Over the past years, energy prices have been declining drastically and as a result, the pressure is being exerted on the operating companies in the oil and gas industry in order to maintain profitability. To tackle this challenge, these companies are currently devising ways to reduce the costs without affecting unplanned downtime or the safety of the environment and employees.

Asset performance tools and enterprise asset management software (EAM) can be used to save huge sums of money to these companies because they are specifically designed to increase both efficiency and effectiveness of maintenance. The following are the ways oil and gas industry can reduce costs through asset management.


Improving Uptime

When it comes to the oil and gas industry, downtime is a great challenge. It is basically a high asset-intensive industry and new wells are supposed to be drilled regularly. Besides, assets are placed in locations that are quite remote and hostile. It generally leads to expensive and significant downtime in production which can lead to serious issues related to the environment.

The most effective way to increase uptime is to predict some issues before they turn to be failures by the use of risk analysis methods like reliability centered maintenance (RCM) and EAM systems that provide planning, reliability, and analysis methods that can help one determine the risk of a location or an asset.


Planned Work

In any company, having planned work makes things safer, efficient, faster and less expensive when compared to unplanned work. The use of an EAM system enables the company to identify the permits, instructions, right parts and significantly avoids the waste of time. In addition to that, having safety instructions, safe to work videos and personal protection equipment is the most effective way to prevent damage and personal injury.


Warranty Coverage

With proper management of equipment, warranties can greatly reduce the maintenance expenses by moving costs to suppliers and manufacturers. When required work is identified within the industry, the EAM software can inform supervisors to those assets under warranty and make sure that warranties are prevented due to modifications to equipment.

The role played by the EAM software is not measurable, this software effectively tracks the software independently, the elements of those assets and it can also identify the assets that are under warranty. The team under supervision will be alerted concerning the assets under warranty and the ways on how to claim these assets on warranty coverage.

Investing in both enterprise management solution and APM tool can make significant changes in the oil and gas industry regarding safety, efficiency, uptime, and cost c control efforts. It ultimately saves manual effort and reduces unnecessary spending.