The significance of advanced digital systems for exploration and production has become more crucial than ever due to the price and demand pressures prevailing in the oil and gas sector.
The Oil and Gas industry is known for its complex and challenging operations. Businesses in this sector face numerous obstacles in their quest to maintain profitability and efficiency. Whether it’s ensuring compliance with stringent regulations, dealing with equipment downtime, or optimizing production processes, Oil and Gas companies must constantly find new ways to overcome these challenges.
According to recent reports, maintenance and repair costs account for a significant portion of the expenses incurred by these companies, with unplanned downtime costing up to $38- $88 million annually.
So what is causing such widespread unplanned downtime – and how can digital transformation help?
To address these issues, businesses are turning to innovative solutions such as Computerized Maintenance Management System (CMMS) software. This software has proven to be an effective tool for improving productivity, reducing downtime, and increasing equipment reliability in the Oil and Gas industry.
The utilization of digital technologies can aid oil and gas CEOs and leaders in reducing costs, increasing output, and minimizing carbon emissions. To implement these technologies at scale, CMMS plays a vital role in five significant aspects.
Maximizing Asset Availability
Managing and maintaining assets in the oil and gas industry is critical to ensure operational efficiency and reduce downtime. However, managing maintenance operations can be challenging, given the scale and complexity of assets across multiple locations. According to a study by Maintenance Assistant, implementing CMMS software can lead to an average 23% reduction in maintenance costs and a 28% increase in maintenance productivity.
CMMS software can help companies identify problems before they cause downtime, leading to cost savings and increased production. CMMS software can help businesses manage maintenance operations effectively, providing a centralized platform for tracking assets, maintenance history, and performance metrics.
This allows for better planning and prioritization of maintenance activities, reducing downtime and increasing asset availability.
Improving Technician Productivity
The oil and gas industry relies on a skilled and mobile workforce to keep operations running smoothly. However, managing a dispersed workforce can be challenging, especially when it comes to scheduling and dispatching technicians. According to a survey by Aberdeen Group, unplanned downtime due to technician unavailability can cost businesses up to $260,000 per hour.
CMMS software can help businesses manage their workforce effectively by providing a centralized platform for managing work orders, scheduling maintenance activities, and tracking technician availability. This enables better planning and scheduling of maintenance activities, increasing technician productivity and reducing downtime.
As Michael Krumlauf, Director of Customer Success at Fiix, states, “By automating the scheduling and dispatching of maintenance tasks, CMMS software can help businesses improve technician productivity by up to 50%.”
Optimizing Stock Levels
Managing inventory in the oil and gas industry can be challenging, given the vast array of specialized equipment and spare parts required to keep operations running smoothly. Maintaining an adequate stock of inventory is crucial to avoiding downtime due to a lack of parts or equipment. However, carrying excess inventory can lead to unnecessary costs.
CMMS software can help businesses manage inventory levels effectively, tracking stock usage and reordering parts as needed. This enables, businesses to optimize stock levels, ensuring that the necessary equipment and spare parts are available when needed, reducing downtime, and increasing productivity, as said by Scott Rojas, former Senior Sales Engineer at ManagerPlus.
Streamlining Regulatory Compliance
The oil and gas industry is heavily regulated, with stringent safety and environmental regulations that must be adhered to. Compliance is critical in avoiding costly fines and ensuring the security of personnel and the environment. However, managing compliance across multiple locations can be challenging, given the vast amount of data and documentation required.
CMMS software can help businesses streamline compliance by providing a centralized repository for all relevant data and documentation, such as permits, inspections, and audits. CMMS software can help businesses ensure regulatory compliance and avoid costly fines. This allows for better tracking and reporting, ensuring compliance with regulations and avoiding costly penalties.
Improving Operational Insights
In the oil and gas industry, efficient data management is critical to improving productivity, reducing costs, and identifying areas for optimization. As per the International Energy Agency, “data analytics can help oil and gas companies better manage their assets, reduce costs and enhance safety.”
By leveraging CMMS software, businesses can effectively collect, analyze, and store data to gain valuable insights into equipment performance, maintenance trends, and safety records. This data-driven approach enables businesses to make informed decisions, optimize asset utilization, and enhance operational efficiency.
Building The Right Infrastructure And Technology Backbone
In the highly complex and fragmented data management of the industry, successful digital transformation requires a comprehensive overhaul of the infrastructure, including CMMS software integration. CMMS plays a key role in optimizing maintenance operations and enhancing equipment performance, which is essential for achieving operational excellence.
Upgrading infrastructure, embedding technology-enabled operations, and integrating CMMS generate real value, improving efficiency across the value chain.
Look for a reliable CMMS software that is tailored to the oil and gas industry and has features that meet the unique needs of the industry. By incorporating CMMS into the technology infrastructure, oil and gas companies can streamline maintenance and increase uptime, leading to significant cost savings and improved profitability.
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