Oil and Gas Challenges Met with ERP Software

CIOs of oil and gas companies understand the importance of capital project investment for long-term business sustainability. However, given the dynamics in the oil and gas industry, CIOs need solutions that will help them successfully manage company projects and still remain profitable. Most CIOs are turning to oil and gas ERP software.

With the ever-fluctuating global demand for energy, growing calls for alternative energy sources and rising production and exploration costs, oil and gas companies that wish to remain competitive are rebuilding their older infrastructure and incorporating new technologies to improve production. By using ERP solutions, the companies are able to see current projects to completion and still remain competitive.

Most ERP solutions have project management modules that enable CIOs manage projects of various sizes and complexities. The ERP can be integrated with other critical systems to ensure accurate information for each department involved in a project. The result is better collaboration and streamlined decision-making at all levels of the company.

Get Business Insight at All Levels with ERP Software

Even as global demand for energy fluctuates, oil and gas companies must still plan and execute current and future projects to drive their businesses ahead. To do so efficiently, they need to answer a number of questions:

a) Is the project team working as a "team"?

Productivity and budgets can be eroded due to poor communication and lack of standardization. Companies can use ERP software to standardize processes among contractors, partners and business units.

b) How can the company mitigate the effects of a shrinking labor pool?

ERP solutions enable oil and gas companies to get the most out of their shrinking workforce by improving employee productivity. Managers can plan and allocate resources in a better way, ensuring timely and efficient use of resources.

c) What are the risks involved in a given project?

All projects come with a certain degree of risk. The challenge for managers is how to access, manage and proactively mitigate the risk. ERP solutions provide useful analytics that enable managers to predict the likely outcomes of a project, and in the process avert costly and time-consuming mistakes.

d) What capital projects should be authorized?

The dynamics in the oil and gas industry require increased analysis and a higher degree of rigor before investing in exploration and capital projects. ERP solutions provide the accurate data you need for identifying, scheduling and selecting the right upstream and downstream projects to meet the company's short and long-term objectives.

ERP Solutions for Oil and Gas Companies

More than 90 percent of oil and gas companies use ERP software to manage their projects. These powerful solutions are easy to use and scalable for projects of all sizes. Their benefits include:

a) Integration with ERP Applications

Oil and gas ERP solutions can integrate easily and align project budgeted costs and schedules in other third party user-friendly applications. The solutions help companies to meet critical delivery dates and reduce project risks by effectively forecasting and managing costs, resources and schedules.

b) Risk Analysis

Organizations can use ERP solutions to understand and plan for project risks in advance using various costs and schedule analysis modules. Companies can get comprehensive information on the success levels of a project and quickly come up with effective risk response and contingency plans. For example, ERP can support project governance and financial planning by analyzing the cost and schedule impacts of mitigation scenarios, model risks and calculate most-likely completion times.

c) Project Portfolio Management

Oil and gas software provide a powerful yet easy way to manage a company's project portfolio. The software enables companies to manage schedules, costs and resources across all projects, ensuring projects are delivered within budget and on time. Moreover, the solutions provide accurate project execution and appropriate visibility at all levels, enhancing collaboration and managements of tasks across departments.

By implementing ERP solutions in their operations, oil and gas companies can ensure they choose their projects wisely. Apart from this, ERP solutions can help companies mitigate risks associated with various projects, improve employee productivity and reduce operational costs. Oil and gas companies looking to remain competitive in the coming years will have no option but to integrate robust ERP solutions in their operations.