Shaun Six, RedEye’s Energy Industry Lead in North America, offers his insights on the Oil & Gas market adoption of Cloud-Based EIM. For over a decade, Shaun has been working to bring innovation to the industry, having worked with companies such as Devon, TECO, BHP, Hess, and Accenture, in roles that included project management, digital strategy development, dashboard analytics, IoT consulting, and project-portfolio management.
In August, California’s major utility company, Pacific Gas and Electric, was found guilty of safety violations at the time of a 2010 gas pipeline explosion that killed eight people and destroyed a neighborhood in a San Francisco suburb.
“In a fresh reminder of the missteps that led to the San Bruno explosion, state regulators on Thursday slapped PG&E with a $25.6 million fine for an array of record-keeping violations.” (The Mercury News).
The high consequences of ineffective information management are confronting. Safety in the oil and gas space is paramount and can be drastically improved with optimal information control, visibility, and accessibility.
As technology progresses, it’s imperative your operating practices optimize and transform alongside it. According to Gartner, this year Oil and Gas companies have pursued digital innovation at an accelerated pace.
Gartner’s 2019 Hype Cycle provides thorough assessments for capabilities and technologies with the highest potential to improve oil and gas business performance. The Hype Cycle has changed significantly since last year, reflecting the Oil and Gas industry’s “rapid progress on digitalization objectives.”
For Gartner, cloud-based Engineering Information Management (EIM) Systems have a high business benefit and will reach mainstream adoption in less than 2 years (see Figure 1 below.). To remain competitive, or to embrace this opportunity to establish yourself as an industry leader, companies will be adopting this technology.
Let’s look at why so many organizations are switching to the cloud and the major business outcomes.
Cloud-Based EIM Business Impacts at a Glance:
- Capital and operation cost savings
- Improved accessibility and trustworthiness of shared engineering information
- Improve project efficiency
- Reduce delays and repeat work
- mitigate scope change
- optimize materials and inventory management
- Reduce information duplication
- Facilitate complete and efficient handovers
Cloud solutions are significantly more scalable than on-premise EIM systems. In Oil & Gas, it’s not uncommon to rely heavily on a network of part-time, contract labor or vendors when capital expenditures are increasing. Your workforce can ramp up and down dramatically over a few months. Having a cloud-based solution enables size, consumption, and processing to scale with relative ease, a huge advantage over on-premise solutions.
RedEye is differentiated in this space. Not only are we the first purpose-built solution for the operations and maintenance phase, but we’re also the only system that has no-licensing barriers in place to slow adoption and impede scale. While most systems have users and usage constraints built into the licensing agreement, RedEye’s unlimited users and usage model is a true outlier.
Historically, cloud-security and regulatory protocols were cited as reasons for not moving to cloud solutions. Now, cloud-compliance capabilities have caught up, and in many ways, surpassed data-security and regulatory requirements.
For example, at RedEye, our system invites users into the data, rather than sending data out in an unregulated manner. Cloud-systems allow for real-time collaboration, and an easily visible, accessible, and auditable history. This ensures the improved accessibility and trustworthiness of shared engineering information
Because of the nature of large infrastructure projects, many stakeholders are involved in the process, both internal and external to the primary owner/operator. Cloud-based EIM has many advantages to this area, primarily the ease of collaboration and “handover” for commissioning/operations.
For Simon Cushing at Gartner, “Handover of a complete and accurate set of as-built documentation to operations when the facility is commissioned has historically been a challenge for oil and gas operators and their EPC contractors. Cloud-based EIM offers advantages for information sharing and handover”.
Unlimited user/usage models further improve this process, which is a differentiator for RedEye in this space. Cloud EIMs can augment and automate the traditional document control process through automated workflows. To get the most out of your cloud-based EIM, opt for a vendor with an unlimited workflow offering.
Cloud-based solutions are becoming more commonplace in O&G and have matured quickly. Gartner’s Hype Cycle advises anyone with capital heavy projects could benefit from this and encourages operators to find the right-fit solution that is “easily configurable to support all types and scales of engineering projects within the organization.”
I would go a step further and say that companies should look to a solution that is built with the operator in mind, or, even built with the end-user themselves. They, at the end of the day, are the ones who will run and maintain this infrastructure for a much longer duration than the project. These facilities may live through many “brownfield” projects and see multiple expansion and redesign initiatives throughout their life cycle. Throughout these projects, they’re operated and maintained daily by a team that needs to use the same documentation to efficiently and safely execute their routine work and objectives. Projects are a small piece of an asset’s lifecycle. At RedEye, we design and build our tech with the end-user, and partner for the long term.
RedEye is the first purpose-built cloud solution for managing as-built data for organizations that own and operate critical infrastructure. Together with our clients, we manage over $250 billion of the world’s assets. We’re reinventing the way people work by making the world’s as-built data more available, usable, and valuable. Learn more about our Drawing and Data Management and Workforce Mobility solutions.