Contact Us
Articles Tagged with

oil and gas

Home / oil and gas
Oil and Gas

4 Best Practices for Oil Production Allocation

As valuable team members, production accountants handle vast amounts of data derived from oil wells and gas lines. Company leaders then use this collected data to determine an entire operation’s overall production. However, since this data comes from a wide variety of sources and industry experts use different allocation techniques for different cases analysis can become complicated and time-consuming. Fortunately, accountants can utilize a few process upgrades and best practices to significantly reduce their manual processes, improve productivity, and increase accuracy.

Accounting for oil production

On the surface, calculating oil allocation is a simple equation: Beginning Inventory (BI) + Production – Sales = Ending Inventory. However, a few prohibitive factors make the calculation more complex in execution. For example, though meters for collecting, analyzing, and reporting on oil data exist, many are too expensive to install or maintain. As a result, operators often rely on manual mathematical models to calculate production from each well or line. However, the information they derive can become inaccurate, especially as parts degrade over the life of each well or line. Unless industry insiders design their production allocation processes with adaptability in mind, these calculations will inevitably be less than practical. Here are four best practices to help manage operations productively and gain a competitive advantage:

  1. Consult your schematics. Whether you’re in oil or gas, it’s important you consult your schematics — layouts of all your tanks and how they flow — as your first step. Many production accountants do not consider schematics because they are mainly designed by and for managers and engineers. However, schematics can help accountants allocate accurately by allowing them to visualize oil flow. Schematics can also alert production accountants to important changes such as a tank having been moved.
  2. Implement a process for run ticket reconciliation. Each time a transporter arrives to pick up oil, he or she submits a run ticket to report how much oil she or he removes. However, compiling and reconciling these tickets at the end of each month can be a tedious process for production accountants, especially if they do it manually. Automated workflows can significantly increase data integrity and improve efficiencies for production accountants each month.
  3. Leverage new technologies. Implementing new systems and updated technologies can help streamline operations. For example, a sensor that can detect and send information from the tank strapping factory directly to your production allocation application can help you reduce errors and alert production accountants to potential loss during reconciliation early in the process.
  4. Choose the right application. The days of Excel may seem long gone, but many production accountants still utilize spreadsheet formats to organize information. Similar but more up-to-date applications like P2 Merrick offer built-in workflows and adaptors. These applications help automate processes such as reconciling run tickets and come with built-in validations.

Production accountants and company leaders alike can greatly benefit by working with a partner who understands how to properly allocate oil production. Don’t be afraid to leverage new technology: Production allocation applications can reduce manual efforts, increase accuracy, and improve data integrity. This, in turn, can save production accountants both time and hassles.

Business leaders have a lot to consider when it comes to production allocation. You can achieve great success for your company with the right practices, tools, and partner — including a trusted partner like Value Global. Visit Value Global online today to get started.
Information Technology, Oil and Gas

Data Analytics: What Does the Oil and Gas Industry Stand to Gain?

Big data and data analytics are changing the game for nearly every industry, and oil and gas is no different. Although some are resistant to change, some experts argue the only thing holding them back is they resist cultural change — in other words, an attitude of “if it isn’t broken, don’t fix it.” What this means, however, is companies whose leaders do take the leap are at a significant competitive advantage. For example, some oil and gas executives are harnessing Master Data Management (MDM) solutions to begin organizing and removing data from silos, putting them on a path to more mature data analytics. These leaders are harnessing data analytics to help boost production capacity, and, in some cases, are seeing ROI multiplied by as many as 50 times.

For oil and gas companies, big data is about more than just high data volumes. In addition to traditionally structured data, industrial operations generate unstructured data, which may be disjointed and nearly impossible to use without advanced analytical software. For instance, those inside some geophysical firms use unstructured seismic data to locate oil deposits while others use data for predictive analysis, which can help these professionals avoid or prepare for accidents or disasters.

Using these and other big data analytics applications is already proving essential for helping company leaders decrease costs, increase efficiencies, and reach maximum production potentials. Companies like BP equip their wells with cloud-connected sensors, each “dumping” roughly 500,000 data points every 15 seconds into a software program.

GE and BP leaders aren’t the only ones noticing big data’s advantages. A 2015 survey by Accenture and Microsoft Corp. reported that nearly 90% of respondents in the oil and gas industry believe they could increase their businesses’ values by improving their analytical capabilities. And that number will likely increase as AI and machine learning continue evolving and disrupting the oil and gas industry. But how can company leaders successfully employ data analytics and stay ahead of the curve? According to a McKinsey & Company article, here are five factors business leaders should consider:

