Over recent years, there has been a dramatic rise in the demand for energy-rich resources and products across the globe. For obvious reasons, the oil and gas industry is currently at the forefront of this colossal change as the demand for crude oil is soaring by whopping margins. The companies operating in the energy sector bear the onus to fulfill the meteorically rising market demand. It is, therefore, essential that oil and gas companies adopt a tech-driven approach to streamline their operations and get by the complexities of extracting and processing crude oil.
That said, ERP software development plays an important role in enhancing production efficiency and helps oil companies to boost their production capacities. Here, we shed light on the most crucial ERP features that oil companies must have to extract maximum benefits from ERP software solutions for the oil and gas industry.
The use of ERP software systems in the oil and gas industry is not a new trend. In fact, ERP systems have been in use in the said industry since the early 1960s. Nevertheless, there are many companies in the renewable energy sector that are still using obsolete ERP systems.
As a matter of fact, it is increasingly important to keep your ERP systems up-to-date to keep pace with the latest technological advancements. If a company in the said industry has not conducted a software upgrade in a long run, it might be missing out on several important features. In the following section, we talk about the two most disruptive technologies that must be part of ERP software solutions for the oil and gas industry.
Big data plays a pivotal role in the oil and gas industry, or it’s rather convincing to say that it provides the requisite fuel for the industry to operate. It’s quite evident that the processes involved in the exploration and extraction of oil and natural gas give rise to massive amounts of data. The data volume keeps on increasing almost daily as development and production take place. This is where the role of big data analytics comes into play.
The data captured at different stages of production is further utilized and processed through big data analytics methods. As a result, it helps create models and images of the Earth’s structure and its deepest layers thousands of feet below the ocean surface. Based on this collected information through refinery wells, many important factors are analyzed such as oil flow rates, pressures, etc. to enhance their machinery’s performance. Given all these factors, Big data is becoming a primary need for all these wells to operate effectively. Also, there are millions of active wells around the globe and new ones are being set up more often than ever. That said, the data requirements are only going to rise, thereby opening doors to big data.
There are a number of ways as to how blockchain implementation can benefit the oil and gas industry. As already told, the oil and gas industry generates humongous amounts of data at different stages of planning, production, and development. This also includes data used for conducting product trades which requires feeding the same information to different types of systems after reconciliation. In such a scenario, using a distributed ledger system like blockchain can help feed this data to all parties simultaneously. As such, it reduces the time consumed in the reconciliation of price and volume differences amongst trade participants.
When combined with processing equipment and pipeline sensors, blockchain can alleviate tasks like record keeping, execution of contracts, payments, transactions, and fraud detection. Apart from that, it brings top-notch security, transparency, and immutability to the stored data and adds a trust factor.
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Evidently, blockchain and big data are the two most disruptive technologies that may do wonders for companies in the oil and gas industry. Therefore, making these technologies a part of the ERP software would be an ideal way to sail through the potential operational challenges. As of today, a majority of ERP software solutions for the oil and gas industry already incorporate technologies like IoT, big data, blockchain, and AI. However, for those who are yet to embrace these next-gen technologies, it is an opportune time to modernize their existing enterprise systems to introduce these technologies into their day-to-day operations.
We, at Oodles, provide end-to-end ERP software solutions to solve complex business problems and sail through routine operational complexities. Our development team uses the latest tech stack, agile methodologies, and next-gen technologies to develop feature-rich ERP solutions that are easy to scale. We use open-source software platforms like Odoo, OFBiz, ERPNext, and Opentaps to build custom enterprise solutions from the ground up. Our custom ERP development services are conducive to automating complex repetitive tasks and achieving higher levels of business efficiency. Reach out at [email protected] to learn more about our custom ERP software solutions for the oil and gas industry.