8 Critical Points of Integration for Oil & Gas Operations

www.totalstream.com
8 CRITICAL
POINTS OF
INTEGRATION
for Oil & Gas Operations

Presentation © 2015 Total Stream Systems, LLC
Introduction
In any oil & gas operation, stakeholders and
contributors alike are impacted by the flow of
information. Visual access to information needs to
be readily available for the planning, execution, and
success of all projects and endeavors.
Without a solid strategy to keep information properly
connected, getting one’s company to work with a
proper focus on the assets can be a difficult task.
We’ve compiled some key points of integration that
enable a harmonious flow of information through the
entirety an operations activity cycle.

Have an Asset
(Well/Facility)
Master
#
1
It is critical for all information elements to be tied
to the same source (a single source of truth for all
aspects of a well header).
The Asset Master should be the starting point for
all facilities and wells being tracked throughout the
operational cycle. This should include all attributes
that are critical for report writing in every segment of
the operation.

Presentation © 2015 Total Stream Systems, LLCPresentation © 2015 Total Stream Systems, LLC
It should also should have the ability to tie AFE
numbers to the financial system and collect daily
project cost information from drilling and well
work systems against that same baseline chart
of accounts. The AFE system should be able to
differentiate between drilling costs, completion costs,
LOE Costs, facility costs, tangibles and intangibles.
AFE System
Should Have
the Same
Chart of
Accounts as
the Financial
System
#
2

This is so that the schedule always reflects
appropriately scheduled costs to be incurred. This
integration point will give greater insight to anticipated
costs than simply using the forecast. A schedule tends
to track the realities of executing on a plan closer than
the plan itself.
Rig Schedule
Should Tie
to the Well
Master and
AFE System
#
3

Every asset requires equipment to produce oil and
gas (compressors, pumping units, separators, tanks,
meters, etc.). Those items are often transferred from
an inventory yard to an asset (and vice versa) and
have financial implications in their management.
Ensure that your equipment system of management
always ties to a single Asset Master and your
equipment catalog ties appropriately to financial
accounting.
Equipment
Management
System Should
Tie to a Single
Asset Master
and Financial
System
#
4

And the cost capture on those activities should always
tie to the financial system via the AFEs set forth for
each project.
Daily Drilling,
Completion,
and Facility
Activity Should
Tie to the Well
Master
#
5

It should also be capable of allocations that can be
sent to accounting for processing on a monthly basis.
All daily data capture should support the monthly data
capture, which in turn should support the accounting
and regulatory reporting processes.
Production
Daily and
Monthly Data
Should Always
Tie to the Well
Master
#
6

Your reports need to be readily available and easy
to send to the decision-makers that have influence
on the profitability of the company. Sometimes, even
distributing to the pumper level of the company is
desirable, so that the assets a person or group is
responsible for can have easily viewable financial
scorecards.
Profit/Loss
Reporting
Should
Be Easily
Distributable
#
7

A cross-reference to land records for every producing
asset can result in significant savings from a lease
management perspective . (Shut-in reports, etc.)
Producing
Assets Should
Tie to Land
Records
#
8

Conclusion
There is no doubt, and studies verify, that those who
employ integrated data management strategies reap
the benefits of timely accessibility to key information.
By acting upon these strategies, they also enjoy
greater insights that lead to profitability.

GAIN INSIGHTS THAT WILL MAXIMIZE
YOUR PRODUCTION AND OPERATIONS.
Our staff of experienced professionals is happy to
consult with you about data management practices
and solutions. Feel free to contact us with any
questions you may have.
info@totalstream.com
888-554-5777
www.totalstream.com

8 Critical Points of Integration for Oil & Gas Operations

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