During this period of exceptionally depressed crude oil and natural gas prices, it’s crucial for energy companies to identify innovative, impactful ways of doing business more efficiently and more economically. With budgets being slashed and staff reductions routinely making headlines, today’s conference rooms are chock-full of operational challenges and difficult business decisions. While these recessionary periods create substantial hardships, those of us who survive will not only have tightened our budgetary belts, but will have developed new ways of doing business through changes that produce truly cost-effective improvements. One area of the oil and gas industry where significant advances in technology are producing bottom-line benefits is hydrocarbon measurement, whether as a service or an internal software-based solution.
Highly integrated measurement processes (click here to view a typical depiction
) were formerly only affordable and practical for Fortune 500 companies. However, these advanced natural gas measurement services are now available to energy companies of all sizes, in ways directly comparable to advances made in banking, data processing, telecommunications, and other fundamental business activities, with a similar benefit of substantially reduced costs. Among the most common attributes of a fully integrated hydrocarbon measurement process are:
- Precise, fully accountable measurement results which are compliant with industry standards and best practices;
- A comprehensive corporate measurement policy that provides the framework for standardized procedures which ensure accuracy, accountability, efficiency, safety, and profitability;
- Minimized risk associated with royalty payments, sales-gas allocations, cash flow, operations, as well as regulatory and contractual compliance;
- Streamlined and expedited measurement, accounting, regulatory, and financial processes that employ automated report scheduling;
- Reduced "Lost and Un-Accounted For" (LUAF) quantities;
- Secure, Internet-based access to reports and statements;
- Measurement data archived in accordance with API Chapter 21.1 Audit Trail Requirements, for a full 7-year period; and
- Comprehensive disaster recovery (DR) and business continuity (BC) provisions.
Hydrocarbon measurement is one of the critical business functions within our industry which continues to demonstrate significant technical advances that further the value proposition of the digital oilfield. If your organization is not currently employing fully integrated measurement processes, a discovery assessment by an experienced and highly reputable measurement services company should be considered.
"Necessity is the mother of invention."
~ Plato, Classical Greek Philosopher