The management team of an independent operator in the Permian Basin was well versed in building reserves and production through efficient operations and low finding and development costs. However, they saw that a collection of information systems, manual data inputs and inconsistent processes were keeping the company from next-level growth, investment and profitability.
Challenge
The privately held company inherited multiple legacy operational systems, often redundant, through strategic acquisitions. Unfortunately, this resulted in five manual-entry data streams, which created inaccurate information, resulting in slow, reactive and costly decision-making. Personnel throughout the company understood these issues and were eager to move to a complete, right-sized solution, with the goal of improving data quality and enhancing technology capabilities. The team chose Stonebridge Consulting to assess and recommend a complete business transformation initiative focused on standardizing the operator’s core operations, from the field to the back office to the C-suite.
Solution
Stonebridge brought in a small, highly skilled project team to perform a thorough data management assessment in five weeks. The assessment analyzed the operator’s enterprise information strategy and existing systems, and identified areas for improvement in business processes. It also included a peer analysis comparing the operator’s data management maturity level with like-sized upstream companies.
The assessment put a spotlight on data management issues common to high-growth, acquisition-minded operators. Acquisitions have resulted in multiple systems for the same function, such as SCADA and GIS. Well master data is entered into multiple operational and line-of-business systems. Data flows are manual, with no business rules or quality checks to ensure data is consistent across systems throughout the well life cycle.
Benefits
Stonebridge’s assessment identified improvement opportunities in three areas: process, data management and technology. When implemented, the initiative is expected to drive incremental cost savings and productivity gains approaching $10 million over five years.
After completing the assessment, the company contracted with Stonebridge to implement its recommendations. Stonebridge will use the EnerHub Data Quality and Master Data Management modules and the Peloton Ready process, data and reporting accelerators, specifically its Site Ready℠ for SiteView user profiles addressing facility management, regulatory, construction and water management activities.
Stonebridge will deliver a wide range of advisory and technology services to optimize processes, business reporting and supporting IT systems throughout the well life cycle, financial planning, budgeting and scheduling (Actenum and ARIES); well setup and maintenance (WellView); lease maintenance (BOLO Land); AFE/invoicing; surface operations (SiteView); vendor management; and dashboard reporting (EnerHub). Additionally, Stonebridge will oversee software selection and vendor negotiations.
Next Step
Interested in a similar solution for your organization? Click here to start a dialogue with Stonebridge.