Does the Oil and Gas Industry Need Facilities Management? Yes, and Here’s Why.
Regarding facilities management, the first businesses that come to mind are probably enterprises, higher education institutions, or healthcare. While all these sectors rely on FM technology to keep their facility running efficiently, other industries, such as oil and gas, are often overlooked. Environments that require stringent regulatory guidelines, security, and safety, can fall victim to compliance and maintenance issues without the proper technology in place. So, does the oil and gas industry need facilities management technology? The short answer is yes. Today, our team of FM software specialists discusses the importance of FM software and strategy for the oil and gas industry and how modern technology can keep employees safe while propelling industry growth.
A Current Overview of the Oil & Gas Market in 2022
Before diving into the importance of facilities management for oil and gas, it’s essential to get an overview of the current market. With turbulent costs and economic fluctuation throughout the United States, the market is seeing frequent changes. According to a 2022 outlook by Deloitte, there are five trends that will be prominent throughout the oil and gas industry in the coming years, outlined below:
- High oil prices will boost energy transition plans, challenging conventional solutions.
- Environmental, Social, and Governance (ESG) criteria will play a significant role in mergers and acquisitions.
- Business models will shift to enable a new energy era.
- Convenience and experience will supersede fuel as the latest attraction to customers.
- Greener jobs and differentiated benefits will help secure a solid return to the workforce.
Currently, the U.S. is the biggest oil producer, with a 23-year streak beginning in 1998 (2022 has not been calculated), averaging an output of 16.5 million barrels per day. As a result, this makes it imperative that O&G organizations run as efficiently as possible to ensure that production can be maintained.
Operation Management for O&G Facilities Management
One of the primary ways that facilities management software assists the oil and gas industry is through operational assistance and maintenance management. With rising oil and gas prices, many companies traditionally rely on the additional revenue to keep their projects sustainable; however, increasing efficiency has become an integral part of revenue growth. Ensuring that you have a substantial ROI for your technology investments is critical, and focusing on efficiency, consolidation, and digitization is one of the best ways to get there. In recent years, the total annual direct cost of corrosion for O&G facilities has totaled $3.7 billion, with maintenance-related expenses accounting for $1.8 billion of that total. Furthermore, the O&G industry spends an average of $589 million on facility costs. The reality is that O&G facilities need a comprehensive, modern solution to minimize costs, drive revenue, and improve sustainability efforts.
Enter, Intra. Intra is our complete facilities management and logistics platform, serving enterprise clients from various industries. We understand that each industry’s FM needs are unique, so we developed Intra as a completely configurable solution to solve industry-specific pain points. For O&G, asset maintenance, minimizing production costs, talent acquisition, and environmental concerns are major industry pain points. Our Asset Logistics and Workplace Services Workgroups are just a few solutions that can help streamline facilities management for your O&G facility.
Asset Maintenance for O&G Facilities Safety
For the oil and gas industry, one of the most prominent issues currently faced is proper asset management and maintenance. Due to the complexity and nuances within the industry, proactive asset maintenance is necessary to avoid high costs. Many oil installations are offshore and not easily accessible, and with reactive maintenance essentially not an option for O&G organizations, investing in asset maintenance is vital. Consider common maintenance issues, such as breakdowns and ruptured pipes, blowout preventer failure, and small vessel spills. If these are not handled immediately or preventatively, high financial, environmental, and even legal costs can ensue.
With Intra, we have created full-service asset management workflows to help you monitor asset lifecycles, mean time to repair, mean time between failure, and more to help you continuously monitor the health of your assets on both a macro and micro basis. On a smaller scale, unusable assets also result in accelerated asset depreciation, halted production, missed deadlines, and more. According to Forbes, automation is expected to save the oil and gas industry $73 billion through 2024, significantly impacting the way daily tasks are completed.
Data & Analytics to Improve Strategy and Recruit Talent
If there is one thing that is driving the future of business strategy, it’s data. Not just numerical statistics but comprehensive, digestible, and action-oriented business intelligence metrics. Business intelligence combines business analytics, data visualization, infrastructure, and best practices to help organizations make data-driven decisions through analysis that is easy to understand. When it comes to the O&G industry, this can skyrocket facility success. Outside of proactive maintenance analytics, company and customer profiling tools through data have become a fantastic opportunity.
Companies often go off industry trends for their business model and promotional schedules without business intelligence technology. But what if you could get individualized insights on your customers’ or partners’ past purchasing behaviors and identify which areas of your O&G organization are excelling or falling short of projections. With Intra, you can monitor these metrics, as well as unique internal KPIs and external SLA requirements through our analytics dashboard. The ability to harness data like this assists your O&G facility in multiple business aspects, including goal setting and strategy, effective operational costs, and revenue increase. 65% of Gen-Z wants to create something world-changing through a company they’re working for and value the commitment to sustainable causes, especially in the STEM field. By implementing data-driven technology for growth, you will stand apart from competitors, searching for the best talent in the market and place your organization as one of the most influential and future-driven O&G businesses.
Begin Your O&G Facilities Journey with SCLogic
For the O&G industry, facilities management may not be at the top of your priority list. However, with increasing investment in technology across the industry, now is the time to set your facility up for success. With over 25 years of working with organizations in healthcare, government, manufacturing, and more, our team has navigated the complexities and industry changes of FM technology, getting better each year. Our logistics software, Intra, has a distinct focus on solving the individualized pain points of each industry while making the employee experience and adoption process as seamless as possible. To learn more about our workgroups, how we work with the O&G industry, and how we can help your facility, email [email protected] or schedule a demo with one of our team members.