Right now, it’s imperative for oil & gas companies to reduce operating expenses (OPEX) and save cash. With recent oil prices in a four-week free fall, down 60% since the start of the year, further job losses, bankruptcies and consolidations are unfolding.
When oil prices decline, operators buckle down and focus on operational efficiencies to reduce as many costs as possible. But when already operating on razor-thin margins, how do you go about cutting costs when it looks like you can't cut anymore?There is a better way.
Improving Cash Flow Now
Figuring out how to improve cash flow right now will have the most immediate impact on the oil & gas industry. Our company roots run deep at Data Gumbo, and we know how much companies are hurting right now. Over the past six months, we have been working with operators to refine a solution that enables you to take a 14-step, expensive, error-prone manual system and reduce it to a two-step automated process. Early results show multimillion dollar savings for the operator.
The processes being improved are bulk haulage of commodities such as crude oil, chemicals, water, diesel and sand with demonstrated savings amounting to around 10% of current spend. These savings are not at some hypothetical date in the future — savings begin to accrue 90 days from when you subscribe to our Data Gumbo network, GumboNet™.
We do not require any CAPEX, and there is no additional out of pocket expense involved. Our network yields savings in interest charges, enables service providers to get paid at speed, allows operators to only pay for what is actually received, and contractors to receive payments for the value delivered. Savings result from paying only for what you receive, reduced operating expenses and fast pay discounts.
As a network of oil & gas companies, customers, suppliers and vendors, GumboNet enables participants to reduce contract leakage, free up working capital, improve cash and financial management, and deliver material provenance with smart contracts.
From Subscription to Savings in 90 Days: How does it work?
Smart contracts powered by blockchain enables savings to free cash in production operations empowering oil & gas companies to function better in low-cost environments.
Smart contracts will become standard practice in the future, and are being adopted at hyperspeed to help operators — and their entire ecosystems — drive operational savings.
We are here to help navigate this historic period of time. In looking for an answer on how to save money, the tool required is blockchain-based smart contracts. Contact us to evaluate your savings and get started freeing cash flow in 90 days.