The economic downturn of 2020, coupled with the COVID-19 pandemic has created substantial upheavals in the oil and gas industry. Companies across the spectrum have sought solutions both common and out-of-the-box as they attempt to stay afloat. oil and gas companies have begun to heavily leverage technology effectively to lower costs and pursue success.
In this article, we’ll focus on four proven technology approaches that can benefit your upstream and midstream oil and gas company. These approaches will address your current struggles, position your company to scale, and streamline your operations to weather the next time the business cycle points downward.
1. Digitize Your Back Office and Field Operations
Even though oil and gas companies use plenty of technology every day, they are the least “digitally mature” out of all major industries, according to recent industry reports. This means they are least likely to leverage technology in a forward-thinking way that emphasizes data, analytics, insights, or automation.
However, many other companies besides those in oil and gas are nervous about investing in technology during a downturn. They fear being accused of stressing the business with frivolous waste, lengthy implementation timelines, and steep learning curves. While those concerns are understandable, that attitude typically leads to short-term fixes focused on survival, instead of long-term, sustainable success.
We recommend that your business take the big leap into full-scale digital adoption across your workplace, both in the main office, your employee’s work-from-home setup, and in the field. Without it, you’re merely doubling-down on antiquated strategies and time-consuming processes that silo teams and keep your people away from value-added activities. Moreover, remaining status-quo costs more in the long-term.
2. Pursue Efficiency
Going all-digital is a rather broad recommendation, one that won’t win any fans with your C-suite executives. Thus, we suggest you find technologies and services that increase your overall operational efficiencies, both at the personal and procedural levels. However, since changing the behavior and habits of an organization feels like turning a large cruise ship, address the biggest pain areas first.
Your company’s leadership should analyze what a “day in the life” looks like for their employees or teams, as this will inform them of the entire organizational structure. From there, you must determine how well time is being managed among the different teams or employees, information that’s even more essential than funds during an economic downturn. This is where the right technology will make a big difference in operational efficiency and your bottom line.
The correct way to leverage technology will look different for every organization. Thus, you must have the right platforms and processes in place for your people to provide a clear path toward long-term success, no matter what industry changes you might face. The technology can save thousands of dollars once implemented, as it will enhance operations with ease of use, automation, data accuracy, and consistency.
3. Automate Everything You Can
Speaking of automation, it’s the “secret sauce” to surviving our current economic situation, since it will streamline operations. Companies should integrate systems and processes so employees can channel their time toward more productive activities that computers can’t do, like decision making, strategizing, and planning.
The oil and gas industry has often resisted both software and hardware upgrades, usually with the line, “Why mess with what’s been working?” However, we’re living in different times. Not only are there a slew of resources available to improve project success, but they also enhance the bottom line because of their efficient nature.
Resisting technology just doesn’t make sense anymore — even if the budgetary outlook seems dire initially. Oil and gas companies should consider solutions that have a proven track record of success with the capacity to scale, integrating capabilities, and an efficient reporting platform.
4. Seek Outsourcing Solutions
Although ideal, not every company has the capability or capital to invest in wholesale upgrades. More importantly, most companies don’t have the information technology infrastructure present to handle what they need. This is where working with an outsourcing company helps.
With the right back-office and IT outsourcing firm, your company will only need to contribute a fraction of time to technology issues so employees can instead focus on other activities that drive growth. The outsourcing company will identify the right technology solutions, implement them seamlessly, and provide the necessary maintenance. This lowers your current and future costs, as your outsourcing partner will perpetually upgrade your capabilities as needed so you’re ready for the next challenge.
Experience the EAG 1Source Difference
Our company was created with the express purpose of handling the day-to-day operational nuances faced by upstream and midstream oil and gas companies We’ve helped hundreds of firms successfully navigate multiple economic downturns, grow after bankruptcy, and engage leadership to focus on the fundamentals —- namely, giving people back time in their day. We will deliver solutions that help you leverage technology so you can cut costs, improve operational efficiency, and thrive in even the most tumultuous economic environments.