Mitigating the Biggest Risks in the Oil and Gas Industry
Reducing Major Risks in the Oil and Gas Industry
Risk exists in any major industry and often this can feel outside the realm of what we can control. The oil and gas industry is dynamic and understanding major risks to profitability and safety is important for companies of any size. The biggest risks facing the oil and gas industry include cost overrun, environmental liability, political risk, regulatory risk, and operational risk. While these risks can feel outside of your control, maintaining a direct line of sight to your operations will allow you the power to effectively assess, determine impact, and find solutions. Ultimately, effective tools that increase insight allow you to mitigate risk and create a culture of safety and compliance in your operations.
Matidor is purpose-built for the oil and gas industry to increase clarity into budgets, project progress, and field operations. An understanding of real-time budgets allows you to anticipate or prepare for fluctuations or cost overruns. Assessment and completion of well abandonments are easily managed remotely through Matidor to reduce the environmental liability of existing wells. Matidor’s ability to display GIS-integrated mapping of projects around the globe spans geopolitical borders and allows you to track global projects on one platform. When collaboration, data management, and real-time budgets are streamlined a business has a solid foundation to mitigate risk and improve the bottom line.
Cost Overrun
Unexpected costs are a risk that can be expected but never fully predicted. It’s common for fluctuations in wages or materials to be built into the lifecycle of projects, and current labor availability in North America is making these fluctuations more common. Beyond immediate risks within your project, oil and gas companies need to also be aware of commodity fluctuations in the market price of oil and gas resources. As commodity prices fluctuate, companies need to be prepared to scale operations up or down. Having a clear understanding of costs combined with market predictions makes for a well-planned project that maximizes profit while mitigating unforeseen costs.
Matidor allows for granular reconciliation of budgets for field projects and oil and gas services so that they can be monitored remotely. These budgets can be managed manually or through an integration with accounting software, which negates the need to reenter valuable budget information and enables a real-time look at budgets. When project scope and budgets can be controlled, cost overrun risks are minimized.
Environmental Liability
Environmental liabilities expose you to risk and involve unnecessary environmental harm and financial damages. Understanding existing liabilities and potential future threats are important for companies and government regulators to forecast. Spill, emissions management, pollution prevention, and habitat preservation are of top interest for oil and gas companies at any size. Regulators and environmental groups have a keen eye on environmental liabilities and compliance is of utmost importance.
Matidor understands the need to efficiently manage ongoing compliance tasks such as reporting and field data collection, as well as new reclamation or remediation projects or environment responses. Managing ongoing projects and investing in new projects can be streamlined through the communication and collaboration features available on our platform. The availability of accurate GIS mapping during an emergency is paramount to understanding the site of a spill and with Matidor, your site maps provide geospatial context to emergency response. You’ll be able to immediately measure the impact of environmental risks by viewing each site within its geographic context.
Political
Politics control the regulations that affect the oil and gas industry and deeply influence the need for a culture of compliance. Sudden changes in the political landscape can lead to market instability and can change a company’s profitability in a region. Geological deposits do not favor certain regulatory environments and choosing countries to operate in must involve a calculation of political risk and the platform of the party in power. Maintaining a clear picture of each project across different political jurisdictions is essential for understanding the rules and regulations held therein. Political risks can feel completely out of a company’s control and by leveraging the information we do have, we can be better prepared for the unexpected. By maintaining a strong understanding of your projects and the ability to direct and control them efficiently from the office and field, you are better able to respond to changing rules and regulations.
Operational
Operational risks encompass everything we have discussed and are largely the broadest risk that oil and gas companies face. Operational risks are a combination of regulation, the complexity of the fields you are operating, labor, and market prices. They can include past and current assets and their impact on the environment. Operational risks require operational solutions in the form of safety and compliance. Using new technologies to gain insight into operational impact allows companies to gain power over what factors they can control. Risk mitigation is an ongoing process of assessment, impact, and solutions that must be built into the organizational framework. Tools, like Matidor, that enable companies to create a culture of safety and compliance that is efficient at measuring impact and responding to data will allow companies to operate safely and profitably across the globe.
Mitigate Your Risk with Matidor
Matidor allows you the oversight to make important decisions in a dynamic industry. Regulation, labor availability, politics, and operational risks can feel out of your control but understanding the risks are in your control. Maintaining a direct line of sight into your project’s real-time budgets and being able to respond quickly to risks will give you a competitive edge. Matidor allows you to track operations, field data, and budgets from anywhere in the world. Through key insights into project performance from reports on progress, safety, and compliance, you’ll create a system for mitigating risk through information. Matidor’s centralized communication through tasks and smart tagging combined with custom forms means we support your company’s culture of safety and compliance which shields you from unnecessary risk. Gaining control over your projects is simple with no training required to implement and begin working with Matidor. Let us show you how to mitigate the biggest risks facing the oil and gas industry through our platform by booking a free demo with our team. Matidor is purpose-built as a platform to reconcile important information and allow companies’ decision-making power to assess risk, evaluate impact, and implement solutions.