In view of the increasing competition and narrowing margins among oil and gas companies, asset management is obtaining greater relevance in enhancing operational efficiencies, according to GlobalData.
The company’s latest thematic report, ‘Asset Management in Oil & Gas’, discusses the growing necessity to implement a comprehensive asset management strategy in the oil and gas industry.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, comments: “Asset management provides a structured methodology of creating, operating, maintaining and decommissioning assets in a cost-effective way. Modern oil and gas facilities are being set up on a larger scale than before, having higher production and storage capacities, to insulate them from market volatility and improve long term profitability.”
“A well-designed asset management plan becomes even more important for projects such as these in achieving their eventual objectives. Asset management solutions are not bound by restrictions of scale or geographic distances and can be implemented to oversee multiple establishments from a centralized location. These solutions can help reduce equipment downtime, inventory control, resource management, save costs, and meet legal and regulatory compliances.”
The industry also has to manage aging infrastructure to extract optimum performance from them while minimizing health and safety risks.
Puranik continues: “Asset management solutions can play a pivotal role in making this happen, along with ensuring that operational costs are kept in control. These solutions also improve the overall uptime and performance of assets and prolong their operational life. Moreover, the growing need to curb greenhouse gas emissions from oil and gas operations is giving added impetus to implementing asset management solutions.”
The alignment of important strategic and investment objectives with efficient operational and project management procedures is of paramount significance for oil and gas businesses to maximize the value of an oil and gas field throughout its life cycle. This may include aspects such as efficient capital and operating expenditure management, maximizing production levels, and extending a field's life. In making these strategic decisions, asset management solutions can help oil and gas companies reduce costs and mitigate operational risks. A sound asset management plan can provide a holistic approach towards enhancing visibility, collaboration, performance and generating higher value from operational expenditures.
Puranik concludes: “Asset management can effectively address all core priorities of oil and gas companies – improving operational efficiencies; protecting the environment and its ecosystems; and health and safety of the workers. It is clear that operational efficiency is one of the primary driving forces behind the increasing wave of investment within this technology application.