Why data management is more important than ever

Brice Bouffard, vice president, information management, and Lester Bayne, product director, information management, both of Schlumberger Information Solutions (SIS), explain with examples from real E&P projects how a holistic approach to information management adds value and why, now more than ever, this approach is vital to governments, operators, and, indeed, all players. Information management (IM) has traditionally been viewed as part of the information technology (IT) cost centre. But this view is changing, both in business in general and in the E&P industry, as organizations recognize data as a critical asset that, when properly managed and with a view to addressing specific business challenges, provides significant competitive advantages. Webb (2005), also of SIS, recently discussed the importance of a holistic approach to managing E&P data. Previously in this publication, Bouffard (2004) focused specifically on the value of transforming national data repositories (NDR), passive receptacles of a country’s E&P data, into national data centres (NDC), systems with enhanced information management including public access to data and applications. This evolution of NDR to NDC makes it an essential asset for marketing opportunities to potential investors and also a valuable data source for E&P professionals working within a country (Gmyzin and Bouffard, 2004). This article looks at predictions previously made, the progress realized, and the value added in approaching IM holistically, including with respect to NDC implementations. Reducing IT costs vs. reducing total operating cost With oil hovering around $60 per barrel and operators reporting record profits, it might be difficult for an industry outsider to see cost as a reason not to invest in IM. But those of us inside the industry understand the cyclical nature of our business (it was only seven years ago that oil was floundering around $10 per barrel) and recognize that reduction of costs remains a persistent goal. However, instead of targeting individual costs, it is the authors’ position that the goal should be to reduce total operating cost, the cost to find and produce a barrel of oil, or stated in today’s terms, the barrels found or produced per dollar invested, or per available resource. It is in these terms that the value of IM must be measured. And given the unique challenges the E&P industry is now facing, the case for a holistic approach to IM is quite compelling.