Upstream oil & gas production involves specific requirements and business processes that are unique to this industry. Unlike in the downstream sector, business processes in the upstream oil & gas sector are not well integrated. This is partially due to organizational issues and partially due to the fact that upstream organizations typically use a handful of best-in-breed applications and numerous Excel spreadsheets, rather than a well-integrated solution.
These business processes include work-over management, production planning and allocations, contractor management and maintenance scheduling, production reporting, and others. Without clear visibility into field variables and constraints, operations planners don't have the information they need to make the best decisions. This often results in sub-optimal planning, inefficient use of both physical and human resources, higher costs, and increased risk.
As ARC Advisory Group learned in a recent briefing, SAP has targeted this problem by developing an Upstream Operations Management (UOM) solution that the company has integrated with other SAP products to provide interoperability across systems and processes and visibility into upstream operations, maintenance, engineering, and planning. The ultimate goal, of course, is to help maximize monetization of hydrocarbons.