  • Data availability — Most leaders of major oil companies have vast amounts of unstructured and structured data already at their disposal; the question now is how they can best harness it since many are underutilizing this valuable resource. In fact, according to a Master’s in Data Science article, oil and gas information “streams in from a dizzying array of sources – exploration, production, transportation and distribution,” but industry insiders often struggle to organize and leverage it.
  • Infrastructure — Many analytics tools are easy to access, and plenty of services are available to help business leaders get started on big data analytics, even in these early days of oil and gas industry implementation. According to the McKinsey & Company article, “today’s powerful tools use a combination of state-of-the-art engineering, data science, and computing power to identify superior solutions to complex production optimization problems.”
  • Analytics skills — It’s essential oil and gas executives employ skilled data scientists, creating a foundation of analytics excellence for their companies. Data team members should understand the connections between business problems and analytics solutions.
  • Redesigned work and governance — It’s also important for company leaders redesign their work processes to increase efficiency and optimize production. When it comes to analytics, they should consider end users to achieve the best results. According to the McKinsey & Company article, one North Sea operator employed data scientists to find major bottlenecks by analyzing data, pinpointing key areas ripe for process improvements.
  • Business-driven agility — IT infrastructure designers should not do everything all at once. Instead, they should build momentum for advanced analytics programs via short, metrics-driven pilot projects. From there, designers and company leaders can develop a long-term vision for how analytics can reshape their business.

While change can be costly and the unknown met with hesitation, the potential costs of production losses and operational expenses for those without smart data is too great. Savvy industry experts who invest in modern-day technologies to make optimal decisions and streamline efficiencies are already proving big data’s worth. It’s time for oil and gas leaders to embrace this transformation to not only stay ahead of the curve but also help their companies thrive.

There’s no doubt about it: Analytics are an industrial game changer. To keep pace and maximize your competitive advantage, you need to work with a trusted IT solutions provider. Visit Value Global online or contact us today to get started.
Information Technology, Uncategorized

Value Global Managing Principals Talk Company History and Passion

Value Global is known for enterprise services and custom, client-centric IT solutions. Founded on a consulting background, experts continue to offer innovative approaches to client services. Those at Value Global balance clients large and small on a variety of projects. Their solutions encompass managed and support services to keep users operating efficiently and business leaders seeing greater returns on their investments.

An interview with two Value Global Managing Principals, Kumar Nadar and Shree Sannabhadti, pulled back the curtain on the company’s history and the industry as a whole in the last decade.

Shree Sannabhadti founded Value Global in mid-2006 with the goal of solving issues he perceived in enterprise resource planning (ERP).

“What bothered me was that ERP was the same for over 20 years with no progress,” Sannabhadti said, “but we could see the world move from phones to smartphones and laptops.”

A customer-centric history then, now, and moving forward

Kumar Nadar

Kumar Nadar, Managing Principal

“We were very focused on providing solutions to customers from a consulting background,” said Nadar, who joined the company in early 2007.

As Value Global and the services its people provide continue to grow, adapting to a decade-plus of change, Sannabhadti and Nadar remain committed to working on the customer side. Today, they’re working to optimize client solutions that offer coverage to all aspects of business — not just tech. They note the cloud revolution’s impact on those not only within Value Global but also across the entire industry. The cloud allows for more optimized solutions and services; thus, using the cloud can shrink project time to completion in a timely manner.

“What we’re seeing are changes across the board,” Sannabhadti said of cloud-based services. “We can do a lot of things very quickly that were impossible before.”

Shreedhar Sannabhadti

Shreedhar Sannabhadti, Managing Principal

“The biggest change has been how business functions as a service,” Nadar added. “Most IT functions used to be all in-house, but now companies are able utilize additional resources from outside providers as-needed … eventually what will happen is you’ll see IT — and everything else — become a service. We differentiate ourselves in that we can leverage [services] and enable you to access the service as required.”

To date, cloud integration and resulting cloud solutions are perhaps the biggest changes Sannabhadti and Nadar have seen in terms of service expansion and offerings. However, the principals plan to incorporate other tools like machine learning, artificial intelligence, data analytics, and more technology surrounding the Internet of Things (IoT). Although — Sannabhadti admitted — there’s still work to be done, they’re proud of the innovative, highly focused ways they map out solutions for their customers.

“Other companies rarely try to understand their customers — and their customers’ customers,” he said. “With data analytics, we are able to support our customers with actionable insights into their customers’ patterns and preferences as well as other valuable market information.”

Driven by innovation and passion

The Value Global name is built on its employees’ commitments to reliable and customer-centric solutions, and the managing principals ensure their passion for their work shines through. Nadar enjoys being client-focused, learning about challenges with customers, and working together to find solutions. His drive, he said, is based on getting to know different groups of people and areas of business, then creating customized solutions to meet their current and long-term needs.

“I like supporting customers by helping them scale their businesses from start-up modes to successful companies,” Nadar said.

“To me, the key thing is to ‘wow’ customers,” Sannabhadti said. “Not just happy, but to say ‘wow, these guys have done something out of the ordinary.’ The end goal is to give them what they want … and to take them to the next level.”

