The Value of a Data Intelligence Cloud for Oil & Gas Part 2: Cost, Workforce and Risk Management

For those in the oil & gas industry interested in how to effectively leverage new advancements in AI, in addition to understanding the nuances of oil & gas production optimization as discussed last week, it would be in your best interest to also understand the nuances of oil & gas cost, workforce and risk management challenges and new legacy modernization solutions will take help those organizations looking to stay competitive.

It would be a gross understatement to say that the detection, evaluation, and control of different risks in the oil& gas industry is a huge concern of not only the executives of their respective energy companies, but every citizen in the domain of those assets. It would also be no less a priority to understand the workforce and cost/budget implications of ensuring that risk is minimized to the optimal levels.

AI Transformation Challenges for Oil & Gas Cost, Workforce and Risk Management

Oil & gas cost, workforce and risk management put simply is the process of identifying and mitigating potential hazards, ensuring worker safety, and implementing strategies to reduce financial losses and operational downtime.

Specific challenges by upstream cost, workforce and risk management practices include:

• Upstream Budget/Cost Management: Field Development Managers have to deal with End User Computing limitations of Excel based systems to estimated development costs and unworkable operational cost and planning system leads to drastic miss calculations of developing a field.
• Workforce Management: HR and C-level executives struggle with competitive labor markets and massive retirement upcoming retirement waves pose a tremendous challenge to Oil & Gas companies in terms of staffing their operations.
• Market & Trading Risk Management: Risk Management Executives understand that as energy markets continue to experience high levels of volatility, the ability to measure and manage risk has become a priority for industry players. These changes can result in financial losses, credit downgrades, regulatory disallowances and the erosion of stakeholder value. Increasingly there is a recognition that the availability of accurate and timely information on market and credit risks can provide that key competitive advantage in an industry ruled by uncertainty.
  

The Value of a Data Intelligence Cloud for Oil & Gas Cost, Workforce and Risk Management

Business leaders are tired of waiting for critical information to make real-time decisions that not only impact profitability, but potentially could have catastrophic environmental impact. Achieving business-led AI transformation with a Data Intelligence Cloud is the first step to realizing oil & gas AI transformation. By modernizing legacy systems, what was once a platform for pure application processing power and storage can now leverage new GenAI technologies to extend functionality into the realm of contextualized data ingestion, advanced omni-channel analytics and proactive/predictive engines to forecast future states based on variables correlated from both within as well as outside the enterprise.

Specific benefits for oil & gas cost, workforce and risk management include:

• Upstream Budget/Cost Management: Delver a multi-stage consumption-based model that allows you to focus on what drives the volume and intensity of the business processes and how those activities consume resources and identify how much it costs to perform a process/activity while addressing the interaction between activities and allow for “what if” analysis based on business events in order to achieve operational balance before financial targets.
• Workforce Management: Provide an HR-specific data model designed for analysis and growth for world-class predictive analytics to plan for future needs. Also deliver on the promise of data integration capabilities that bridge the gap between legacy, transactional and ERP systems with prepackaged metrics for measuring and analyzing key indicators all in a single platform for creating enterprise intelligence and support enterprise performance improvement.
• Market & Trading Risk Management: Deliver multi-commodity support, including electricity, natural gas, NGL’s, crude oil, coal and associated derivative products with comprehensive deal capture within a database environment and physical spot and forward contracts, transportation, storage, futures, fixed/float and basis swaps, vanilla and exotic options as well as mark-to-market, value-at-risk, earnings-at-risk, and credit-value-at-risk. Additional value includes collateral management, automatic market data updates via live feeds, detail and summary reports such as transaction activity, mark-to-market, financial exposure, physical volumetric exposure, FX exposure, settlement reconciliation, and counter-party credit risk along with FAS 133 reporting and documentation and multi-currency support.

Why Wait Months Or Years When You Can Achieve Measurable Results in Days?

Emerging open source, no-code intelligent cloud solutions like UBIX can deliver on the promise of a data intelligence cloud for oil & gas cost, workforce and risk management to supercharge the quality of reporting and advanced analytics while accommodating enterprise-grade security and regulatory compliance. It starts with a comprehensive access to all available data. By consuming all on-premise infrastructure, cloud-based infrastructure and cloud application datasets directly, UBIX makes the integration seamless and ensures that your existing data assets are fully utilized by LOB with a simple natural language query. The good news is that you can realize results in days, not months or even years. This is what also frees data scientists and data analysts to address innovations instead of generating more superfluous reports.

Realizing the promise of a data intelligence cloud for oil & gas cost, workforce and risk management starts with an understanding of the realities (as opposed to the hype) of emerging GenAI + Reinforcement Learning with a no code solution that delivers on the promise of bridging the communication gap between the average business executive and the average technical/IT resource. Download our free eBook titled “5 Steps To AI Business Transformation Success” to help better understand the details of emerging AI concepts and how to ensure digital transformation and business-led AI success. Or if you can spare 22 minutes for a mini–2025 Data Intelligence Cloud Workshop, you can contact one of our experts today.