Author: Bari Gbosi
With low oil prices, gone is the luxury of “close enough” development planning.
The time that used to be spent passing spreadsheets between departments, pulling data from disparate systems, and meetings where people would argue the validity of a plan then agree to meet again later to consider another option – that time, and the inaccuracy of plans produced that way, is no longer affordable (if it ever was). Today that inefficiency might move a field from thin profit margins to a negative rate of return.
A core theme at the upcoming ATCE conference in Houston is decision quality in upstream projects, including how to promote better collaboration, reduce project delays, and avoid value erosion.
Why is decision quality a hot topic? Because despite efforts in the last decade to modernize the energy industry, when things are booming, profits provide the luxury of inefficient planning. You wouldn’t hear it in keynote addresses but when oil is at $80 a barrel or more, measure once cut twice was often seen as okay. So many companies were ok with status quo gaps like:
- Different departments and individual having their own data
- Planning groups chasing information from various teams, then again chasing updates
- Data quality issues like non-standardized well names causing data gaps or analysis errors
- Manual, isolated planning– draft plans not tied into current data, schedule or economics
- Routinely inaccurate forecasting
Amidst the current price crunch, fewer people are under more pressure to make decisions accurately and adapt rapidly. Demand for “right” decisions are high even as the volume of assets and data they manage might be growing as companies consolidate. Boards and shareholders are watching like hawks.
The good news is that necessity draws people to make essential change. What’s essential to energy companies? According to a large independent with operations in the Marcellus, “Bringing together multiple people and multiple sources of data in a unified system that has decline, reserves information, cost data, and can do planning – that’s where the value lies.”
Here are some essential needs that 3esi-Enersight serves:
Multiple people have access to the same data.
Integration: Central system of record, multiple roles have access
- Company-wide information in a centralized database plus data flow between 3esi-Enersight and other software used for well data, production forecasts, production history, accounting, scheduling and other analysis.
- Latest Estimates: 3esi-Enersight easily pulls and versions from systems of record, allowing for an up to date view of a well as the production history is updated or when the well is reforecasted. Multiple versions of a plan can be created through time, modifying with actual information as it becomes available. Comparisons can be made between any versions, creating a view of forecast accuracy through time
Productive meetings and more accountability.
Collaboration: Visual plan and asset view, shared cross-company
- Visualize complete data shared for meaningful decisions across teams
- “Monday Morning” Meetings: During plan review meetings with team that manages capex, opex and scheduling pull up 3esi-Enersight and talk through structure of field – confirm if plan elements and assumptions are right. Make on the fly changes to various elements of the plan and view impacts. Everyone is committed and accountable to the same plan
Seamless planning process.
Consolidation: Coordinated, continuous informed decision-making
- Planners and multiple stakeholders contribute to plans based on current data, real schedules and economics, for faster reviews and approvals. Over time, plans can be adapted and updates shared immediately.
- Planning efficiency: Many planning processes rely on manual back and forth workflows. A typical workflow in some companies is for the planning department to come up with a plan. The midstream team requests for an adjustment to that plan based on facility sizing constraints and the plan goes back to the planning group. Quite often, the adjustment wouldn’t quite achieve the goal so there’d be a request for a tweak – and back to the planner again. The relay and lags could take weeks, all the while the data the original plan was based on is shifting. With 3esi-Enersight, plans are integrated with current data, activity scheduling and real economics so they stay accurate over time. For facility planning, midstream groups can run their own models, propose to planner the exact facility needs and the plans are developed more rapidly.
3esi-Enersight helps make complex production decisions profitable at current low prices, and amplifies profits when oil’s at higher prices. Let us demonstrate why we’re the industry’s most trusted integrated petroleum planning software providing complete decision information continuously across teams. Request a demo.
Other recommended reading:
- 5 Planning Scenarios Top E&P Companies Are Running With Oil Prices Low
- Consol Use Case: 3esi-Enersight Integration A Corporate Wide Solution
About the author
Bari Gbosi is a Senior Consultant with 3esi-Enersight Corporation operating out of Houston, US. A petroleum engineer with experience in production, operations and economics, Bari helps E&P companies to make the right economic decisions utilizing experience gained working in every active US shale play as well as SAGD and LNG projects. Bari is skilled in data management and combining disparate streams of data to better evaluate oil and gas assets.
3esi-Enersight Corporation provides planning software and expertise for the modern, complex oil and gas industry. 3esi-Enersight petroleum planning software supports the most comprehensive integrated planning workflow in the industry and helps upstream petroleum producers make competitive and cost-effective decisions at every stage of their business. Founded in 2003, 3esi-Enersight Corporation operates from offices in the United States, Canada, and Australia, and serves more than 50 oil and gas producers globally. Visit us at www.3esi-enersight.com.