He attributes much of Value Global’s success to employees’ client-centered focus and relationship-building efforts. Most customers have worked with Value Global experts for nearly a decade, which he says helps them leverage their business as a team.

“There are different aspects of the work that I love, so to pick a favorite project is like asking which kid you love the most,” Sannabhadti said.

When reflecting on a particular client he said, “They had to build an application to handle near-misses; we took some data and by the second week had a solution. Their eyes lit up … some of these solutions feel like giving eyes to the blind and, to me, that is very satisfying.”

In the end, Nadar and Sannabhadti agree that Value Global is first and foremost about building and nurturing good relationships while staying innovative. It’s clear these two, along with others at Value Global, are not only dedicated but also passionate about helping their clients and providing innovative solutions. From their early days of consulting to providing their own highly innovative range of tech and business solutions, those at Value Global look forward to continuing their growth for years to come.

Throughout the company’s entire history, those at Value Global have been committed to innovation, collaboration, and customization. Today, they help businesses by applying industry expertise to develop client-centric solutions across a range of technologies. Visit Value Global online to learn more.
Oil and Gas

P2 ASCEND Conference

ASCENT 2017

Discover the ways to streamline efficiency in production and reduce costs! P2 ASCEND will be hosted in San Antonio from Nov. 13-15, 2017. Learn how those in the oil and gas industry are achieving a competitive edge and becoming more successful using the P2 Oil & Gas Platform. With more than 500 oil and gas professionals expected to be in attendance and over 100 session presentations, the insights and expert advice on how to maximize use of the platform will be invaluable.

On Tuesday, Nov. 14 at 3:10 p.m., Shree Sannabhadti, managing principal at Value Global LLC, will deliver a presentation entitled, “BoxBridge: Bridging the Gap Between EBS and the Cloud.” Sannabhadti will discuss the transformation into a hybrid enterprise and how it is imperative for all businesses across industries today. Oil and gas companies rely on the security, flexibility, and scalability of applications such as Oracle E-Business Suite (EBS) — and this is where Value Global LLC’s BoxBridge comes in. It serves as a multifunctional plug-in that allows users to store and access content, taking the pain out of transitioning to a hybrid enterprise.

To find out more about Value Global LLC, visit their latest blog regarding the challenges in the oil and gas industry by clicking here.

Uncategorized

Oil and Gas Industry Leaders Leverage New Tech

Terms like “the cloud,” “big data,” “analytics,” and “the Internet of Things (IoT)” are making news, and insiders mention we’re in a new digital revolution. Why? Simply put, advanced technology developments are giving company leaders new levels of visibility, access, and efficiencies with their businesses and customers — and many are taking full advantage.

Big data describes the huge amount of information to which business leaders have access. The cloud is a means to store data in off-site servers, and analytics refers to the studying and using of the collected data. The Internet of Things (IoT), in its simplest form, refers to how computers and other machines connect and communicate with one another and allow for predictive real-time information transmission. This information and computing power is extremely valuable and has far-reaching application across industries as diverse as finance, manufacturing, and health care.

Data analytic software can take granular information and find substantial cost savings. Well-known manufacturer Caterpillar Corporation turned to IoT to dramatically increase return on investment by analyzing big data to save time, money, and — ultimately — equipment. For example, instead of running a few generators at capacity, Caterpillar employees discovered that running more generators at a lower power level saved them over half a million dollars annually. The Caterpillar Asset Intelligence platform integrates data and analytics to provide customers with fuel savings and preventive maintenance suggestions that add up to significant savings over time.

Although Caterpillar largely operates within the manufacturing and construction space, its strategy can be directly applied to the oil and gas industry, where information gathered from large, complex equipment is absolutely critical to exploration and production operations. Employing a monitoring strategy anchored in IoT, for example, would improve the integrity and efficiency of  performance data and help avoid costly shutdowns. But preventive maintenance isn’t the only way those in the oil industry can get at cost savings through data analysis.

It’s no secret oil and gas has seen a downturn in recent years. The addition of an improved, more innovative tech strategy has helped those in the business streamline processes and improve cash flow. Big data strategies in particular have been extremely effective for bottom lines, ultimately increasing profitability and helping companies to remain viable in a difficult market. In fact, Shell is already using big data to lower the cost of drilling as well as ensure machine efficiency through a “data-driven oilfield.”

Oil and gas may have been a little later to the game, but the reality is that oil and gas company leaders already overwhelmingly believe these new tech initiatives are valuable for the long-term, and most will continue to invest in big data, cloud, analytics, and the IoT to inevitably drive this industry in the near future.

Value Global experts have been immersed in the oil and gas industry for over 20 years. Our support and experience can help you leverage big data, the cloud, and the IoT to increase your efficiency and profits. We provide comprehensive oil and gas functionality in business intelligence, operations accounting, and land management fields. Contact us today so we can begin collaborating on your project.
Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Spotify
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound
CONTACT US