In our experience, Exploration & Production (E&P) firms spend far too much time and money tracking down the key data that validates revenue sharing because they are lacking good
energy software. Each well has differing levels of financial interest for completion, and oil and gas production increasing exponentially, so companies need to ensure that their allocated production volumes are accurate. But with theoretical production numbers, reported production numbers, sales volumes, well-test results and raw field allocations (and more) scattered across the organization it’s nigh on impossible to make heads or tails of the gulf of information that’s actually already available.
Entrance architected an intelligent
Production Operations Database solution customized to meet the needs of upstream oil and gas companies looking for accurate, in depth insight into the operational status of their assets. Our system gathers essential operation and production data into a central location and provides users with information that’s tailored to their needs. For instance, when performing calculations to create user-specific reports, our database takes into account geographical, pipeline, and legal reporting hierarchies associated with operating in the Gulf of Mexico. And because of the importance of completion to the financial implications of this data, we use completion as the moment of impetus for starting calculations.
Flexibility
Flexibility is the key to knowing that an information solution will be a good long term asset. Our production operations database (POD) is able to source data from any production or operations system source available. It then processes that data to provide relevant information on user demand, and can either expose calculated or raw data or export directly to a variety of third party tools.
Centralization
If data is not centralized, time is being wasted gathering the inputs needed to make decisions. Our system creates a location for centralized data storage. For every property in which our customer has a production interest, theoretical production, reported OGRE (Oil Gas Reserves Evaluation), production and sales volumes are tracked whether the leases is operated or not. Because of all the data now at hand, the solution can easily aggregate data no matter the level: be it area, block, lease, well or completion. For raw production data, POD can accept the field allocation performed by our customer or their partners or perform a pro-rata allocation based on well-test results. This leads to a number of on-demand reports, which are then able to export into third party tools or even provide insights directly.
Because we calculate gross and net volumes at the well completion level, users can build from that granular level to larger levels of overview on demand – as well as drill into the details from a management overview perspective. At Entrance we believe that the key to providing value lies in understanding our clients’ businesses and in this case, our centralization strategy also enabled a larger data-building strategy that keeps users in the know about production data at any level needed.
Auditing
The business goal of our production operations database lies in the ability to audit the results of field allocations over which they have no control. Our solution is able to assemble a variance report by comparing field allocation results to well test volumes, while adjusting for downtime etc. The report helps our customers flag rises or falls in production in comparison to expectations. Empowered with this information, management can decide whether to request additional well tests or even perform a formal audit to validate allocation results.
For more on using energy software to refine processes and improve data management, check out this post…
