May 13, 2020
Research shows need for Operators to adopt new technologies focused on efficiency
In the middle of the pandemic lockdown, we read an article about research done by Quorum Software, indicating the need for operators to invest in digital transformation to weather the current storm. According to the report’s authors, “Companies that had started their path to digital transformation for improving efficiency in operations will survive the crises well and emerge as leaders.” They went on to explain that in today’s volatile environment, access to information, insights and data has never been greater and that there was a decided lack of sophistication in the tools operators were using. They echoed something we at Actenum have been saying for a while, that operators in this environment will no longer be rewarded just for producing barrels of oil but for how efficiently they do so. One way companies can increase efficiency the research reported is by modernizing and introducing new technologies into their business models. And almost all the executives surveyed agreed that, “New technology should not be treated merely as an expense but rather a way to save in the future through efficiency.”
Since we introduced our software in 2003, we at Actenum have been surprised that, given the importance of the well delivery function to profitability, operators are still using spreadsheets and other unsophisticated tools for scheduling well delivery. This way of scheduling leaves all the decisions about when to schedule Rig A and Frac crew B up to the scheduler. The human mind is a powerful tool, but it is no match for a software that uses AI to rapidly sort through thousands of possible combinations to come up with the most efficient sequence of resources and assets. And when you’re trying to determine the best way to ramp up or ramp down operations in response to market conditions, you can’t afford to wait a week to determine the best course of action. Again the power of AI can be harnessed to create and evaluate multiple scenarios that instantly show you the impact changes have on schedule, cost and production.
So as Operators navigate this difficult environment, research shows that operational efficiency is a key decider in success and now more than ever an investment in new technology with a focus on efficiency and optimization is critical.
If you’d like to discuss how Actenum could help with your digital transformation contact us at email@example.com.