First off, what is defined as Production Allocation? For an upstream oil and gas operator, Production Allocation is an ongoing accounting process that is a subset of hydrocarbon accounting. It’s conducted by highly skilled Production Accountants who are tasked with consolidating accurate well-flow and volume measurements, determining optimal distribution of resources and then calculating production reports.
Tracking daily production allocation gives you early insight into month-end allocations. Production Accountants are tasked with shoring up actual vs planned reports on oil production and operational costs. Understanding, and more importantly, forecasting well performance, gives production accountants opportunities to troubleshoot issues before they impact monthly figures.
It’s critical that oil and gas upstream operators capture near-real-time data coming in from field service teams and then integrate that with backend SCADA and ERP applications. The cost of relying on inaccurate or delayed data can undercut production levels, increase overhead costs and impact bottom-line revenue. Accurate, timely, and relevant data used for production accounting gives operators visibility into overall performance. Research estimates that nearly 225 million* barrels of oil are lost each year due to unplanned downtime and lack of optimization. One of the largest supermajors has already invested in cloud-based, SaaS solutions and reported time and cost savings year over year.
Many Production Accountants must work with backend legacy systems while waiting on incoming well test results, fluid levels and task updates from field service teams. Manual calculations are made that leave potential room for error. Not only is this not sustainable, it does not allow operations to be scaled up or down. Confidential data integral to the entire oilfield operation could be sitting on a local hard drive or someone’s desk, further increasing the chances of a security breach.
Seven Lakes Technologies built JOYN Production Allocation with the vision of optimizing field service operations and managing unplanned downtime. It harnesses the latest AI technology on a secure platform that is based on real-life requirements from upstream operators like you. To learn more about JOYN Production Allocation visit our solutions webpage or check out our YouTube video for feature demonstrations.
Here is the JOYN Production Allocation demo video.