Oil and gas companies are looking to implement technology to shore up core business processes and accommodate a multitude of consequences currently facing that the industry.
Data Gumbo recently hosted a webinar illuminating real-time lease operating expenses (LOE) for oil & gas operators. Participants Alan Carnrite, CEO of The Carnrite Group, and Andrew Bruce, Data Gumbo’s own CEO and Founder, explored real-time LOE as a way to empower operators with access to accurate, real-time information and financial visibility.
In the first six months of 2020, 3,500 companies filed for bankruptcy. Experts expect insolvency numbers to surpass $100 million, rivaling the results of the 2008 economic crisis. There’s nothing to doubt: COVID-19 is deeply impacting companies. In fact, 58% of business leaders say that recent circumstances have completely changed their organization’s strategic priorities.
If this year has taught us anything, it’s be prepared for the worst case scenario — perhaps the bumper sticker of 2020. Business as usual was quickly usurped by the COVID pandemic and commodity prices touching down to a 30 year low. Coupled with a crippling lack of demand, oil & gas companies have been left with little choice: adapt to the low-priced oil environment and cut costs, or face dire consequences like layoffs, bankruptcies and other down-market results.
Whether hot and dusty, freezing cold or perched over saltwater, a constant geolocationally-agnostic task at hand is that stack of paper tickets and invoices that proliferates across the desk of the ‘company man.’ With years spent in college and various training courses to responsibly manage the safe construction of productive wells, paperwork can feel a Sisyphean side chore — with two to three hours a day spent stamping tickets. In 2020, this waste of time — not to mention resources — is beyond undesirable and no longer necessary.
If data is bad, the conclusions drawn from that data will always be bad. This is true regardless of industry or application. Poor data quality from the field has long plagued oil and gas operators, making decision-making around lease operating expenses (LOE) slow and imprecise, in turn, continually yielding subpar conclusions and adding complexity to timely decision making.
Forty-eight percent of CEOs don’t trust blockchain technology.
Drilling contractors often face an uphill battle when it comes to getting paid based on their daily drilling activities and reimbursable expenses. The average service delivery-to-payment process currently runs 60 days or more, leaving drilling contractors with elongated days sales outstanding (DSO).