With oil & gas prices low and looking to stay that way, production price is becoming paramount in the value and viability of oil and gas assets. Suddenly, many facilities have become money-losing enterprises. While this may not last forever, it will definitely last long enough for a major shakeout in the industry, with survival of the fittest.
When oil is $120 per barrel, a 5% cut in your production costs may not set the world on fire.
With prices at $50, the same 5% cut in production costs can make a huge difference to your assets profit margins.
This is why we are seeing a dramatic series of lay-offs in the industry.
This is why there has been a year-on-year >50% reduction in the North American active rig count.
And this is why asset owners are seeking to capitalize on advances in digitized asset management.*
Rather than drag you through another long-winded analysis of the whys and wherefores of the lull in oil & gas prices (global economics, OEPC, China, renewables, fracking, shale…), suffice to say that the geopolitics of energy is heating up! Which = low prices as the logical response for OPEC in the face of implied threats from unconventional energy.
For example, for years, OPEC has said it wasn't threatened by rising U.S. shale production, and that it would work to keep a floor under oil prices. Now, it has been caught napping, and as unconventional oil crept up to account for close to 10% of global production last year, OPEC started a war of attrition, and low prices are its only real weapon.
Indeed, casualties of the war are mounting fast. The U.S. rotary rig count from Baker Hughes, for the week of September 25, 2015, is 1,093 rigs (or 56.6%) lower than last year.
Drilling activity established a new low for the third week in a row. It is the lowest since the week of January 3, 2003 when there were 837 active rigs.
The number of rotary rigs drilling for oil is down 952 year-on-year.
Same story for rigs drilling for natural gas, 141 lower than last year's level of 338. Year-over-year oil exploration in the U.S. is down 59.8 percent. Gas exploration is down 41.7 percent.
According to Swift Worldwide Resources, an oil and gas industry staffing firm that has been tracking the industry job cuts, layoffs in the oil and gas industry have topped 176,000 worldwide.
Multinational oil giant Chevron recently announced plans to slash 1,500 jobs, including 950 in Houston. Royal Dutch Shell plans more than 6,500 redundancies worldwide in the coming year.
Faced with tighter (sometimes negative) margins and fewer staff, the savviest management teams are looking to streamline operations by implementation of the latest industrial asset management strategies and tools. Unlike cutting maintenance and management staff levels, which saves money in the short term but hinders operational efficiency, upgrading your operations and maintenance protocols using purpose built software saves far more money while simultaneously improving asset performance.
That’s where IAMTech comes into play.
Winning Time with IAMTech
When we talk about winning time, we’re talking about freeing up managers to manage operations and people, rather than manhandling what should be simple tasks through a quagmire of inefficient data and communications.
With the IAMTech suite of Oil & Gas asset management software, you no longer have to make a trade-off between efficiency and effectiveness.
The data you need to make the right decisions will always be at your fingertips, whether you are stood on a North Sea oil rig in a gale on a winter’s night or thousands of miles away in a cosy office.
When faced with a project, you can be sure of the resources that are required, when they will be available, and how they are best deployed within hours or even minutes, rather than engaging in a hectic, drawn-out exercise of data mining and communications to get to square one.
What we can offer:
The iPlan suite prevents assets from attempting to undertake unachievable maintenance scope by forecasting the likelihood for success by Monte Carlo simulation. Now more than ever, assets cannot afford for STO’s (Shutdowns / Turnarounds / Outages) to overrun and impact profits! http://www.iamtech.com/product-iplan2ultimate.aspx
Our product suite includes a range of onsite apps, including:
IAMAllocations enables onsite recording of actual time, expenditure and 'percentage complete' against certain tasks such as scaffolding, painting and insulation. Without
Allocations tends to take place by supervisors completing paperwork away from the job sites, back in their offices.
Allocations is designed to be used 'live' – onsite/plant - reducing the duplication of effort by supervisors, preventing them having to record by hand and then, later in the day, inputting the data into a spreadsheet.
By using Allocations supervisors can therefore spend less time at their desk and more time in the field monitoring the progress, productivity & most importantly the safety of their personnel.
IAMPermit is an electronic permit to work system which supports efficient and safe access to equipment for performing activity.
A comprehensive permit to work system controlling exactly what work is to be done, when, by whom and validated by permit controllers, is the minimum requirement for creating a safe plant environment.
Permits are a means of communication between site management, plant supervisors and operators, and the resources who carry out the work.
Traditional permit to work systems introduce periods of delay into the day whilst permits are created, risk assessed, handed over and executed.
In paper format, permits need to be shared between persons in different site locations which adds further delay to the permit life cycle. This can cause between 30 and 90 minutes a day of inactivity for any maintenance workers unable to commence until permit is in place.
Multiply 60 minutes delay across 50 maintenance operators and permit delays could be costing you $2k a day or $500k per annum!
IAMCompletions prevents plant commissioning being impacted by starting plant systems ahead of readiness. Completions confirm that all works are delivered within the applicable control chart prohibits the damaging of plant systems by starting up before you’re ready!
Why incur a 2 day plant startup delay re-repairing a pressure system you’ve just repaired, all because you tried to start it up before all activity had been completed. What is the cost of delaying your plant start up by two days in loss of production – all this could be prevented by spending $99!
Where to start:
Obviously, all of this is hard to visualize on the basis of this document. To learn more about how we work and what we offer, a good place to start is our website, which features case studies, data sheets on our products, and general information about our company.
And/or, just get in touch with us and we can begin to understand your exact requirements. The business case for our products and services is so clear that we will happily travel far and wide for the opportunity to take prospective clients through an informative and persuasive presentation—just contact us and we will deliver a polite, informed representative to a time and place of your choosing, secure in the knowledge that nobody’s time is being wasted!
ABOUT: IAMTech has been a pioneer in improving asset efficiency through streamlining maintenance, operations and safety processes in the oil, gas and chemical markets for the last 15 years. Our software is being adopted by major names in the industry, from BP Chemicals & Exploration to Perenco & Petronas. Our growing success is the best testimony to the efficacy of our asset management software solutions. Moreover, after 15 years spent refining our products and services – listening carefully to our customers and capitalizing on developments in data management and software – our richly deserved reputation for reliability is growing and spreading.
Our products have been painstakingly refined through years of listening to our customer requirements to tackle industry-wide problems, for companies including Air Products, BP Chemicals, BP Exploration, Certas Energy, Chemoxy, Esso Petroleum, Falck, Hertel, Huntsman, Ineos, Jupiter Insurance, Kaefer, NesteOil, Oiltanking, Perenco & Petronas.
Combining this first hand industry experience with our ever-growing partnerships with world-leading industrial organisations enables IAMTech to understand the technology needs of industry.
Using this position as our foundation has enabled us to build an impressive portfolio of products and services that are being rapidly adopted throughout the oil & gas industry.
What are you waiting for? Our offering is ready to help you today to counter the soft oil era over the next 5–10 years www.iamtech.com/#products
* In a nutshell, Digitizing Asset Management means collecting information on plant, operations and maintenance digitally (as completed forms, measurements, images, video, etc.), processing it digitally (with bespoke software that presents the most important information in assisting plant asset management quickly and accurately for decision making), and then accessing work over a digital medium (computers, mobile devices, etc.).