As we all know, the Oil & Gas industry is in a volatile state and as an oil and gas company, having insight into your data is vital in this market.  During exploration, you rely on as much data as possible in order to make heavy investments. You know that if your analysis of the data is not accurate, it can cause some very expensive mistakes.

Technology has spread throughout the oil and gas industry. The result is that oil and gas companies are producing massive amounts of data. Sensors have been attached to every aspect of drilling, production, and equipment. So with all of this data, you would think that oil and gas companies are using the intelligence uncovered to enhance business operations. You’d be wrong.

After the drilling has begun there is a massive drop-off in analytics. A recent study by consulting firm McKinsey & Company found that of the 30,000 sensors found on an oil rig, only 1 percent of that data is examined—mostly for the detection and control of anomalies.

Could the data collected by oil and gas companies be better utilized with modern analytics tools? McKinsey’s assessment suggests that the accumulated data can be used to optimize processes, enhance asset maintenance, and utilize predictive analysis throughout the production process. Bain & Company agrees. They estimate that oil and gas companies can use data analytics to improve production by 6% to 8% at a minimum.

Oil and Gas Production and Big Data

A natural progression for data analytics is to go from exploration to production. It also makes sense because you already have access to thousands of data points. And with oil prices where they are, a modest 6% productivity gain could mean the difference between operating profitably or at a loss.  Data analytics does not stop at the oil rig or well. There are other areas that can benefit from analyzing the data available. The key is to start with a business problem and think of ways that your data can help you solve it.

A natural progression for data analytics is to go from exploration to production. It also makes sense because you already have access to thousands of data points. And with oil prices where they are, a modest 6% productivity gain could mean the difference between operating profitably or at a loss.  Data analytics does not stop at the oil rig or well. There are other areas that can benefit from analyzing the data available. The key is to start with a business problem and think of ways that your data can help you solve it.

Asset Maintenance – Data Analytics for Your Machines and Field Equipment

Improved data insights can help increase the return on investment on all of your assets. This includes everything from your pipeline to your trucks. You can determine that a piece of equipment requires maintenance before there is a failure. You can also maximize utilization by knowing where and how every asset is utilized. The only limit is the data you collect.

How the Home Office Benefits from Enhanced Analytics

Sales, marketing, finance, and operations generally contain data silos. It is common that these systems do not communicate with each other very easily. This presents a challenge when you are trying to make business decisions as many of those departments are inter-dependent.  Organizations spend massive amounts of time and effort trying to access, compile, and understand their data. This is where a data analytics tool can save you time and help you make more informed decisions. You can start to ask questions of your data regardless of the source.

From refineries and retail outlets to markets and machinery, a data analytics tool enables you to analyze your current business and helps make predictions based on different scenarios. What effects do seasonal changes have with distribution efficiencies? How do short-term market trends impact production projections? With a powerful analytics tool, you’re able to ask questions of your data that have a direct impact on the future of your business.

The Future of Analytics in Oil and Gas

The oil and gas industry will stand at the forefront of the new age of business analytics. Data analysis has always played a major role in the industry and this role will only increase in the coming years.  It is estimated that a typical organization only uses 12% of their data. That is true across most industries. This is rapidly changing. In 2015, the number of data driven initiatives increased 125%. And on average, those enterprises spent $13.8M on those initiatives. With the advent of the Internet of Things, those numbers are sure to increase through 2016 and beyond.

Next Step

The next step is to select a platform that will allow you to make sense of massive amounts of data that you are collecting today. If you would like to discuss your data analytics project, contact us or schedule a meeting with one of our expert oil & gas consultants.