The upstream Oil & Gas (O&G) industry is witnessing an explosion of data. The volume of data is predicted to grow exponentially due to the development of digital oilfields. A multitude of sensors, higher frequency of data collection, integration with operational, financial, human resource and supply chain data is further adding to the complexity of data management. The challenge is to effectively capture, store, manage, analyze and deploy the data for upstream assets.
While the economy recovers, O&G prices continue to move upwards and O&G companies are expected to make significant investment in improving their data management to create better decision making and add higher efficiencies.
The two key areas that O&G companies must address are Real Time Data Management (RTDM) and Business Analytics. Consumers of data will demand greater emphasis on access, clean-up, and the preparation of data for activities like analysis, analytics, and interpretation. The most immediate outcome of the growth in data volume and the speed with which it needs to be consumed and acted upon across the enterprise is on how data is captured, adoption of standards, processes, governance models, collaboration and communication across the enterprise.
It is imperative that the O&G industry, which is largely broken into silos, recognize the need to raise the bar on data management assets, systems, tools and processes.
With the growth in digital oilfields and a multitude of sensors the industry’s reluctance to invest in technology and data management is changing. Newer geographies, regulatory requirements and competition mean that the O&G industry will be compelled to make renewed investments in processes and technology to increase efficiency and profitability.
As operations within the O&G industry get integrated, the accuracy of data and the provisioning of standards will be the key to success
Understanding the need for data management:
The Oil & Gas Journal Online Research Center (http://ogjresearch.stores.yahoo.net) and WIPRO (www.wipro.com) conducted a survey among PennWell Petroleum’s (www.pennenergy.com) database and other industry sources. The purpose of the survey was to develop industry insight on the current state of upstream data management practices and to identify leading practices that can be shared with the industry.
The survey specifically seeks to understand the issues around the following:
- Is the quality of data available sufficient to make good business decisions?
- Where is the upstream organization in relation to the adoption of dependable IT standards?
- How do Data Stewards impact the delivery of reliable, high quality data across the organization?
- What is the impact of data management processes on timeliness of access and quality of data?
- What data type is of the highest quality and what is of the lowest quality?
- Is upstream data managed successfully?
- What is the extent of concern over (the lack of) alignment between IT and business?
- Is there a co-relationship between good data management, leadership, the IT organization and the business organization?
- How do organizations perceive the lack of naming standards, KPIs, enterprise master data and the inability to integrate data?
- What percentage of the industry is adopting IT Standards?
- Have organizations realized the success of upstream data management related initiatives?
Survey questions were submitted by Wipro and their representatives. The survey was posted on an online survey site. Those in the sample group were sent an e-mail invitation to participate, with a link to the survey. A reminder e-mail was sent approximately 10 days after the first mailing.
Responses were received from 191 individuals. The number who answered each individual question varied.
Detailed survey findings:
1. Organizationally, are you more aligned with the business or the IT function?