The daunting task of keeping track of your expenses can be time-consuming and overwhelming if not managed correctly and efficiently. With the increase of mobile apps and other productivity tools, managing expenses has gotten easier.
For oil and gas, managing lease operating expenses (LOE) has gotten easier with automation and software solutions. Now, there are fewer reasons not to have the costs eat away at your companies’ ability to operate wells and keep costs within budget without having to shut-in operations.
What consumes Leasing Operating Expenses?
The first thing consuming your LOEs would be your lack of visibility of assets and processes. Not knowing what your field assets or operational processes are doing or how they’re performing at any given time, could be losing you money without knowing it.
Maintenance is a core component of lease operating expenses. Asset managers are often challenged to minimize financial maintenance and hardware repair of assets. Inefficient use of personnel can be another factor that can drives expenses especially labor-intensive manual surveillance processes. The cost associated with employees who regularly monitor and maintain wells include wages, vehicle, expenses, gasoline costs, and any other expenses required while tending do wells.
Chemical management practices can also consume your costs. A lack of insight into your chemical injection processes can lead to over-injection and unnecessary costs. It could result in under-injection, leading to lower production and increased remediation cost.
For asset managers to gain control of expenses they require key insights to expenses ensure that resources are leveraged in the right places.
How Emerson Zedi Solutions helps to Reduce your LOEs
Oilfield digitalization can provide several opportunities to demonstrate value in fixed assets and minimize lease operating expenses. With the ability to monitor devices and equipment as well as diagnose issues that may affect performance, you can lessen the business impact of equipment maintenance and keep your costs under control.
Working with our solutions, Asset Managers can get proven inside surveillance and field based automation, so they don’t have to visit all wells all the time. Freeing up personnel to manage wells with less labor costs. Efficient use of personnel helps producers stay within budget and have operations continue smoothly without the add high cost of manual labor.
Emerson’s Zedi cloud SCADA Solutions can allow you to monitor the health and performance of your fixed assets with AI-supported analytics to move from reactive or scheduled maintenance practices to more prescriptive measures to reduce labor costs and minimize downtime. These solutions can also optimize functions such as chemical injection and gas volume monitoring to prevent overcharges and keep operations within budget parameters.
With our diagnostics, monitoring and consulting services your asset managers can better manage factors related to Lease operating expenses and have the necessary tools to help you control your operating budgets.