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Importance of data optimisation in the oil and gas industry

  • 1.  Importance of data optimisation in the oil and gas industry

    Posted 08-28-2025 04:07 PM

    In today's oil and gas industry, data is often called the "new oil" but just like crude oil, raw data must be refined before it creates real value. Every stage of the energy lifecycle exploration, drilling, production, transportation, refining generates massive amounts of information. The challenge isn't collecting it; the challenge is optimizing it.

    Here's why data optimization is so critical in our industry:

    Stronger decision-making

    Unstructured or duplicate data slows down critical operations. By optimizing and streamlining it, companies can make faster, evidence-based decisions whether it's selecting drilling locations, adjusting completion designs, or forecasting production.

     Operational efficiency

    When data flows seamlessly across departments, workflows become smoother. Errors and redundancies are minimized, collaboration improves, and projects move forward without unnecessary delays.

    Cost savings and profitability

    Optimized data reduces non-productive time (NPT), lowers equipment downtime, and helps maximize asset utilization. In a high-stakes industry, even small efficiency gains can translate into millions in cost savings.

     Improved reservoir management

    Clean, reliable seismic and geological data allow engineers to model reservoirs more accurately. This leads to smarter recovery strategies and better long-term field development planning.

     Predictive maintenance and reliability

    Optimized equipment data fuels predictive analytics, enabling us to identify early warning signs of equipment failure. This means less downtime, lower maintenance costs, and improved safety.

    Regulatory compliance and safety assurance

    Accurate, optimized data ensures that compliance reports are reliable and that safety critical systems are continuously monitored protecting both people and assets.

     Foundation for digital transformation

    Perhaps most importantly, data optimization is the backbone of innovation. Artificial intelligence, machine learning, automation, and the digital oilfield all rely on high-quality, structured data. Without it, digital transformation stalls.

    At the end of the day, data optimization is not just a technical process, it's a strategic advantage. It turns overwhelming volumes of raw data into actionable insights that drive efficiency, safety, and profitability across the oil and gas value chain.

    The companies that prioritize it today will be the ones leading the industry tomorrow.



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  • 2.  RE: Importance of data optimisation in the oil and gas industry

    Posted 08-29-2025 09:15 AM

    Nice article describing the potential benefits if one re-engineered the workflows around data management and supported them with competent staff and useful technology.

    ·      Regrettably, data management/data quality is a wicked problem generally associated with a high level of organizational irresponsibility and multiple dimensions based on the disciplines responsible for data acquisition and interpretation, and between the requirements of data made for immediate vs potential future use.

    ·      Most data collected is never looked at or touched after the time of acquisition which erodes the business case around the optimized data process you are advocating.  So investment in data cleanup, metadata capture and data stewardship in the large look like bad business decisions.  To increase the likelihood of action you need to be very clear on the specific data classes and data types you think need to be addressed and the impact of lack of action and explain it to the potential user management community, but retain skepticism about the likelihood of success.

    ·      We all instinctively know that good data + good data = good data, that bad data + bad data = bad data.  What is difficult is that adding new good data to bad data produces bad data, where bad means untrustworthy for the purpose we intend to use it for.  Conceptually, this means that what might have started out as a search for a deterministic answer has to be approached statistically due to the lack of reliability of the data.

    ·      The rogue's gallery – that is the sources of bad data-  is large and can impact 2D, 3D, and 4D problems.  Consider sources like uncalibrated, drifting, or dead sensors, incorrect interpretations, issues in upscaling or downscaling measurement spaces in x,y,z, wrong locations, incorrect time stamps- the list is long and varoed making validation complex.  That's all part of the landscape one would have to traverse to get to your optimized state.

    ·      The data management / data quality morass is not new, although data sets have rapidly gotten larger and more complex due to technology.  Perhaps data browsers that came in along with the drive to analytics allow users to find a company's data, but I am certain that companies can and do spend money on repurchasing data they own but can't find. Data validation remains on the user's shoulders at the time of need and probably does not result in improved enterprise data quality globally.  Paul Simon wrote an additional verse to the song The Boxer that goes: "After changes upon changes we are more or less the same;
    After changes we are more or less the same.

    ·      If you made it this far, I will suggest there is an article in the New Yorker magazine that you should read called Vaunted by Zach Helfand which describes the fact checking process and activities they go through.  Obviously, their use case is not scientific data flowing through E&P organizations. But it illustrates what can happened when an organizations management recognizes the need for accuracy and invests in the people with skills and is willing to slow down production cycle time to get to data quality on output. 




  • 3.  RE: Importance of data optimisation in the oil and gas industry

    Posted 08-30-2025 11:11 AM

    Unfortunately (for the O&G industry that is), my 50+ year experience with data management supports the challenges that Mr. Feineman's post details. The trite phrase that "data is a critical " asset doesn't ring true in most organizations. From the C-suite to the drilling floor we just don't put the effort into adequate data management practices. My generation tried and failed to correct these problems and handed them off to the current generation.

    The data sets are larger today, more diverse and even potentially more valuable. We have frameworks that would help companies get more out of the data on hand with several commercial solutions. But we just don't do it!! This article could  have be written 30 years ago and it would have been just as appropriate then as today. Our failure is in execution. Now the shiny new toy ia AI. We focus on the algorithms and the large language models and still not the data. Still most companies struggle on, complaining that our adoption of AI tools are sluggish. Guess what "we have met the enemy and it is us (apologies to the cartoon character Pogo many years back..




