Ground-Breaking Online Supply Chain Solution for Oil & Gas Companies Greatly Improve Performance, Resources & Time on the Rig

By Vidler Isac

Efficient use of resources such as people, equipment, and chemicals is critical in the oil and gas industry. It significantly impacts a company’s overall performance, saving time and money. Vidler Isac, Planning Manager at Schlumberger (SLB), one of the world’s largest oil and gas companies, developed a ground-breaking online solution that allows LDAP users to review, update, and continuously track rig operations, dramatically improving the order fulfillment process. This article describes the critical components and inefficiencies in the asset and personnel planning processes, and how to address them.

Assigning and Tracking Resources

Location Status

Create a color-coded visualization system for managing and tracking all resources, including people, equipment and materials for each location. Make sure it includes a list of assigned employees and a view of the user’s assigned location and current location status, including onshore, offshore and plant facilities. Include relevant well-services and QHSE certifications and the expected expiration date for all equipment. By providing authorized managers and rig supervisors access to this information, and entitling them to update and modify certifications, they can plan much more effectively and develop forward action plans.

Personnel Assignments

 It’s critical to maintain a list of all employees and or contractors assigned to the current location to ensure qualified personnel is working onsite. Using an LDAP online solution ensures data can be sorted by current certification expiry, including training, driving certifications, and medical check-ups, in addition to other rig-specific certifications such as BOSIET and OGUK. Employee location and the number of days in that location are updated continuously to track fatigue management.

Proper planning of all employees and contractors assigned to a current location is critical for ensuring compliance, safety, and overall efficiency. It can help reduce the likelihood of accidents or other incidents, increase overall productivity, and ensure compliance with regulatory requirements. By proactively managing certifications and training requirements, companies can also reduce the risk of downtime or delays associated with non-compliance or non-conformance. By ensuring the right personnel is assigned to each job and that they are properly trained and certified, companies can maximize productivity, reduce waste, and ultimately drive greater profitability. Investing in this area and leveraging the latest tools and techniques will greatly contribute to a successful business operation.

Control and decrease truck and equipment movement

It’s also very important to plan properly and manage equipment maintenance and inspection certification. Having well-maintained and certified equipment reduces the likelihood of breakdowns and the need to repair or replace during use. This leads to fewer delays and interruptions during equipment movement, resulting in reduced downtime, increased productivity, and considerable time and cost savings. As shown below, by controlling and decreasing truck movement and unnecessary truck trips, SLB saved more than 8,000 hours of driving, resulting in increased efficiency, productivity and $650K in savings, which have a positive impact on the bottom line for the transportation provider or the company itself.

While the exact amount of cost savings depends on the type and frequency of required maintenance and inspections and the overall efficiency of the planning and management process, implementing proper maintenance and inspection practices can significantly reduce the amount of money spent on equipment-related issues and improve the bottom line.

Winning On-Call Jobs

In addition to the benefits described above, proper proactive planning and equipment readiness can significantly improve a company’s ability to win on-call jobs. It allows companies to respond quickly to unexpected challenges or new opportunities in a timely and efficient manner, increasing their chances of success and taking advantage of new opportunities as they arise. By focusing on being proactive, paying attention to detail and commitment to continuous improvement, companies can position themselves for success and achieve their goals more effectively.

Accurate inventory management

Accurate inventory management and order tracking can lead to significant cost savings, by identifying excess inventory, allowing for existing inventory to be used and canceling forecasted orders. With a real-time display of all materials and supplies, including chemical and spare parts inventory by location, incoming and outgoing orders can be adjusted.

Outgoing chemicals include job consumption with the FTL number or a chemical transfer to another location. In the example below, the user chooses the chemical quantity and the respective lot. After the quantity is updated, a waybill with all the selected chemicals can be exported or the user can be directed to the e-journey system for chemical movement planning and tracking purposes. The chemical update is documented in the pending outgoing section. These quantities are exactly matched into the incoming pending column for the final location of these chemicals. The location manager and rig supervisors are automatically notified once a change has been made

Similarly, material requests and spare parts inventory are easily accessed and updated.

The chart below highlights the importance of accurate inventory management and order tracking in reducing waste and maximizing efficiency. It shows saving each month, a total of $314K in one year.

By leveraging the latest inventory management tools and techniques, companies can identify excess inventory, reduce the likelihood of stockouts, and ultimately save money. Having a clear understanding of inventory levels and order status, helps companies improve customer service and increase customer satisfaction companies can provide accurate and timely information to customers, which can enhance their overall experience and strengthen customer relationships.

By implementing these practices, companies create an optimal scenario on the oilfield where the right resources are assigned at the right time and ready for the current and future state. This leads to overall improved performance on the rig and a much more efficient order fulfillment process. Not only does it help improve employee and customer satisfaction, but it helps drive real savings that contribute to the bottom line.