Oil and gas companies used to consider cost management only during struggling times.
Oil and gas companies used to consider cost management only during struggling times. But now in our new low oil price reality, it is standard operating practice for operators and contractors to constantly find ways to reduce costs in uncertain times.
With the emergence of disruptive innovations such as robotic process automation, analytics and cognitive technology, cost management is morphing into a strategic enabler with the power to disrupt entire industries and fundamentally change business, according to Deloitte.
However, cost management remains challenging
Based on surveys of more than 1,000 senior executives across the globe — Deloitte found cost reduction has become a standard business practice with 86 percent of global respondents saying their companies are likely to undertake cost reduction initiatives. Nearly half of all organizations surveyed are pursuing cost reduction targets of less than 10 percent yet almost 63 percent are failing to achieve their goals.
FutureOn®’s FieldTwin™ technology is an intelligent platform designed to help with cost management by building an exact digital copy of an oil and gas company’s physical assets on a single platform, enabling greater collaboration among teams working at a higher speed on an oilfield project from development to decommissioning. In fact, FieldTwin™ deployed operationally in real-world fields reduces pre-front- end-engineering design time and investment by as much as 60 percent.
FieldTwin™ enables engineering companies to effectively design early concepts of offshore oilfield projects that are then handed off seamlessly to the construction teams and oil and gas operators to construct and maintain. This process happens all in a matter of weeks, as opposed to months or longer because teams are working from the same single data platform. This results in cost savings for both contractor and operator.
For example, our customer McDermott recently designed and delivered four early design concepts to an oil and gas operator using our technology. Before implementing FutureOn®’s technology, McDermott’s team would likely only have delivered one design because of limitations of its traditional design methods.
In our new reality of a barrel of oil fluctuating in price unpredictably, the oil and gas industry is looking for new tools, as well as new approaches to budgeting, forecasting and reporting, according to Deloitte. Oil and gas operators can budget FieldTwin™ as an operational expense rather than a capital expenditure (CAPEX) to avoid carrying over the expense on the company’s balance sheet year after year like other technologies such as robotics or Internet of Things (Iot) sensors.
Cost solutions based on next-generation technologies such as FieldTwin™ are only emerging and have the potential to deliver increasing savings over time. Contact us today to help you achieve your cost reduction goals.