The oil and gas industry is one of the most asset-intensive industries in the world, thereby incurring enormous expenses to purchase, maintain and repair them. Many industries rely on oil and gas as they act as the energy that powers up machines and various equipment in other sectors. Hence, the pressure for oil and gas to operate consistently without errors is far greater. Attempting to keep up with all the various operations manually can be overwhelming, as there is a tendency for errors or delays to occur. An Enterprise Asset Management (EAM) system helps managers automate such time-consuming processes and reduce overall costs. This article discusses EAM solutions being incorporated into oil and gas companies.
Why Implement an EAM in Oil and Gas Companies?
According to a report released by IBM, oil and gas companies infuse a range of sensors to monitor their operations in today’s world. This makes the two industries hold an enormous amount of data which, if not utilised properly, is a complete waste. Using that data, asset managers can now comprehensively understand the nuances of each process carried out by smart devices but can take measures to ensure all assets are well functioning. However, this cannot be done in a traditional environment without complete visibility. This is where an EAM solution helps the oil and gas industry. Here are five specific reasons why oil and gas companies should implement an EAM solution:
Take Steps to Avoid Asset Breakdowns
When assets in any industry break down, it halts everything in a company’s operations. Consequently, the increase in downtown leads to waste being generated. The biggest fear for an asset manager is the uncertainty of when the broken asset will be back in operation. Assets that also completely break down will require expensive repairs, or where the damage is irreversible, a new machine will have to be brought for it to be replaced. Where it is repaired, the asset may still be prone to more breakages due to decreased asset lifecycle. All of these problems can be removed, however, if an EAM is in place. An EAM integrates the sensors used in a site to monitor the condition of assets in real time. Any minor fluctuations in the machinery performance can therefore be detected and informed to the asset manager. Where the fluctuation indicates an impending anomaly, the asset manager can easily schedule maintenance and dispatch the team for it to be repaired before the issue completely forms. Hence, asset managers are given the ability to control the performance of machinery and prevent them from breaking.
Avoid Carrying Out Maintenance In Advance That Could Potentially Decrease The Life Cycle of Assets
Moreover, each asset requires routine maintenance to perform its best consistently. Sometimes, there is a tendency for managers to schedule such maintenance on a specific date every month instead of taking the time to understand when the asset is actually in need of maintenance. In other words, as no two assets function the same, it is wrong to base a decision to carry out maintenance simply because the assets are used for the same function, are produced by the same manufacturer and were brought on the same day. The advanced features of an EAM will study the minute aspects of the asset and inform the manager of the correct time each asset will require maintenance.
Smarter Production
As with any industry, specific seasons require gas and oil companies to amp their production due to increased demand by the market. Rather than taking guesses and making presumptions, an EAM gives managers the ability to decide to either increase or decrease production with over 90 per cent accuracy. This is done by the data analytical capabilities embedded in a powerful EAM solution, whereby detailed reports can be produced. The power of Artificial Intelligence (AI) together with Machine Learning (ML) can assess historical data with current data and predict market changes in the industry. It considers a range of variables in making this prediction, including the changing consumer patterns in the market. Hence, managers can make data-driven decisions on how much production should be carried out during each season. This way, the manager has more control of the resources and finances incurred for a specific month. Ample time is given to organising in-house operations so that oil and gas industries can ensure they meet the target sales.
Embracing a Sustainable and Healthy Environment
The gas and oil industry are significant contributors to pollution and carbon emissions. One way to reduce their carbon footprint is by ensuring all production processes ensure quality. In other words, quality production indicates that healthy practices are adopted in the workplace. To ensure quality is maintained, all assets must be in top-notch shape. A natural result of infusing EAM into a company is that it warns managers of impending risks in assets so that the team can take preventive measures to curtail them. This also helps create a safe working environment for employees who will no longer have to subject themselves to hazardous situations to monitor the condition of assets manually. Thus, through automation, companies in the oil and gas industry can meet the industry’s safety standards. Moreover, the data processed by EAM software can also monitor the number of emissions emitted by each process. Having access to such information helps companies understand their contribution to pollution and take steps to reduce their carbon footprint.
Increasing Transparency
What makes an ERP solution ideal is that it can process all the data it receives because it is brought into one integrated platform. This means the isolated data collected by smart devices can now be merged into one central place. As a result, managers, stakeholders and other parties can receive full visualisation of the entire gas and oil factory. A good ERM solution allows the company to access all company data from any remote device that has authorisation. Hence, the decision makers or managers in the company can easily monitor the processes and assess data flows from anywhere around the world. This increases the company’s transparency as the company can monitor each employee to ensure they are doing their work as required. Based on the reputation of the ERM software vendor, managers can also rely on it to guarantee that enhanced security protocols are implemented to increase data security.
Proactive Maintenance Is the Way to Succeed
EAM is the perfect solution for oil and gas companies to reduce the overall time, resources and costs incurred for their operations. By embracing proacting maintenance, you can now take control of eliminating breakdowns, downtimes and any waste generated. The advanced analytical tools help you intricately understand your assets’ condition and the environmental impact you create. It also allows you to consider the changing market or consumer trends to make smart decisions. However, remember that the quality of an EAM depends on the software vendor. Opting for a recognised digital solution in Singapore, such as Tigernix, is one way to ensure that the above features can be gained.
