Tag Archives: engineers

Capture The Retiring Knowledge

The massive knowledge that is retiring and about to retire in the next five years will bring some companies to a new low in productivity. The U.S. Bureau of Labor Statistics reported that 60% of job openings from 2010 to 2020 across all industries will result from retirees leaving the workforce, and it’s estimated that up to half of the current oil & gas workforce could retire in the next five to ten years.

For companies that do not have their processes defined and weaved into their everyday culture and systems — relying on their engineers and geoscientists knowledge instead — retirement of these professionals will cause a ‘brain drain,’ potentially costing these companies real down time and real money.

One way to minimize the impact of “Brain Drain” is by documenting a company’s unique technical processes and weaving them into training programs and, where possible, into automating technology. Why are process flows important to document? Process flow maps and documents are the geographical maps that give new employees the direction and the transparency they need, not only to ramp up a learning curve faster, but also to repeat the success that experienced resources deliver with their eyes closed.

For example, if a reservoir engineer decides to commission a transient test, equipment must be transported to location, the well is shut down and penetrated, pressure buildup is measured, data is interpreted, and BHP is extrapolated and Kh is calculated.
The above transient test process, if well mapped, would consist of: 1) Decisions 2) Tasks/ Activities 3) A Sequence Flow 4) Responsible and Accountable Parties 5) Clear Input and Output 6) and Possible Reference Materials and Safety Rules. These process components, when well documented and defined, allow a relatively new engineer to easily run the operation from start to end without downtime.

When documenting this knowledge, some of the rules will make its way in contracts and sometimes in technology enablers, such as software and workflow applications. The retiring knowledge can easily be weaved into the rules, reference materials, the sequence flow, and in information systems.

Documenting technical processes is one of the tools to minimize the impact of a retiring workforce. Another equally important way to capture and preserve knowledge is to ensure that data in personal network drives is accumulated, merged with mainstream information, and put in context early enough for the retiring workforce to verify its accuracy before they leave.

Processes and data  for a company make the foundation of a competitive edge, cuts back on rework and errors, and helps for quickly identifying new opportunities.

To learn more about our services on Processes or Data contact us at info@certisinc.com

Better Capital Allocation With A Rear-View Mirror – Look Back

In front of you are two choices: Tie up $100 million with low return or over spend by $50 million with no reliable return. Which option do you choose? Neither is acceptable.

“It seemed we were either tying up cash and missing on other opportunities, or overspending where we should not have in the first place,” said a former officer of a US independent. “We heard great stories at presentations from engineers and geoscientists as they were painting the picture to executives to fund their programs. But at the end of the year, the growth was never where we had expected it to be.”

Passing by poor investments through better allocation of capital greatly enhances company performance. To achieve this, executives needed a system to look back and evaluate what each asset team had predicted compared to the actual performance of the asset. They needed a look-back system where hindsight is always 20/20.

A look-back system is beneficial not only for better capital allocation, but also to identify and understand the reasons for low or high performance of an investment.

Implementing a look-back system is data intensive. The data needed, however, typically has already been collected and stored as part of everyday operations. For example most companies have an AFE system that captures predicted economics of well projects. All companies keep system(s) to capture production volumes and accounting data for both revenue and costs.  Data for evaluating an investment after-the-fact is already available – for the most part.  The reason executives did not have a look-back system was buried in their processes. In how each asset’s economic returns are calculated and allocated.

Here are few tips to consider when implementing a look-back system for an oil and gas company:

  • Start with the end. Identify the performance indicators (KPI) required to measure assets’ performance.
  • Standardize how economics are prepared by each asset team. Only then will you be able to compare apples to apples.
  • Allocate costs and revenue back to each well. Granularity matters and is key. With granularity, mistakes of lumping costs under a wrong category can be avoided and easily rectified.
  • Missing information for the KPI’s? Introduce processes to capture and enter data in company’s systems (historically this information may be in presentation slides and personal spreadsheets).
  • If well information is scattered across systems, data integration will be needed. Well, AFE, Production, Reserves, and Accounting data will need to be correlated.
  • Automate the generation of information to executives. Engineers and geoscientist should not have to prepare reports at the end of each month or quarter to management. Their time is FAR better spent making money and assets work harder for their investors.
  • Know it is a change to the culture. Leadership support must be behind the initiative and well communicated throughout the stake holders.

“Once we implemented a look-back system, we funded successful teams more and reduced the budget from under performing assets, then we utilized the freed money to grow. We were a better company all around” – Former Officer of a Large Independent.

More Shale Data Should Equal More Production, Unless Your Data is an Unusable Mess

As the U.S. overtakes Russia in Oil & Gas production because of its unconventional fields, new operators flood the industry. Inevitably, competition increases. The need for predictable and optimized well performance is greater than ever. The fastest route to optimization is quality data that can be used to understand unconventional fields better and drive the flow of operations efficiently.

However, as more data pours in, the cracks in many E&P companies’ data management systems are exposed. Geoscientists and engineers are left to make their own integrations and correlations between disperse systems and left digging through folders trying to find documents for knowledge.

Some of the trouble lies in the new methods of analyzing vast array of data that were not considered as prominent in conventional fields. For example, geoscientists break shale down by geology, geochemistry, and geomechanics, and engineers now look into fracs using microseimic lenses. While this data was used in conversional fields before, the stress on and ways of analyzing them is different now; new parameters have emerged as key measures such as TOC and brittleness. When it comes to shale fields, the industry is still learning from acquired data.

Well organized (and quality) information that is easily found and efficiently flows through internal departments and supplying vendors, not only will allow for faster reaction to operation’s needs & opportunities, it will turn into better strategy to increase EUR per well through better understanding of the reservoirs.

How you take care of your data directly impacts your engineers and geoscientists efficiency and the speed they can find good production opportunities. Fast and efficient is the name of the game when it comes to unconventional and competitive world.

It is not enough to provide a place to store new unconventional information and flow it to analytical systems, while those are the first steps they must fit into a holistic approach that takes unconventional integrated operational processes to the next level of efficiency.