There are over 9,000 independent oil and natural gas producers in the United States, operating in 33 states. Each of these companies works with countless vendors and service providers, all who stand to benefit from a digital oilfield. According to Oilprice.com, US oil and gas will contribute $1.9 trillion to U.S. GDP by 2035.
Trends
A major industry shift was recognized with the major price collapse in 2014. Dramatic layoffs were coupled with a decrease in exploration and production. The industry was forced to examine its current strategy and minimize its future risks. With this, a proactive approach was taken with the introduction of automation and new technology.
With the recent resurgence and confidence in the market, production in upstream and midstream in particular are increasing at a significant rate. Additionally, the stabilization of crude oil prices has opened the door for additional investment in technology, providing a perfect storm for digital solutions in oil and gas.
It cannot be overstated that the direction of leadership across the board for all E&Ps is to invest in new cost saving technologies rather than throw manpower at business challenges. Supply chain, operations and accounting teams are all being directed to bring emerging tech to the table.
By 2020, 100 percent of oil and gas companies will have invested more in cloud-deployed applications than in supporting or acquiring on-premises apps. In fact, according to Gartner, by 2022 more than half of significant new business systems will incorporate continuous intelligence that uses real-time context data to improve decisions.
Challenges
One technology that is top of mind for all operators and service providers is ticket automation in the oilfield. Currently most transactions are completed using a carbon copy handwritten approach, wasting time and costing companies billions of dollars industry-wide. The lack of transparency makes it impossible for companies to effectively manage their day to day operations and perform intelligent audits of their field activity.
According to Oil & Gas Journal, only 45 percent of operators had any type of electronic field ticketing system in place and only 25 percent of supplier companies were using digital tickets. Most companies also must combine multiple systems for field management, rather than having a centralized platform for all services.
Without access to this data, companies lack the real-time actionable intelligence to make prudent business decisions. Companies not embracing big data and analytics will soon find themselves falling behind those who realize these competitive advantages.
Solutions
One company that is holding the reins for this digital transformation is Engage Mobilize. Engage is a cloud-based digital field management platform that is revolutionizing the way oil and gas companies interact with their service providers. Its comprehensive solution interfaces with both operators and vendors, allowing transparency on all sides. Engage is the industry preferred solution for digitizing oilfield activity spanning across over one hundred service types.
As a company, Engage Mobilize is a blend of industry experts along with established professionals in forward thinking technology. Its solution digitally mirrors intricate workflows in the field, making it easy to adopt, while keeping a big picture, data driven approach that is paramount from an executive perspective.
By integrating with other software, Engage can preload pertinent information, predictively schedule repeatable services and streamline ticket information into accounting systems. Leveraging robust modeling tools, its solution creates unprecedented data analytics in real-time. The data collected through the digital ticketing process is pertinent for new technologies such as blockchain and dynamic smart contracts to operate seamlessly.
After realizing successful results, Engage clients have been moving rapidly to expand their solution to other active basins. Case studies reflect a dramatic reduction in costs and increased productivity, all the while saving precious time for both operators and their service providers. One company in particular was searching for ways to reduce its LOE costs. In the first six months of bringing on the Engage platform, they realized an 8.5 percent decrease in its water transport invoices, saving them millions of dollars per year.
Market
Currently there are very few true competitors in the market. Some companies offer a piece of Engage’s complete solution, such as digital tickets. However, they do not offer the advanced technology like their automated dispatch and ticketing capabilities, nor do they provide software and IoT integrations. Engage is also the only solution that interfaces with both the operator and their service providers, providing real-time data to both sides.
The future is bright for Engage Mobilize, having recently secured the team’s Series A Investment from Cottonwood Venture Partners. Engage is also the latest company to join Cottonwood’s portfolio of industry leading energy technology solutions. The funding will allow Engage to add to its Denver-based team to enhance its current platform and accelerate new product development, including advanced-analytics features for customers.
Digital transformation is coming to the oil and gas industry. It is not a question of when, but rather how fast.
