function and data in the WLC, which is the central thesis of a just-published article by Stonebridge Consulting’s William “BJ” Cummings, Executive Director of ENERHUB.
The article, “The Golden Record Is Not Enough: The Case for Data Orchestration,” appears in the 4Q issue of Foundations, the official journal of the Professional Petroleum Data Management (PPDM) Association.
“Creating the golden record isn’t enough,” Cummings writes. “A viable MDM strategy is more than loading data and creating a single version of the truth. It means actually doing something with the golden record to create value for the business. For that reason, data orchestration throughout the WLC is the next step in mastering MDM in upstream oil and gas.”
Cummings defines data orchestration as a process that allows master data attributes to be updated across systems in close to real time. Orchestration is where the value of having the golden record is generated—in time saved in maintaining and entering data, in ensuring data quality, and in the ability to make better decisions based on the best data.
The article outlines the quantifiable business benefits that can be realized when master data is validated on a record-by-record basis across systems. “Critical decisions are based on master data,” Cummings points out. “And yet companies spend an enormous amount of time trying to figure out why reports don’t match or why a well was reported as producing to the regulators but not in the financials, as an example. With an MDM strategy based on data orchestration, these inconsistencies can be remedied and better decisions made.”
What’s more, Cummings maintains, an MDM strategy that orchestrates process, function and data across the WLC has a direct, positive impact on the bottom line. “It will save hundreds of thousands of dollars,” he says. And there are other advantages that have the potential to create greater value. In our current market conditions, we are seeing a wave of acquisitions. Having your own house in order (with MDM driven by data orchestration) allows you to take advantage of opportunities because it is faster and easier to integrate acquired assets and incorporate new data systems.”
To access the article “The Golden Record Is Not Enough: The Case for Data Orchestration” in the 4Q 2015 issue of Foundations, please visit www.ppdm.org/publications. If you are not a PPDM member, you can sign up for a free guest account on the PPDM website, which will allow you to access all PPDM publications. You also can email PPDM at foundations@PPDM.org to request a hard copy (shipping & handling charges may apply).
About Stonebridge Consulting
Stonebridge Consulting provides business advisory and technology consulting services that help oil and gas companies produce hydrocarbons efficiently and safely, optimize volumes, increase margins, and maximize returns. Headquartered in Tulsa and with offices in Houston, Oklahoma City, Dallas, Denver and Pune, India, we serve the oil and gas industry exclusively, with an emphasis on upstream, midstream, downstream and oilfield services companies focused on resource plays in North America. More information is available at www.sbconsulting.com.