Diversifying business interests beyond the barrel is much more than a strategic move toward alternative growth options and less exposure to market volatility. It’s an urgent calling for an industry reinvention that closes the gap between profitability and meaningful actions that contribute to a more hospitable world for generations.
As the pressure for environmental, social, and governance (ESG) accountability continues to build among customers and stakeholders, oil and gas providers have little choice but to address their complicated relationship with sustainability. The sector currently accounts for approximately 9% of all human-made greenhouse gas emissions, according to McKinsey & Company. Plus, customer consumption of refined fuels comprises another 33% of global emissions.
The struggle over emissions reduction is unquestionably the proverbial elephant in the (board)room. Yet, at the same time, executives are also concerned about intensifying demand among regulators, activists, investors, and banking institutions for measurable proof and documentation of their progress. In fact, 37% of industry players, surveyed by IDC, are already planning to address increasing ESG standards by implementing capabilities to centrally store carbon data within the next two years.
Navigating a Pivotal Transition with Clarity and Trust
Transitioning to cleaner forms of fuel is a worthy investment into the future of humankind. But it’s also challenging how executives manage their information.
The process changes, business model adjustments, and diversification opportunities needed to abate emissions depend on critical factors, ranging from geography, regulations, and carbon pricing to the availability of renewable technology and reliable infrastructure. And in most cases, this information is buried in a massive variety of operational, administrative, and contractual documentation, including land-lease agreements, invoices, maintenance records, land files, well files, pipeline records, offshore assets, and inspection records.
Traditional approaches to sorting, classifying, and analyzing stacks of paperwork are too impractical for any business that thrives on efficiency, speed, and cash-flow optimization. Whether managed through a manual process or legacy technology, data and content volumes inevitably reach a point where information is siloed, easy to lose, and challenging to access. Moreover, considering how widely dispersed the workforce is currently, this form of document management only inhibits cross-channel intelligence, limits productivity, and increases costs.
It seems that most oil and gas companies are getting the message loud and clear: more than 65% are increasing their investment in enterprise software solutions and cloud migrations, as indicated by IDC research. In return, document workflows are digitalized and document processing is automated – all hallmarks of intelligent enterprise content management (ECM).
Integrated, cloud-based SAP enterprise content management solutions by OpenText are well-designed for the continuous change of content volume that companies experience. They can help streamline workflows by unifying business processes and integrating suppliers into daily workflows. Furthermore, with the inclusion of artificial intelligence (AI) and machine learning, organizations can capture, organize, and analyze data at a moment’s notice to make asset-related predictions and recommendations and remain compliant with ESG requirements.
For example, individual departments, business functions, locations, and facilities can collaborate more closely by fluidly exchanging guidance and analytics-based insights more efficiently. Managers can also streamline processes to produce new, easier-to-consume content with greater visibility into user access patterns. But most important is the ability to trust the intelligence, make decisions confidently, and communicate progress effectively, since all enterprise information is derived directly from an up-to-date repository of documentation.
Spreading Growing Intelligence Enterprise-Wide
The future may seem uncertain, but one thing is unambiguous: the oil and gas industry has a vital role to play in our world for many, many years to come. But now it’s time to take the next step in the transformation journey by digitalizing one of the most critical areas of the back office, ECM.
And why not? Most companies are already underway by adopting new ways to automate their operations in the field and plant. And by extending that mindset to become fully aware of the benefits of SAP ECM solutions by OpenText, the balance between profitability, public trust, and positive ESG outcomes can become easier to achieve.
Ready to learn how SAP ECM solutions by OpenText can help turn your oil and gas business into a provider that leads the industry toward a more sustainable future for everyone? Read the info sheet, “Optimize Oil and Gas Operations with Efficient and Integrated Content Management.”