Upstream (E&P) Asset Management
The Upstream or Exploration and Production supply chain covers multiple regions, with varying processes and regulations, driving a lack of standardization which in turn creates inefficiency.
The upstream or exploration and production (E&P) segment of the oil and gas industry is considered the most technologically intensive and complicated spaces in the industry, involving a very risky search for natural resources and their consequent extraction from reservoirs.
Context & Challenges
Exploration & Production (E&P) companies operate in multiple distinct regions, each with varying processes, operations and regulatory requirements. The upstream process demands the drilling of wells hundreds of miles offshore, often in geopolitically-unstable areas and extremely regulated jurisdictions, further complicated the effect of their number and variety,
While wells are operated by energy companies, the extraction and production of resources necessitates around 30-40 separate companies, if not more. Each of these work with distinct deliverables, performance metrics, and contract details which can create huge friction when it comes to coordinating and reconciling payment. Each of these regions use a set of standards and technology systems tailored to their specific activities, creating a unique asset management challenge that can result in large, unexpected write-downs during annual inventory checks.
As a result of its complexity, the upstream segment faces a number of challenges,
Reconciliation in general is incredibly slow, labor-intensive and highly manual for the upstream segment. Any single unit of resource is connected to a colossal amount of disconnected data, which can make it near impossible to track and reconcile data. This in turn leads to complications around financial reconciliation.
Identity and certification is also a concern. Workers on oil rigs require very specific certifications the data on which must be taken from a huge variety of sources, meaning that it can take 45 days to verify that a well or rig has been staffed appropriately.
Field Capture Errors are also growingly common, with field personnel often making errors when entering data on oilfield tickets which are at the center of inter-party communication, data tracking, and maintenance records. Error rates tend to hover around 25-30%, driving increased need for reconciliation. Many of these errors result from the fact that data is often uncoordinated, incomplete, or inaccurate.
The segment involve four key stakeholders: Majors, the larger international oil and gas companies owning most activity, NOCs or National Oil Companies, Independents, which operate only within their assigned segment and in upstream often provide concentrated E&P skills, and Oilfield Services, which provide equipment, support, and skills.
STRATO would provide a host of benefits for the upstream E&P supply chain, beginning with a single source of truth for asset information based on a unified data structure used in each region. Other benefits include:
- Asset standardization – a separator is a separator
- Allow regions to work independently to meet standards and extend asset data beyond HQ needs as necessary
- Forecasting and automating maintenance and inspection activities
- Time-stamping data for regulatory compliance
- Maintain existing systems, creating little-to-no change in existing systems & tools
Any STRATO insurance solution leverages STRATO's enterprise grade features
RESTful APIs for direct connection of IoT devices such as storage providers' iPads to the blockchain network
Identity Management, OAuth and SSO capabilities for simplified IoT authorization and user login
Privacy via private chains to keep sensitive data private and control who sees what data
Enterprise Data Modeling for integration into existing data systems, and to ensure interoperability