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Going Digital, Much More To It Than Just Capturing Data Digitally
by Robert D. (Bob) Kiker, PTTC Texas Permian Basin Director

"What are pumpers in the Permian Basin doing with regards to using hand-helds or laptops to capture their field data, or are they still relying on hand-prepared reports?" This straightforward inquiry led to a survey, primarily of Permian Basin operators. Operators ranged from very small independents to large independents to majors. Visits were with company owners, pumpers, production engineers, field foremen and office accounting managers.

This article focuses on the field perspective and production accounting, while acknowledging that financial accounting exerts significant influence on the systems selected.

Consider this an interim report with more visits planned since technology is improving and more oil and gas operators are initiating pilot programs using hand-helds and laptop computers for data gathering and transmission. There are many different perspectives represented in the results so far. If asked to state just one conclusion, the title of this article expresses it well.

Objective of the Survey
The objective of this survey was to: (1) accumulate information on the techniques/methods operators in the Permian Basin were using to collect, record and transmit daily production (oil, gas, water) and other associated operational data; and (2) determine if the methods employed correlated with size of the operator (operations) and/or location (remote or centralized).

The first objective involved visiting operators both in their production offices and field offices. Also a significant amount of information was gathered by telephone. This has been time consuming but rewarding. Below is a list of the companies contacted, followed by a list of companies where some information was gathered. Overall, I talked with 18 different operators, making 25 visits.

Regarding Operator Size and Location, The Survey Reveals: No direct correlations could be made with the method employed. Why?
Practices are in rapid flux, being strongly influenced by continued

disruptions from mergers and buy-outs. The two factors that exert the strongest influence on what companies are doing are (1) owner/upper management philosophy and (2) clout of the accounting department, which is stronger in this post Sarbanes-Oxley world. Notice that I did not mention company size. From all the discussions I have had with operators so far, Company Size and Location of Production (remote or centralized) does not have a major impact. In fact, in several smaller companies, good communication between the pumpers/field operators and the office management/production accounting personnel are enabling them to navigate the digital world quite well. Deployment depends upon operators using the information highway to learn what technology is available.

Summary of Methods and Techniques
There is a "mix" of methods being used by the operators surveyed. The method tends to be a result of the needs or the philosophies of the operators, the status of mergers and buy-outs (who is the surviving entity) with new systems being tried, and communications between field and office. There was a genuine interest in the operators to learn what others are doing, and this is fueled by the very recent improvement in the technology of digital data gathering. More companies are initiating pilot projects as a result of the improvement in the technology.

gathering devices and accounting software, which in the eyes of a lot of operators is a "must." It is quite apparent that accounting is becoming a bigger player. Also the technology can now provide more regulatory reporting than before. The recent developments also provide better user-friendly data displays and the pumpers/lease operators are less fearful of learning the digital world.

  • Hand-Held Computers: Field Direct-Production Explorer; Merrick-Pro Count
  • Laptops: Used as an alternative to Field Direct and Merrick Hand-held computers (choice of pumper/lease operator), or utilizing individual software components. Data are gathered and either electronically transmitted via a modem or paper faxed. Laptop software used includes: Local- developed Excel spread sheets; TOW; LOWIS; WINTANK; ACCESS database internally-developed; TOTAL ROD
  • SCADA Systems
  • Pencil: Hand-prepared Saddle Blanket and Grease Sheets (Old methods)
  • Combination of ALL!!!

 

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