Seven steps to clean, trusted and aligned well data.
Is your data ready to help you make the big decisions? “Data and analytics inputs” (37%) just nudged out “my own experience and intuition” (33%) when energy executives were asked as part of PWC’s 2014 Big Decisions survey on what they relied most for the last big decision they made.
But, what about the little decisions? The ones that add up and either create value or contribute to waste, primarily in the area of operational efficiency? It’s important to think about this aspect of decision making too.
In a recent article by Forbes magazine, Tom Morgan, Analyst and Corporate Counsel at Drillinginfo, credits the present stamina of the unconventional plays to efficiency gains. These gains have been as much as 25% and are altering the profitability thresholds for productive wells, changing many of the beliefs on which today’s headlines are focused.
A well’s profitability is driven by multiple variables, including well location, lease terms, number of wells drilled, uptime, partners, resources, and so on. These attributes are monitored and combined to ensure a well reaches its full productive potential. But how do you know if the information you’re depending on is ready to provide the answers you need when you need them?
Given that an unconventional well’s productivity declines after the first 2 years, every decision made in this short timeframe puts the well’s profitability at risk. Approaching bad or incomplete data as a ‘cost of doing business’ can mean millions of dollars in unnecessary waste – per well.
The best strategic and operational decisions stem from clean, trusted, and aligned data. Kudos to the upstream, unconventional teams that are leading the way to exploiting how data is used in the oil & gas industry. The most effective way to ensure your data is decision ready is to adopt these seven steps:
- Integrate well information. Bring together fragmented data you expect to be consistent across systems but isn’t.
- Evaluate the quality of data. Make sure the information is accurate and complete. If it isn’t, you can see what needs to be fixed.
- De-duplicate it. Automatically identify duplicate records and reconcile them into a single well profile.
- Enrich it. Enhance well profiles with 3rd party data such as state/local and IHS data.
- Validate it. Ensure you can identify the correct well when you need to. (It’s harder than it sounds.)
- Relate it. See relationships between wells, assets, associates, suppliers and partners, and the projects they’re associated with.
- Deliver it. Fuel business and analytical applications with clean, consistent and connected well information.
As O&G companies look to save on IT costs, they need to look to areas that add value or decrease other costs over the long term. Chris Niven, IDC analyst, sums it up best: “Oil and gas companies need to spend their investments wisely to help them become agile and operationally efficient.”
On Tuesday, May 12, during InformaticaWorld 2015, Devon Energy, a Fortune 500 company, will join other industry innovators during MDM Day. Devon will share how they’re using data virtualization to streamline their data processes and gain efficiencies and insights in the process. Be sure to register here.