Businesses in the oil and gas industry know the importance of accuracy and time management. The field is always evolving in order to account for the higher demand of a growing population, and companies need to maximize operations if they want to remain compliant and competitive. Additionally, with oil reserves becoming more expensive and difficult to extract from the ground, it’s important for companies to maximize operations in order to realize business goals and collect revenue. Data collection solutions can help oil and gas companies get the most out of their business processes while maintaining a high level of compliance.
Compliance Within the Supply Chain
An important part of operating in the oil and gas industry is staying compliant with industry regulations. According to PricewaterhouseCoopers, compliance in this industry is complex, as companies are required to navigate several different geopolitical, environmental, energy, and natural resource supply and trading areas. Stakeholder and business relationships add to this climate of compliance, and it can be difficult to navigate the waters of compliance and stakeholder relationships and remain competitive.
Visibility is an integral part of compliance for companies in the oil and gas industry, because the supply chain is so complex. Transportation requires special equipment, compliance with strict regulations and extensive safety procedures, according to Inbound Logistics. Therefore, it’s crucial for companies to find a way to streamline all of these processes and have contingency strategies in place affecting supply chain visibility.
“If an oil rig goes down as a result of not having the proper materials in place, it can mean the loss of $1 million every day,” Brian Murphy, Menlo Worldwide Logistics’ director of business development, told Inbound Logistics. “Logistics reliability is paramount – oil and gas companies will invest in outsourcing to ensure there is no service interruption, rather than risk a problem.”
Mobile data collection can impact the way oil and gas companies move within the supply chain and comply with industry regulations. Employees are able to collect data from the field throughout every step of the chain, and this leads to reduced operating costs and more visibility in the long run.
Looking Toward the Future
Decision-making is a part of any evolving industry, and businesses need to be prepared to implement new strategies that will give them an advantage or will optimize company performance. Often, new information becomes available and forces executives to reevaluate their business strategies; or new technologies come into play that would help streamline processes and keep companies compliant. In a 2014 survey, PricewaterhouseCoopers found that 37 percent of energy executives relied on data and analytics in order to make their last big decision.
When executives need to make choices in a short amount of time, it becomes important to have all the facts laid out beforehand. Electronic data capture can quickly put information that could impact a company’s future in front of the decision-makers; therefore, that information needs to be as up-to-date as possible. Employing mobile data collection will offer executives the opportunity to make those high-level decisions with accurate information.