The importance of data
In a recent survey we carried out, (download the report here), we asked professionals involved in Hydrocarbon Accounting (HCA) how confident they were in their data. Around 65% said that they were “not at all” or only “somewhat” confident.
This issue of unreliable data is problematic. Allocation is all about determining the division of ownership of hydrocarbon products.
Mistakes can have a real and substantial financial impact. Inadequate systems and processes can make it difficult to manage routine issues like mismeasurements. Small problems can give rise to a cascade effect with consequences that are difficult to unravel. A failure of compliance is not the least of the potential problems.
Failure to meet obligations
In this context, the news this week that the US Department of the Interior’s Office of Natural Resources Revenue (ONRR) had assessed Lyon Oil Company as liable for a $113,200 civil penalty for failure to file production reports is interesting. The company was cited for “failure to report production on two wells and for not filing Oil and Gas Operations Reports dating back to 2004”.
Another example is the failure of Energy Resources Technology Inc. (ERT) to permit an audit following a US Office of Natural Resources Revenue (ONRR) request as part of a royalty audit of several offshore leases. The fine was $136,000.
We can only speculate on the reasons why these two companies failed to meet their regulatory obligations. It seems that poor data management is a likely candidate as a root cause. It’s also not hard to envision those companies attempting to manage their data on spreadsheets.
Solving the problem
Solving this problem requires something better than a “big system” approach. The costs and inflexibility of traditional solutions don’t reflect the agile nature of the business that these companies do. They need access to reliable enterprise technology. Technology that is delivered in a way that allows them to build solutions incrementally and be responsive to change.
Small companies need to be agile. Traditional technology solutions, whether it’s Excel or “big systems”, are failing them.
EnergySys Limited are looking for an experienced and dynamic Development Team Lead to ensure our continued market leadership. With overall responsibility for the development of the EnergySys Cloud Platform, you will manage the team to deliver incremental improvements, ground-breaking innovations and the product roadmap.
EnergySys Limited, a growing oil and gas software vendor, is looking for an experienced User Interface developer to join their product development team. The role is focussed on the development of the Web User Interfaces for the company’s portfolio of cloud services.
Clear and concise management is key to data success. In order to maximise the value of each opportunity, you’ve got to begin with the data.
IT systems can be restricting rather than rewarding, which leads to companies having to sacrifice essentials. We reckon there's a better way.