On-Track Budgets for Fast Regulatory Approval

Q: What is the best moment for a company to start applying Resource Energy Solutions’ software applications?

 A: When oil prices were below US$70/b, companies were not as concerned with the adoption of new technologies and the digital revolution. Current low prices and competing energy resources have amplified the importance of utilizing technology and digital information in real time. Stricter regulatory compliance at all stages of well operations and pipelines to mitigate risk are driving operators to be more proactive. Deploying cutting-edge technologies at the outset can help companies to achieve this goal. RES’ AFE Manager, Wellman Next Gen, Midstream Manager and TORC software solutions will help companies to cost-effectively manage their operations.

Q: What are the advantages of using such software versus using Excel?

A: In the era of the current oil market, stricter regulatory compliance requirements and threats from competing energy sources, using Excel to run oil and gas operations is like going back in time. Excel simply cannot handle the explosion of data and its transformation to actionable intelligence in real time. The time to incorporate business intelligence technologies based on artificial intelligence, data science, IoT and predictive modeling tools for sustaining their business is now. Benefits of deploying these technologies include improved data gathering, data analysis, better decision-making, automated alerts and dashboards at your fingertips, which are all things you cannot get with Excel. Our solutions are more intuitive and we design them with more computational intelligence for alerts and notifications. The amount of information exploded by three or four times in the last two years and for the next couple of years this growth will continue. This creates a demand for more innovative data collection, analysis and management solutions.

Q: What are the most important technological innovations that you are seeing in the oil and gas industry in Mexico?

A: There are more solutions regarding automation of data and the analysis of information. The companies in Mexico are increasingly using business intelligence and analytical tools. With new players coming on board there will be a focus on technologies related to operations data management. We are starting to see more awareness of IoT devices, sensors and data-gathering systems in the market. The problem is the slow pace of the adoption of innovation in the entire industry.

Q: Do you have any example of your data-management systems contributing to the bottom line of a client?

A: With our well data-management solutions our clients have seen increases in revenue and reduced expenses based on their activity. We create operational efficiencies through the automation of data entry, reporting and manipulation of data, saving upwards of US$500,000 a year. 

Another example is a case study we did in Indonesia with our budget-management solution, which is being used to manage US$26 billion a year in spending. All the operators use our software to track and submit their budgets. Our systems are contributing to an increase in production, as has been noted by the chairman of SKK Migas, the Indonesian upstream regulatory entity. Because of the streamlined process, cooperation between the operators and the regulatory agency is easier. We see an opportunity for a similar system here in Mexico.

Q: How does your Total Operation, Reporting & Control application contribute to your clients’ bottom line?

A: This application provides the highest level of well integrity, by proactively managing all well operations and well-related regulatory compliance activities in real time. Operators are notified of the work that they still have to do, and what is past due. This can require a large team when done internally. Our software ensure timely and cost-effective management of all well operations, well integrity, mitigation of risks, and submission and review of compliance requirements.