Enterprise resource planning (ERP) software has emerged as one of the top investment areas for many companies, with the global ERP software market projected to reach $78.40 billion by 2026, growing at a CAGR of 10.2%. With it, organizations are able to handle a wide range of business functions through a single platform. Accounting, procurement, project management, risk management and compliance, and supply chain activities can all be managed within one ERP program, ensuring that disparate business functions are relying on the same data for greater consistency. These capabilities have led 88% of organizations using ERP software to consider its use instrumental to their success.
Cloud-based ERP delivers these same benefits through a software that is run over a cloud platform, rather than installed and deployed locally via a company’s on-premises network. This means that users across the organization can access ERP software more easily, with the only requirement being a working device with access to the internet. This kind of deployment method reduces costs and makes using ERP software more accessible and convenient for the entire workforce. It enables smarter use of data by allowing teams to collaborate across time and distance, helping to ultimately increase efficiency and productivity.
These benefits hold true for all industries, but cloud-based ERP software can also deliver benefits that are particularly advantageous for certain industries. For example, companies within the oil and gas industry need to monitor production rates, track repairs, develop and complete land contracts, and keep tabs on the numerous variables that can affect how profitable an asset—or portfolio of assets—can be. In these instances, using cloud-based ERP software can provide the kind of real-time insights that simplify logistics, timelines, and operations across teams.
Supporting finance and accounting
Finance and accounting teams need clear, accurate visibility into financial data so they can manage spending and payments. With a cloud-based ERP software, these same teams are able to access new efficient tools that make it faster and more straightforward to process payments and invoices. Individual team members can monitor project spending and collaborate with others to manage, track, and approve investments in real time.
Within accounts receivable and accounts payable, ERP software delivers enhanced visibility—by way of more granular and accurate data—into what is owed, allowing for simplified cash flow management. Some revenue accounting features, like those found within Enertia ERP software, enable teams to split revenue between working interest partners in a well, pay royalty owners, and file regulatory reports. When combined, these capabilities make it easier to receive, allocate, validate, and reconcile receivables, owner taxes, and other deduction payable accounts.
Optimizing production operations
Teams working within production and optimization need accurate well and flow rate data so they can determine the optimal production level for a given asset. The right cloud-based ERP software makes this process more transparent by synthesizing production data to produce a graphical representation of daily production estimates and monthly volume allocations. With data that is updated in real time and distributed across teams, allocation issues can be flagged more quickly, resulting in faster corrections, increased efficiency, and improved performance.
On the regulatory reporting side, ERP software can build upon data from production transactions for revenue processes and regulatory reporting. Depending on the software, regulatory reports for state and federal agencies can even be filed through the software, ensuring ongoing compliance.
Keeping track of land, contracts, and mapping
Researching and completing the various documents required for land use during oil and gas operations is complex and challenging, as each area has its own regulations and own chain of ownership. ERP software can serve as a single comprehensive system for lease and contract management, with added flexibility to define an individual company’s terms and provisions as needed. All of the data is stored in one secure, auditable location, so all details on ownership, contracts, acreage, expiration, and division orders are easy to access. Mapping functionality like the kind found within Enertia Software is also compatible with Esri to display leases, tracts, contracts, parcels and more within the program.
Facilitating faster and easier reporting
Within the upstream space, teams must regularly provide reports to numerous parties—from different business groups inside the company to government entities to regulatory groups. Consequently, being able to quickly access accurate reporting is critical. This process is simplified through ERP software, in which teams can customize reporting details to monitor performance of metrics most important to a given report recipient. A summary report is produced, but the robust functionality of the software means that an individual user can also drill down into each unique data point within each report.
The right ERP software will also be able to accommodate the data warehousing needs of upstream operators and their requirements, allowing for data access and reporting analytics in tools familiar to end users. Integrations with tools like Microsoft Office, particularly Microsoft Excel, makes for each email distribution and intuitive report formatting tools. While less intuitive to read than summary reports produced by ERP software, many teams often desire Excel sheets to share or explore during their own data review. Choosing an ERP software that is compatible with Excel streamlines exporting, with reports that can be exported directly to e-mail for immediate sharing between parties.
Streamlining field operations
Finally, a cloud-based system enables anyone to use the software from any location, including those who work outside of a corporate office with strong network infrastructure—such as field personnel. With field data capture abilities, personnel can capture on or offline, then synchronize when back in range. This feature ensures that teams are using the most accurate, up-to-date field data, which in turn results in greater confidence in operation decisions.
Using a cloud-based ERP software can revolutionize how upstream oil and gas companies do business. It can streamline operations and simplify logistics, enabling employees and teams to make faster, better, more informed decisions. In addition, its ability to be used by anyone across the organization supports greater collaboration and empowers field personnel, building deeper connections and improving overall business performance.