5 Ways of Managing Data and Digital Technology to Streamline Processes in Oil and Gas

In today’s dynamic oil and gas landscape, harnessing the power of data and digital technology to effectively drive decision making is essential for operational efficiency, cost reduction, and sustainable growth. From predictive maintenance to supply chain optimization, organizations are constantly striving to leverage data analytics and AI-driven solutions to drive innovation. Leaders now recognize the imperative to achieve significant shifts in these areas, especially when it comes to data and digitization. 

Based on research calls with renowned industry experts, we've highlighted five strategic approaches to managing data effectively and integrating digital technologies seamlessly into oil and gas operations.  

#1 Ensuring Data Integrity and Accuracy 
Given the multitude of data entry points and manual processes, maintaining data accuracy and consistency becomes progressively challenging for the oil and gas industry. Managing master data haphazardly often results in data duplication, outdated records, incomplete information, and inconsistent formats. Additionally, poor data quality can significantly impact operational efficiency, lead to inaccurate reporting, and result in costly errors in business decisions. 
 
On that, an industry expert shared, “During our technology rollouts, we have a very robust process of checks and balances – verifying the reliability and accuracy of our data. Additionally, we have installed automated performance monitoring solutions, that monitor all our servers and applications, proactively hunting for potential issues.” 
 
Data Governance: Establish robust data governance practices by defining data ownership, access controls, and quality standards.   
 
Automated Validation: Implement automated checks to validate incoming data and use anomaly detection algorithms to identify inconsistencies or errors. 
 
Master Data Management (MDM): Ensure consistency by creating a centralized repository for critical data (e.g., well logs, production data). 

READ: Insights Report: Improving Human Reliability Across Enterprise Operations with Workforce Excellence
 
#2 Prioritizing Data for Analysis 
Establishing effective mechanisms requires a thorough grasp of the organization’s existing performance baseline, well-defined key performance indicators (KPIs), and visualization tools that facilitate swift, data-driven decision-making. To unlock the full potential of their digital investments, companies must establish a system for monitoring project progress and assessing the tangible impact on their bottom line.  
 
One industry expert shared, “Before we begin any AI or data analytics initiative, we first align with the business and make sure we are working on solutions that are targeted towards specific problems to make improvements in our manufacturing plants, with the goal of providing our customers with a better and more reliable product.” 
 
Business Context: Understand business objectives and operational challenges to prioritize data that directly impacts decision-making, safety, or cost reduction. 
 
Critical Metrics: Focus on key performance indicators (KPIs) such as production rates, equipment reliability, and environmental compliance. 
 
Real-Time Data: Prioritize real-time data from sensors and IoT devices for immediate action. 
 
#3 Leveraging Data Analytics for Optimization 
Operators can leverage advanced algorithms and machine learning techniques to extract practical and valuable insights from the vast amount of data collected during manufacturing, exploration, and distribution processes. Decision-makers can then allocate resources effectively, streamline operations, and proactively identify potential risks or anomalies. Additionally, the adoption of AI-powered predictive maintenance solutions contributes to reduced downtime, increased asset reliability, and overall safety improvements. 

With that in mind, one expert shared, “We focus on creating “action boards” and avoid creating “dashboards” that simply become another art-piece hanging on the wall.  These action boards use AI and advanced analytics to create new insights for our operating teams, which provide them with tangible opportunities to be proactive and take real action - moving us towards a more optimal operating range.” 

Predictive Maintenance: Use machine learning models to predict equipment failures, optimize maintenance schedules, reduce downtime, and extend asset life.

Production Optimization: Analyze production data to identify bottlenecks, optimize well performance, and enhance reservoir management.

Supply Chain Efficiency: Apply analytics to logistics, inventory management, and procurement, resulting in optimized transportation routes and reduced costs. 

READ: Case Study: Understanding SLB’s 'Living Our Culture' Program

#4 Balancing Technology Adoption and Security 
Building the right infrastructure is key when it comes to balancing technology adoption with security, especially when it comes to the oil and gas industry where data practices are complex and fragmented at best. Achieving this balance requires close collaboration between technology experts and other business stakeholders, encompassing not only IT/OT infrastructure but also data management and cybersecurity. 
 
With their own operations in mind, one expert shared, “This is an ongoing challenge. We have trained over 350 engineers globally as “Super Users” in a wide range of data analytics and OT software, which empowers them to create their own opportunities and success stories. The challenge with this approach is finding the right balance between empowerment and governance, which is why have created many automated monitoring tools that check various metrics, configuration settings, performance metrics, and error logs that catch potential issues before they become big problems.” 
 
Risk Assessment: Evaluate the impact of adopting new technologies by consider cybersecurity risks, data privacy, and compliance. 
 
Secure Data Pipelines: Implement secure data pipelines for data ingestion, storage, and processing while encrypting data at rest and in transit. 
 
Collaboration with IT and OT Teams: Align IT (Information Technology) and OT (Operational Technology) teams to ensure seamless integration while maintaining security protocols. 
 
#5 Fostering a Data-Driven Culture 
Even the most cutting-edge technology cannot achieve its intended outcome by itself. True value emerges from the synergy between the tool and the people who wield it. Advanced solutions sometimes falter not due to incorrect results, but because the workforce lacks understanding or trust in those outcomes and therefore, successful digital transformations prioritize a people-centric approach.  

“Creating and implementing a robust communication and marketing strategy is key for creating that data-driven culture across different countries and cultures. We frequently share success stories, highlighting outstanding work and results, constantly promoting the value creation from our various digital transformation initiatives.”, shared an expert in the field. 

Leadership Buy-In: Engage senior leaders to champion data-driven initiatives and communicate thoroughly the value of data analytics in achieving business goals. 

Training and Upskilling: Provide training to employees on data literacy, analytics tools, and best practices and make sure to encourage continuous learning. 

Reward Data-Driven Behavior: Recognize and reward employees who actively use data for decision-making and celebrate successful data-driven projects to encourage innovation. 

READ: 5 Ways Artificial Intelligence (AI) Is Reshaping the Energy Sector

Interested in learning more? 
To learn more about the best methods to implement digital transformation and operational excellence across your operations, join us at our 15th Annual Operational Excellence in Oil & Gas Summit in Houston, from November 5-8. This year's summit will help you navigate challenges within your digital transformation strategies through a mix of world-class case studies, technology demonstrations, panel discussions and more. Download the agenda for more information.