Upstream Success Story: Boosting Operational and Back Office Efficiency With Workflow Automation

By Erik Schneider

P2's Workflow solution for E&P companies has improved efficiency by more than 50 percent for material transfers at a leading mid-cap U.S. producer.

This customer, which prides itself on having one of the lowest cost structures in the U.S. upstream sector, was managing material transfers with a mix of out-of-date technologies and manual procedures. That made the process of executing and recording transfer requests – an essential and often time-consuming area of oil and gas accounting – slow, inefficient, and error-prone.

From pipes and chemicals to spare parts in storage, every type of production material used in the management of an oil and gas lease needs to be carefully tracked, often requiring specific sets of information. Record keeping needs can vary from well to well, from lease to lease, and from company to company.

Prior to adopting P2 Workflow, material transfers were being managed on a 20-year-old spreadsheet, with requests from the field being input manually. The warehouse would then fulfil or deny the requests based on availability. When approved, the request would be forwarded manually to a back-office accountant who would re-enter the transfer into another system.

The spreadsheet itself was potentially unstable and hard to navigate. The customer needed a reliable solution that would shorten the turnaround time for requests and improve the speed and accuracy of its materials record keeping.

Ideally, this would mean having one system that could take a transfer request entered remotely from the field and automatically route it to the warehouse for approval. Accounting would receive a prompt to add material-specific data like period end dates. From there, all the data would auto-post to the company finance system.

After a review of the available solutions and vendors against these requirements, the company selected P2 Workflow to help them on all these fronts.

The Results

Implementation was expected to roll out over 16 months – which P2 was able to shorten to just over 3 months. In addition to training and consultation, P2 helped design standard input forms and tailor the system's workflow to the company's specific needs, across 15 different types of production material.

• Since taking P2 Workflow live in July, the customer has seen a reduction in process time for material transfers of over 50 percent, enabling faster execution of transfer requests and freeing up back office and warehouse teams to focus on core responsibilities.

• The system's automation features have all but eliminated discrepancies and removed the need for month-end reconciliation between the warehouse and the finance system.

• By leaving spreadsheets behind, this producer can take advantage of P2 Workflow's graphic interface to visualize the status of each transfer and generate reports in real-time. They also gain a clear, searchable audit trail of each transaction.

Feedback from the end users has been excellent, and we anticipate more positive feedback as user adoption continues to grow.

Erik Schneider is Senior Vice President, Product Management, for P2 Energy Solutions

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


AccountingHydrocarbon Accountingback officeAutomationoperational efficiency

More items from p2tim

From Maps to Megabytes: P2’s Tobin Celebrates 90 Years

P2 Energy Solutions  is proud to announce that Tobin, its oil and gas information division, is celebrating its 90th year of operation. For the better part of a century,  Tobin  has set the industry standard for spatial accuracy of oil and gas information. Founded in 1928 in San Antonio Texas, by ...

P2 News - P2 Energy Solutions

Posted 2 years agoPress > OilE&P SoftwareBig Data +3

P2 Appoints Senior Energy Industry IT Leader Dale McMullin as Chief Technology Officer

P2 Energy Solutions is pleased to announce the appointment of  Dale McMullin  as Chief Technology Officer. McMullin brings a wealth of experience to P2, including deep knowledge around upstream oil and gas software. With over 25 years in the technology industry and 20 of them spent focused on th ...

P2 News - P2 Energy Solutions

Posted 2 years agoPress > EnergyOilsoftware +1

Ten Automated Workflows Oil & Gas Companies Need in the Back Office

Automated workflows don't just save time, they also ensure that your processes are followed correctly from start to finish. Upstream oil and gas operators are involved in hundreds of workflows. Automating these workflows can streamline business activity -- which is critical as the industry con ...

P2 News - P2 Energy Solutions

Posted 2 years agoPress > workflowHydrocarbon AccountingAutomation

The Top Six Benefits of Automating Workflow in Upstream Back Offices

Due to the current price of oil, upstream operators are looking for new ways to accomplish more with less – and automated workflows are an effective means to do it. Automation helps oil and gas back office teams minimize errors and save time on important tasks in six important ways: 1: Documenta ...

P2 News - P2 Energy Solutions

Posted 2 years agoPress > Oilgasupstream +4
All posts from p2tim