INFORMATION TECHNOLOGY- LEVERAGE TO ADD VALUE

Abstract

Master the process of implementing innovative IT and make gains. Choose the wrong IT and suffer. These opposing outcomes are driving cooperation amongst E&P competitors. Pooling resources is an effective strategy to mitigate risk-be it the risk of the Year 2000 Bug or the risk of implementing frontier IT solutions. Narrowly focussed, joint-industry IT initiatives pose realistic hope for practical IT innovations amongst companies that believe IT frontiers fall outside their core competence. Defacto standards will plausibly result and lead to lower costs and reduced complexity. Just such standards pose the opportunity of savings in the range of US$1 to US$3 per barrel produced. Given the IT component of costs is now roughly US$0.25 for each barrel produced, the incentive is clear.

Expect change for the better. Encouraging trends include de-facto standards in relational databases (ORACLE), the development of fast processor-indepen- dent program codes (JAVA), powerful search engines and fast internet-type communications.

E&P IT will continue to change the way we work. Management will continue to be challenged-to chose fit-for-purpose IT; do so just-in-time; and to maintain access to motivated, well-trained professionals to effectively use those new tools. Shared (cross-functional) databases, easily accessible applications and interconnected workstations are the catalysts for multi-locational, multidisciplinary teams that will improve corporate performance. Implementation of capacity planning metrics can minimise the pain of slow connectivity and system upsets. Organisations that learn how to apply the right IT at the right time will be competitive.