Drilling plans and the related costs can change at the drop of a hat. An extra day of unexpected downtime or additional equipment rentals in oil and gas can push an operator’s real spending far beyond the original Authorization for Expenditure (AFE). On one hand, it’s impossible to foresee every unexpected turn in the oil and gas business, and some costs will always fluctuate, no matter how carefully we plan around them.
On the other hand, the real issue isn’t the rising costs themselves; it’s the fact that management might not notice the variance until days after it happens. This lag between real-time conditions and reporting schedules makes it harder for leadership to respond before expenses spiral, and it’s too late to stop them. Fortunately, modern technology has provided a simple solution.
Wellsite operations software gives field and operations teams a current view of actual conditions at each rig. Instead of manually compiling and reconciling information from paper tickets and disconnected spreadsheets, teams have access to near-real-time wellsite data in a centralized data ecosystem. As a result, operators become more proactive and less reactive, with faster access to drilling cost reports and better AFE tracking.
Industry analysts agree that oil and gas producers need up-to-date, standardized drilling data. For instance, the International Association of Drilling Contractors (IADC) recently developed the DDR Plus standard to help operators secure precise, timely drilling data to assess progress on KPIs. For drillers and rig managers, these new standards provide a more complete view of current costs without sacrificing operational efficiency.
With legacy reporting models, this process is hampered by several waiting periods that bog down response times. Field personnel complete their daily or weekly reports on a paper ticket, send it to the office, and wait for back-office staff to enter the information into their systems. Then, someone needs to reconcile and standardize the data before it shows up in a cost report, at which point an unexpected expense may already be irreversible.
Real-time drilling cost reports provide a number of significant improvements to this process. With a centralized company-wide database, decision-makers can view costs by well or event alongside historical data. This method of AFE tracking enables companies to compare real expenses vs. projected costs to identify unusual spending and investigate the reasons now, not weeks later.
The oil and gas industry is too dynamic to eliminate cost variances entirely. But the right tools can make variances visible before it’s too late to address them.
Daily drilling reports and tour sheets capture current rig activity conditions, along with information about crews and equipment. But what happens after the completion of each tour sheet?
With manual processes, field personnel need to re-enter the information into a spreadsheet or reporting app, which introduces plenty of opportunities for transcription errors and inconsistent formatting. In addition, a talented staff member has to spend their valuable time performing manual data entry instead of adding operational value.
With electronic tour sheets, data moves directly from the field reporting process into the wellsite reporting system, allowing teams to reduce unnecessary duplicate work. On a managerial level, this process adds efficiency and consistency, giving decision-makers the insights they need to make the right call at the right time.
Even when the field and back office share access to the same data, they aren’t always working from the same version. With legacy rig data management methods, information moves through disconnected email chains and siloed spreadsheets, and each handoff creates a new opening for errors and delays to enter the process.
Centralized rig data management closes these gaps, giving field and office personnel access to the same source of verified information. Instead of calling a supervisor to request a spreadsheet or digging through email chains for reports, everyone can retrieve current wellsite data directly.
The oil and gas industry has been slowly moving toward integrated data management for years, and industry groups like the Society of Petroleum Engineers (SPE) have long pushed for better data science practices among operators. Today, tools like PakEnergy’s Petrosight provide cloud-based access to a secure data warehouse, with direct imports and standardized reporting to help companies reach this information threshold.
Petrosight offers secure access from any mobile device and supports unlimited users for companies with large portfolios. This helps bridge data gaps by providing easy accessibility and offline compatibility, with configurable reports so management always has the info they need to make smart and timely decisions.
Wellsite operations include a wide range of in-house staff and external partners, with drilling contractors, engineers, field supervisors, and other stakeholders all requiring some form of data access. Sharing spreadsheets or email chains with every interested party quickly becomes a difficult process to manage, with multiple versions circulating and inconsistent access.
Cloud-based reporting allows operators to offer different users different permissions, so everyone has access to the data they need, but sensitive information is reserved for those with the authority to view it. With Petrosight from PakEnergy, partners have remote access to centralized wellsite data. Plus, with unlimited user profiles available, you can give everyone individualized permissions, no matter how broad your asset portfolio.
Centralized data breaks down these silos and supports convenient completions reporting, removing the requirement to manually reconcile disparate data sources every time you want to run an analysis. This is where digital reporting provides value well beyond simply replacing manual tickets. It provides a foundation of reliable, verified data, enabling everyone to make faster, more informed decisions.
If you don’t have live visibility to every asset in your oil and gas portfolio, modern wellsite operations software like PakEnergy's Petrosight can give you the access you and your team need. Get in touch with one of our PakEnergy experts today and find out how modern drilling and completions modules can revolutionize your operations.
Can field supervisors access reports offline?
Many oil and gas wellsites are in remote locations, so field connectivity varies considerably from well to well. Cloud-based systems like Petrosight can temporarily store field data on mobile devices and automatically sync with the system when connectivity is restored, helping cut down on data delays between the field and office.
How does Petrosight handle AFE imports?
Petrosight users can import planned cost data into the same end-to-end environment that hosts wellsite reporting and cost tracking functions. Managerial staff can more easily compare anticipated costs with current expenses, as opposed to maintaining AFE tracking and field reporting in siloed systems.
Are there seat limits for partner access?
PakEnergy’s Petrosight supports unlimited user profiles, all with individualized permissions so everyone has access to the data they need, and no one has access to data they shouldn’t see. This gives operators the ability to provide access to field personnel, office staff, and external partners without having to divvy up a limited number of software seats.