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.
During the webinar, we took the opportunity to survey attendees regarding the biggest obstacles they currently face, what business benefits they are most keen on capturing through real-time LOE, and general thoughts regarding blockchain and its broader implementation across industrial sectors.
Results from our first question show that inaccurate field data and manual processes including paper tickets and invoices contribute to the biggest challenge in managing LOE.
Continuous and sustained real-time visibility captured the most votes for biggest payoff for those attending the webinar closely trailed by a desire for the ability to tie spend to production.
A unanimous vote in favor of the improvements that will happen in the oil and gas industry through blockchain-powered smart contracts.
A Revolutionary Change
Current methods for managing LOEs for commodity production, chemical consumption, water haulage and disposal, fuel, power, labor, rental equipment and other well service expenses are time and resource-intensive. With manual paper trails and tickets that average 60 to 90 days to work through field approvals and accounting systems processes, the ability to comprehend and tie spend to production and profitability is obfuscated by delays, disputes and complicated reconciliations.
By adopting a digital perspective with smart contracts powered by blockchain technology, operators can speed up payments, eradicate paper processes and unlock real-time visibility. If you missed the webinar, you can catch the full replay here. You can also download our industry perspective document available here.