13 Jul The Criticality of Enterprise Asset Management for Oil and Gas Companies
Now more than ever, the Oil & Gas industry needs to focus on accurate data management strategies. The industry is expected to attain immense growth as the future promises new technological possibilities and an increase in demand. Already known to rely on data-driven assets, it’s pivotal for the industry to ensure consistent data cleansing for better decision-making.
Despite the global pandemic, this industry has managed to bring down its loss percentage to mere 8% since April 2021. Oil & Gas companies are looking towards aggressive automation and system integrations for enhancing production efficiency. Companies are resorting to high-performing assets coupled with effective production monitoring strategies for continuous operations and uninterrupted uptimes. As a result, things signify how EAM services are now of paramount importance to this industry.
The Need for Data Optimization and Enhanced Asset Management
Asset management has become the first and foremost priority for Oil & Gas companies. To do that, companies utilize high volumes of data across a vast range of varieties. However, only proper streamlining of data can help the industry manage its data-intensive assets. It’s also essential to know the varied criticalities of Enterprise Asset Management. Data cleansing, optimization, restructuring, and accuracy become crucial aspects of achieving flawless asset management.
Let’s throw some light on the various factors which call for high-quality data management solutions:
Tremendous Increase in Production in 2021 and Beyond
The BRIC nations (Brazil, Russia, India, and China) amongst other fast-growing economies show a greater demand for oil & gas. The average OPEC crude oil production itself is estimated to be 26.9 million barrels per day in 2021. This is all set to increase to 28.7 million barrels per day in 2022! With such high production targets, oil & gas companies would rely more on automation rather than only on human labor. This is where the importance of smart asset management strategies comes into the picture.
Regular maintenance, repairs, and upkeeps straightaway become priorities in such a scenario. Under no circumstances, organizations would want to miss out on the chance to leverage technology and automation. This is possible if and when they can comprehensively maintain accurate asset information so that they can feed the right information to the systems to gather real-time accurate insights.
Technological Advancement and Digitalization of Operations
It has become imminent for Oil & Gas companies to revolutionize their production assets. Massive production targets demand a high degree of digitalization. This, in turn, raises the bar for asset management requisites. Companies need to focus on proper asset deployment and implementation of production-oriented operations to thrive in these tough times.
The enhanced digitalization is a double-edged sword because unstructured and inaccurate data can cause hindrance to the optimal performance of digital systems. Without systematic data structures, digital revolution and data analytics would act as artilleries devoid of any ammo. Hence, to refrain this from happening, Oil & Gas companies need to opt for result-oriented data management solutions.
The Growing Need for Preventive Strategies to Avert Disasters
34% of industrial units spend over 30 hours every week behind scheduled maintenance. That’s because companies are aware of the benefits of regularly reviving an asset’s true potential. For Oil & Gas companies, this isn’t even the biggest of the concerns. Of course, downtimes can cost the company billions, albeit the consequences of an oil spill are much more intense. Even the slightest of data inaccuracies can lead to wrong industrial decisions and mismanagement of assets, which can result in mishaps.
Oil & Gas companies are required to comply with stringent safety guidelines and obviate accidents. Environmental risks are many, solutions are few. The gravity of the situation persisting from oil spills or other accidents at the production facility can be lethal. A company can face litigation risks, penalties from regulatory bodies, and loss of reputation for hindering the environment. Such fiascos and environmental issues can be averted with the help of effective maintenance plans and asset registries. Whenever there are large-scale breakdowns or asset failures, well-structured and up-to-date data can prevail as the timely savior. Companies can manage to take prompt and priceless decisions with the help of precisely maintained and organized data treasuries.
Data management is interlinked with industrial safety and the prevention of unwanted occurrences. It acts as a catalyst that promotes efficacious repair and maintenance of assets. Prevention and maintenance are considered to be the best proactive measures against fatal ecological impact while saving on post-accidental costs. A company can manage to save up to 18% with the help of preventive maintenance. Every dollar spent on precautionary upkeeps and repairs would help companies save up to 5 dollars on other expenditures. Data management solutions can you companies stay safe and secure from adversities while preserving loads of resources.
2021 Means a serious growth recovery for Oil & Gas Industry
In 2021, the Oil & Gas drilling sector recorded total revenue of over $2.1 trillion! This sector comprises companies that are into exploring and developing oil & gas fields. This sector in itself forms 2.2% of the global economy which is expected to cross $93 trillion in 2021.
With such staggering statistics, it’s quite clear how this industry is going to embrace rapid growth in the coming months. Along with growth and expansion, comes a greater pile of data because of asset maximization policies and capital-intensive plant establishments. Oil & gas companies will need to put into place appropriate EAM strategies for their expansion plans to sustain. This is where consistent data cleansing and maintenance techniques can assist the improvisation of the company’s overall asset management.
It’s evident from the aforementioned factors how beneficial and essential it’d be for oil & gas companies to partner with data management specialists. For instance, data quality management experts like Griha Soft are prominently known to address and fulfill data related maintenance requirements for oil & gas companies.
Griha Soft is a leading data management service provider with a proven data management expertise over the years. At Griha Soft, we offer end-to-end solutions for Oil & Gas companies, from the creation of asset registries to maintenance and cleansing of superfluous data. We’re a member of several international organizations for management systems and industry standards. To know more about our wide range of services, contact us today!