May 13, 2020
Research shows need for operators to adopt new technologies focused on efficiency
In the early days of the 2020 pandemic, we read a report about research done by Quorum Software, indicating the need for operators to invest in digital transformation efforts to weather the storm. According to the report’s authors, “Companies that have started their path to digital transformation for improving efficiency in operations will survive the crisss 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 is a marked lack of sophistication in the tools operators are using. They echoed something we at Actenum have been saying for a while: operators are no longer going to be rewarded simply for producing barrels of oil but instead for how efficiently they do so.
The article reported that one way companies can increase efficiency is by modernizing and introducing new technologies into their business. 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’ve been surprised that, given the importance of the well delivery function for profitability, operators are still using spreadsheets and other unsophisticated tools for scheduling drilling programs. This approach leaves all the decisions about how to assign rigs and frac spreads to program activities up to the scheduler. The human mind is a powerful tool, but it is no match for software that uses AI to rapidly sort through thousands of possible combinations to create the most efficient sequence of well operations. And when you’re trying to determine the best way to ramp up or ramp down operations in response to industry conditions, you can’t afford to wait a week to determine the best course of action. The power of AI can be harnessed to create and evaluate multiple scenarios that instantly show the impact of changes onimportant Key Performance Indicator metrics, such as cost and production.
So as operators navigate through difficult times, research shows that operational efficiency is a critical factor in success, and now more than ever an investment in new technology with a focus on efficiency and optimization is key to a positive outcome.
If you’d like to discuss how Actenum could help with your digital transformation contact us at firstname.lastname@example.org.
Vice President Business Development