Data analytics is the best way to collect trustworthy information. What that data is will depend on which industry your business is a part of. For the oil and gas industry, data analytics often means gathering massive amounts of data—or big data—and determining how that information can influence your business decisions.
Big data is only useful if you know how to use and analyze it. Many companies gather data without knowing how to leverage it for the growth of their business. If your company collects big data, you must learn how to use it and what types of decisions the data can help your company make, along with the likely risks and benefits.
All oil and gas companies forecast. This step is crucial for predicting future trends, prices, productions, and market actions. However, if you’re not using data to influence your forecasting, you face a much higher probability that the forecast will yield inaccurate results.
Many companies use data analytics to create forecasts. Once you’ve collected the big data relevant to the predictions you’re trying to make, algorithms and other programs can do much of the heavy lifting. Such programs specialize in using historical trends and data to produce valuable insights and predictions that can make your forecasting more accurate and significantly reduce error margin.
Since data analytics help you make smarter decisions, you’ll notice a sharp drop in losses. That’s especially important for oil and gas companies, where improper forecasting can result in not only financial trouble but also physical dangers to your oilfield workers and the surrounding environment, resulting in massive fines and harsh penalties.
By equipping your company with better forecasting materials, you’re reducing risks for all your stakeholders. Data takes the guesswork out of real-time decision making. When you’re working on a deadline, data analytics can help inform on-the-spot decisions that can save your company time and money.
Many companies shy away from data analytics because of the misconception that you’re entrusting critical decision-making with computers instead of trained and experienced people. However, data is useless without experts acting on the data to make changes. Nonetheless, that fear is also why many companies fail to utilize data to improve the various aspects of their business.
Besides, data can improve productivity at every level of production. It can make your oil drilling more accurate and enhance the extraction process. Outside of the field, data also helps you decide on which shipping routes are most efficient. In the office, data can inform workflow processing and upcoming sales opportunities.
Resource allocation is an often-overlooked task for oil and gas businesses. While immense effort goes into acquiring lands, fields, and crude resources, it’s still equally important to keep tabs on those resources. That process includes knowing when and how often you use your available resources and when it’s time to perform routine maintenance.
If you use heavy machinery, data can help you track your equipment’s health and when they’re damaged or need replacing. Companies often know after their machinery has broken down, resulting in production delays and income loss.
Using data, you can avoid machinery downtime and determine more accurately how much of your budget should go towards fixing equipment and maintenance. If you’re trying to decide whether it’s more financially viable to replace a machine or repair it, data can also help you calculate the long-term costs of buying versus fixing a machine.
How to Get Started
While using data analytics can feel confusing and daunting, working with data experts is an easy way to get started. Big data is the best way to help you make informed decisions and calculated changes to your business. Hiring an oil and gas consulting company can help you implement big data to make these changes.
Although many companies believe that hiring outside help is an unnecessary expense, a high-quality data consulting company can more than pay for itself. Data experts can help you learn how to get big data, analyze it, and use that analysis to make better, more informed changes and decisions that will save you time and money.
Big Data and Your Company
Analyzing data for the first time can often feel overwhelming. However, it can help you make crucial decisions and changes that are more informed and more accurate. Data takes the guesswork out of predictions, forecasting, resource allocation, and more. It also helps you improve your productivity while still ensuring that you, not computers, make the decisions that matter most to your company. If you want to start using big data, working with a consulting company can help you harness data efficiently and use it the fullest.