1. Cole Whitney, (972) 345 -7537
Impact of Mobile Technologies
on Oil & Gas Industry
– A BI Approach

2. 1. “The average cost for terrestrial well
completion is $1.5 - $3 million, more
for multi-stage frac and off-shore”
2. “Daily lease costs for off-shore rigs
(jack-ups) can be more than
$250,000.”
3. “War on operations talent in 2006,
made acute in 2013 as work force
retires.”
4. “Demand for oil & gas continues to
rise as BRICS industrialize.”
5. “Oil & gas increasingly difficult to
permit, extract and distribute leading
to new innovations, e.g., pure pipe,
better well master data and faster
compliance. ”
The oil and gas industry faces five (5) challenges which will drive the need to
do more with less in a safer fashion:

3. Where Mobility Can Mitigate
These Problems
Faster DSP and AFE approvals with
mobile Corp. Dev. Rep. (CDR) – first
mover adv.
New connection contracts (K) recorded
accurately and tracked in the pipe to
set utility and industrial customer
expectations or hedge effectively.
Mobile embedded business process aids
junior people to “Go Like a Pro.”
Forecast well construction profits by
integrating AFE with field tickets.
Forecast condensate or NGL revenue
with accurate PIG status in the field.
Reduce accidents from less experienced
workforce and lower insurance
premiums via accurate inspections.
Track and inspect assets to avoid
ordering new plant, pipe, equipment
(PPE), permit violation fees and
additional labor costs.
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4. Oil and gas acquisition accelerated with mobile Decision Support Packages
(DSP) while keeping CDRs in the field to win producers and work with
engineers to adjust AFE for right of way variances and expected cost of
completion.
Prospecting
P = .5
Gate 1
DSP
Gate 2
DSP
P = .8-.9 AFE $20M
Gate 3
DSP
K $50M
1st
Invoice
Producing Customer
Well
Asset
CDR
Location services identify well proximity to
assets for CDRs to prospect new producers,
maximize chances to add new connections to
offset decline rate and route suppliers into the
rig site more efficiently.
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5. Business decisions can be faster if mobile is used to integrate data
sources with field behaviors.
• Cost of Drilling/Re-working – cost analysis on the option of
performing maintenance on the rig vs. drilling a new well or
replacing the rig. Typically it shows the benefits of re-working a
rig by showing the improvements in extraction barrel volumes
after the re-working has been performed.
• Forecast well construction profits by integrating AFE with field
tickets.
• Condensates Tracking – the amount of how much gas is
attributable due to condensates. Condensates is when water or
other liquid is accumulated when extracting gas, which decreases
the amount of gas that is extracted cleanly.
• Forecast condensate or NGL revenue with accurate PIG status in
the field.
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6. Field behaviors can be safer and less costly by mobile management of
assets and people.
• Production time – almost the same as cost of drilling except it measures
the amount of time spent extracting a certain number of barrels. It
shows in different frequencies that rig extracted X before re-working and
then Y afterwards. This is used to identify which rigs are ready for re-
work and also how much crude will be available for production and
subsequent processing for end products to be sold.
• Reduce accidents from less experienced workforce and lower insurance
premiums via accurate inspections.
• Cost of Transportation – analysis on the costs directly attributable to
getting the crude from the extraction point to the gate of the refining
plant. Which is the most profitable means of delivering the crude to the
plant.
• Track and inspect assets and people to avoid ordering new plant, pipe,
equipment (PPE), permit violation fees and additional labor costs.
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7. KPIs used by leadership to manage the business must be on a Mobile
Business Intelligence Scorecard to make changes quickly!
 Volumes in base, Barrels of oil equivalent, and Millions of Cubic
Feet (MCF) equivalent
 “Can we meet customer demands over different seasons?”
 “Will we make a profit at different levels of demand and
weather patterns or should we hedge based on forecasted price
per barrel of oil equivalent?”
 Royalty only volumes (base and equivalents)
 “What are upcoming royalty payments to investors for using
their land or assets?” “How can we increase drilling rights?”
 Average daily price (base and equivalents)
 “How can we align staff with leadership goals?”
 Discretionary cash flow and ROI
 “How much cash flow from new well connections and existing
field operations is consumed by field decline rate in order to
justify additional capital investment?”
 Cash operating costs
 How much cash is consumed by operating the business?

8. KPIs used by leadership to manage the business must be on a Mobile
Business Intelligence Scorecard to make changes quickly!
 Simultaneous comparison of actual to multiple forecast scenarios
 What is our hedge trade? What is the pipe mix by K volume,
price type (fixed, index, spot)?
 How much condensate has diminished clean transport value?
 What is the yield of end products from crude and gas obtained
from the well, producer, field?
 Dry Hole Costs
 What are our sunken costs? This is ROI of overall Exploration
and Development, and productivity of the same. Year-to-year
comparisons of the accuracy of the Geological engineers in
predicting the location(s) of new reserves and will provide a
trend analysis that will play a key role in the Budgeting and
Planning process.

9. Upstream Company Case Study
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13. 13

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15. World’s Largest Offshore Driller Case Study
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17. 17

18. 18

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