Regardless of what industry you work in, studies have shown those who embrace the use of data and analytics perform better. This is especially true of the Oil & Gas industry where so many variables can determine your success. A recent Bain study supports this by revealing that companies with better analytics capabilities were:
- 2x as likely to be in the top quartile of financial performance in their industry
- 5x more likely to make decisions faster than their peers
- 3x more likely to execute decisions as planned
This all translates to greater efficiency, increased production, and higher profits. At Drillinginfo we wanted to see if this hypothesis holds true for our customers, so we set out to answer a simple question: Do Drillinginfo customers perform better than non-customers?
What we found
Analyzing 455 US/Canada exchange-traded oil & gas companies we found that Drillinginfo customers had a Y/Y stock price return that was 21% better than non-customers. We also found that among our customers, those with more advanced products had better returns than those with our basic offering. For example, shares of DI Plus subscribers performed 36% better than those of DI Basic customers, and shares of DI Analytics customers performed 25% better than those of DI Plus customers. The most dramatic difference we found was with customers who use a more complete suite of products. Those with four products had returns four times better than those with one product. These are impressive results and just prove what we already knew – leveraging the power of data and analytics is crucial to being successful in Oil and Gas.
If using data and analytics is so great why doesn’t everyone do it?
Well, the fact is that implementing a data driven strategy can be difficult for many companies. One of the biggest challenges companies face is dealing with disparate datasets that do not efficiently talk to each other, resulting in a process that is so time consuming it never gets done. The workflow from data collection to analysis to insight to value creation is simply too cumbersome and inefficient to implement. The key to removing these barriers and unlocking the power of analytics is to build an infrastructure that makes using data easier than not using data. That is when you start making decisions five times faster than your peers.
So how do they do it?
All companies with a successful data and analytics driven strategy rely on three crucial pillars: people, process, and technology. Each is hugely important and like a three legged stool the system breaks down when one is not working.
At Drillinginfo we focus on technology, but consciously design software around how it complements the other two pillars. For example, the importance of having a skilled workforce that is able to interpret and take action on a data driven insight is important; however, as a consequence it requires that you raise the bar for employable candidates, making hiring decisions that much more difficult. To counteract this, Drillinginfo builds products and features such as the Decline Curve Analysis tool in Production Workspace which makes insights easier to uncover and visualize, requiring less specialized skillsets and increasing the pool of qualified candidates.
The process side of the system usually breaks down due to poor communication and collaboration between departments and key stakeholders. Drillinginfo has refocused its development towards combating this common problem by building tools that facilitate teamwork. In our upcoming Production Workspace releases we will be introducing new sharing and collaboration tools that will help cross functional teams work together. DI Transform has already proven an invaluable tool for cross discipline collaboration and this strategy will extend to our other products.
Ultimately, Drillinginfo focuses on creating the best technology that is both powerful and easy to use. The Production Workspace platform is the future of Drillinginfo and will soon house all of our data. Housing disparate datasets under one roof creates a synergistic effect that takes business intelligence to the next level providing insights you never thought possible. Watch this short case study demonstrating this powerful effect and see how combining land research with economic analysis tools could change how your organization makes decisions:
To download the case study click here
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