An up-and-coming oil and gas behemoth, Texas is a key component of U.S. energy security. It leads three-tenths of our crude oil-refining capacity — and a third of all oil production.
A report by the U.S. Energy Information Administration (EIA) states a new-found resilience in the shale sector. This will create a significant surge in oil and gas production over the next few years.
Shale producers from the Eagle Ford Shale and Permian Basin are using technological advances and safe hydraulic fracturing – also known as ‘fracking’ to tap vast oil and natural gas reserves that were previously locked away in tight-rock or shale formations.
Extracting these new resources will continue to inject billions of dollars into local economies and will be the biggest single reason for a spur in the energy revolution.
This trend, in turn, will create a compelling need to implement long-term IT development solutions for mid-stream and downstream companies who are looking to find more significant control over processes and efficiencies across existing functions.
ERP Solutions in the Oil and Gas Industry
Enterprise resource planning (ERP) is an integrated way of weaving core business processes together, often by an intermix of software and technology, in real-time.
An ERP system can play a crucial role in automating, standardizing and digitizing processes in a volatile ecosystem such as oil and gas, where a systemic and cross-functional approach can offer a bird’s eye view of operations that impacts profitability. Further, it can facilitate error-free transactions and production, thereby enhancing an organization’s efficiency.
Houston-based energy companies looking to connect people, digital process and data can cut down under-performance, costs and wasted time by leveraging integrated ERP solutions that will allow them to move into the world market quickly.
Let’s look at the potential benefits of implementing such a system –
#1 Replace Customized Legacy System with a Future-Ready Platform
An easy to use, intuitive ERP integrated platform supports a company’s contract terms and business growth targets, manage resources, plan for what’s ahead, including risks and support multiple operations.
It cross-connect assets across other vendor supported gathering and management platforms to leverage synergies for itself and its customers.
#2 Optimize Business Workflows
Oil and gas companies need people, resources, and utilities to manage critical assets in their operations. Scheduling demands and short turnaround times need stringent processes and capabilities.
Through the three pillars of standardization, automation, and new technology they can eliminate costly customization that were inhibiting margin, growth and potential future revenues.
An ERP system helps gather valuable data in real-time to ensure resources allocated are optimally used with deadlines. Also, it can avert any potential crisis that may arise.
#3 Reduce Capital Cost, Complexity and Risk
A right ERP provides full visibility of a company’s financial position especially in areas such as AFE’s (Authorization for Expenditure) and Procure to Pay with specific governance needs. Further, there are modules for Purchasing, AP, AR, Invoice Workflow, Fixed Assets and Integration with Quick Books that give control of complete CAPEX spend.
Companies can use ERP software to identify project risks well in advance and accelerate risk response with integrated risk reporting and remediation.
# 4 Business Analytics Integration
An ERP system can embed analytic tools with internal applications to monitor performance. With technology, companies can predict trends and identify new opportunities based on master data integration and other data conversion activities.
In a complex, ever-changing market such as the energy sector, an ERP system aligns to the nth degree to your proven business processes. Our consultants at Terra ATS have over 40 years of combined experience helping businesses put in place customized ERP solutions to your specific needs.
Schedule a call with us today to help us build the perfect oil and gas ERP system for your company.