Volatility in the Oilfield – STILL

The only constant is change. As the oilfield falls off into another market trough, or should I say cliff, the only unexpected facet is timing and how quickly the world market has its effect on a prolific national US industry. We know two immediate changes will occur;

  • Curtailing of capital spending (CAPEX)
  • Hyper focus on operational spending (OPEX)

Most oil companies can easily slow CAPEX; stop drilling and completions and any new facility enhancements. However, having hyper focus on OPEX is difficult due to a blurred line of sight into field operations. The simple fact is companies who are invested in many basins to lower overall risk, do not and will not operate those basins consistently. Legacy systems adorn the different basins due to M&A activities and field leaderships’ ability to independently approve enhancement spending.

A solution exists. The current companies on the ENGAGE solution have access to collaborative real-time line of sight, down to any particular truck or technician doing work and affecting OPEX. Knowing your business usually means doing the same work load with less. What might have taken 100 trucks to complete, could easily take 80 with the proper solution in place. Thus, with an initialized corporate dash board, leadership can track minute to minute spending. Let’s agree, leadership can no longer wait 30 to 60 days of accrual tracking to ensure a change in OPEX actually happened.

The real impact value is the ability to align a quickly changing market with a very necessary hyper OPEX focused strategy and confirm this internal strategy is happening in real-time.

Other ancillary and important aspects of the ENGAGE solution:

  • Real transparency into OPEX
  • Behavioral change with vendors
  • Lower carbon footprint
  • Improved order to cash window
  • Non-reliance on invoicing mid-ware for information
  • Government compliance such as Colorado’s Regulation 7
    • ENGAGE – REAL. SIMPLE. TRANSFORMATION.
      Scott Ratchinsky
      ENGAGE
      Chief Customer Officer