Since the trend toward leaner operation in the Oil, Gas and Environmental Industries is expected to continue throughout the year, we felt it would be a good time to share some of the strategies we’ve seen our clients and others use to minimize costs and get the most out of their budgets - particularly during the remediation, reclamation, and divestiture lifecycle stages.
Identifying and Divesting High-Rent Land
In the past, the process of identifying good remediation prospects was slow, tedious and filled with manual processes. These manual processes, such as copying and pasting data from one spreadsheet to another or emailing project updates across an organization, took a lot of time time and produced frequent errors— both costly outcomes.
Now, better technology is allowing Oil and Gas companies to more quickly and accurately go through their data and identify sites with opportunities to reduce costs or liabilities. The industry is moving away from interfaces that require hours of comparing lines of data, and moving towards fast, visual understanding.
Technology that makes it easy to see site status allows HSE Managers to go through un-reclaimed land quickly and find opportunities for action. Maybe there are previously unidentified sites that may only require light remediation and can be easily reclaimed, or there is high-rent land that needs to be taken off the books. You can now see when these sites are close to one another and can be dealt with all at once, further reducing travel and accommodation costs.
This method of saving is great because it lowers the overall liability of the producer and cuts cost without causing layoffs.
Reducing Admin Hours through Better Data Management
Labour hours in the field are tracked meticulously, but what about your hard-working office staff? Data management hours can stack up, and our clients have found poor data management practices can contribute up to two full-time positions worth of work to even small organizations. When software is used to take the pressure off office staff, those hours can go towards streamlined, profitable activities.
At Long Run Exploration, a forward-thinking Oil and Gas company based out of Calgary, one HSE manager was able to cut her remediation planning time in half, and get better results even in the reduced time. Those hours have been put towards more productive work than tedious data management.
For Oil and Gas companies, increased transparency means you can more easily see that there have been no significant overbillings, unused funds, or other unused savings opportunities. There is a huge benefit to both client and supplier in with this open communication: misunderstandings can be cleared up with data that is readily available, or prevented entirely.
Proactive steps taken by a service consultant, such as having the right tools in place to reduce admin hours and provide greater visibility into project spend, provide benefits on both sides of the client-consultant relationship. Transparency eliminates the need for expensive, time consuming audits by keeping project data, cost, and progress visible. The consultant doesn’t have to charge as many admin hours or spend as much time reporting, and the Oil and Gas client gets peace of mind.
The Right Tools for the Job
Software is available to help Oil & Gas companies cut costs without cutting jobs, and forward-thinking companies are already making use of these tools to great effect.
To see these results, download our case study with TORC, an Oil & Gas producer who has transformed their remediation process with the help of Arkit's visual platform.
If you'd like a tour of one of the best platforms for managing remediation and reclamation projects, contact Arkit's friendly customer service team and request a demo!