Abstract.

Adoption of standards in today's business ecology is a strategic decision. The strategic need for E&P industry standards in the area of integration of business processes and information sharing was the implicit underpinning of the formation of Petrotechnical Open Software Corporation (POSC) in 1990. The business drivers are low oil prices, increasing costs and risks, lower margins, and increasing complexity. The oil industry responded by focusing on core business, consolidation, risk management, collaboration with partners, productivity, reducing costs, improving reservoir performance, and globalization.

The use of standards allows for the sharing of data and information across different groups over the life cycle of an asset. Industry standards improve the flow and quality of information throughout an E&P organization; reduce time, cost and risk of solutions; enable new business practices and new relationships between suppliers and consumers.

Standards allow better decisions due to improved information resulting from better access to compiete data and finally, dramatic improvement in bottom line results (reduce cost and time). Cost savings of 25% are targeted; time savings of 40% have been noted. Improved margins (£/BOE) are being realised by simultaneously decreasing costs (C) and increasing value (BOE).

INTRODUCTION

Adoption of standards in today's business ecology is a strategic decision; most companies have either embraced them or they will. The strategic need for oil and gas industry standards particularly in the area of integration of business processes and information sharing was the implicit underpinning of the formation of Petrotechnical Open Software Corporation (POSC) in 1990. It was clear that a big part of ‘unit cost’ came from duplication and overheads across the boundaries of suppliers, partners, governments; and that those who collaborate on reducing this cost would realise significant competitive advantage.

Anderson Consulting estimates that about ﹩5 billion per year could be saved on E&P information management costs. The business drivers for POSC are low oil prices, increasing costs, lower margins, and increasing risks. The oil industry responded by focusing on core business assets, consolidation and restructuring, implementing risk management, increased collaboration with partners, increasing productivity, reducing costs, improving reservoir performance, and a move towards a global business'.

The use of standards allows for the sharing of data and information across disciplines, functions, companies, countries, partners, throughout the life cycle of an asset (Fig. 1) so that collaborative groups can focus on concurrent, interactive creative thinking and stakeholders can access and respond to pertinent information in real time. Industry standards will improve the flow and quality of i

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