  • 4.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-04-2025 05:41 AM

    thank you Jim

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  • 5.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-04-2025 05:41 AM

    thank you David. 

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  • 6.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-05-2025 11:30 AM

    I would add one final thought since you framed the discussion as about "optimizing" data.  When we look at end to end business processes for doing work, thinking about optimization generally boils down to choosing between 3 objectives.  You could say it takes too long to get to the end product, so therefore you want to optimize to increase the speed of dealing with things so that you get results faster.  You could say it costs too much to produce the end product, and therefore want to get the same product but cheaper than before.  Or you could say you want to improve the quality of the product that you are getting. My opinion is that optimization to get better quality generally requires you to slow down the process and do new activities with people or machines that increase costs.  And my interpretation of your optimizing data concept was to try to improve the overall quality of an enterprise's data asset.  If the reality of implementing your vision adds costs and delays access, it may shed light on why gaining traction with management on this class of issues is difficult.

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  • 7.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-11-2025 12:30 PM

    It's essential to start with the end in mind-clearly defining the problem we're solving before diving into vast volumes of data. I'm a strong proponent of establishing an enterprise data foundation that enables seamless access to high-quality data. Especially with today's heightened focus on AI, managing data effectively is no longer optional-it's imperative.
    Subsurface workflows involve hundreds of data types, making it critical to identify and prioritize the datasets that directly align with end goals. As a former leader in the global data arena, I've seen firsthand the impact of having executive sponsorship and organizational alignment around data standards, quality metrics, and continuous improvement. Recognizing data assets as strategic-just like production barrels with KPIs-helps teams embrace their data journey with clarity and accountability.



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    SushmaBhan
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  • 8.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-16-2025 03:55 AM

    Thank you so much Sushma 

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  • 9.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-11-2025 01:14 PM

    David,

    Both your original post and its coda spoke loudly to me. My tiny consultancy chews on diverse data sets to optimize quality. Our resulting insights have taken 2 to 5 years in the most complex cases but even the quickest results follow the same pattern. What happens is that different data sets provide partial answers while offering apparent contradictions. For example, anomalies detected by ocean floor geochemical surveys will mismatch locations of both sea-surface slicks and seismic DHIs (direct hydrocarbon indicators).

    Resolution includes an understanding of the radius of detection of each method, analysis of positional errors and even review of hand-written notes by the original surveyor. At some point, the data reach critical mass when we achieve a testable hypothesis that fits all the scrubbed-clean data while rejecting data that fails validation (bad coordinates; mislabeling and even fraud). We have made a living (just) by rolling such insights into non-exclusive studies.

    AI tools help when we know how to prompt them which knowledge may come late in the process. Data management vendors know this so have developed scanning tools to identify metadata gaps and errors and either correct them (80 - 95% range) or flag issues that require manual correction. Smart organizations will access such vendors rather than try to build their own capacity or (shudder) continue to ignore the problem. 

    Disclaimer: I'm on the Board of AAPG's Datapages subsidiary. We are working on bringing data access solutions to our membership and publishing partners. See more at https://www.aapg.org/resources/datapages



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    William Dickson

    Dickson Intl. Geosciences(DIGs)

    Houston

    billd@digsgeo.com
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  • 10.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-11-2025 07:11 PM

    William

    After reading your post, I remembered something I had seen a long time ago.  At the beginning of the Mythical Man-Month there is a picture of a menu from a restaurant in New Orleans with a quote at the top.  It reads: "Good cooking takes time.  If you are made to wait, it is to serve you better, and to please you."  The moral that complex code took time to prepare carries over into achieving fit for purpose data quality.  Glad to hear that you are making some inroads on projects that improve data quality when conflating data from multiple sources.

    At the risk of showing how long ago I was in the data quality swamp, in the 1980s the whole issue of data quality was actively being discussed by cartographers and surveyors. 
    In 1988, they came out with a proposed standard for digital cartographic information that identified attributes like lineage, positional accuracy, attribute accuracy, logical consistency, and completeness which in aggregate would help define a data sets fitness for a particular use that could then be encoded in some form of metadata label.  I believe that showed quite insightful and innovative thinking on a tough problem, although I suspect many of the folks working in the area within E&P companies have probably never been exposed to it- but large organizations seem like they tend to minimize the value of past learning.




  • 11.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-12-2025 01:41 PM

    David,

    Ah, the swamp! My O&G career began with Texaco Exploration Ltd, mapping in Canada's frontier regions (ie, everything except the Western Canada Sedimentary Basin or WCSB). A running disagreement erupted between an interpreter who couldn't get his loops to tie one line, and the surveyor of that line. One Monday morning, the interpreter discovered, sitting on his desk, a sapling with the shot point tag still affixed. End of argument; start of re-interpretation.

    My early lesson then was to engage with whoever had touched the data. Not always possible when material came from an archive but often during a coffee break I might turn up an inference ("Oh yea, I remember that survey; check with Miss R ...."). Later on, working offshore West Africa, I learned that digital survey information could still be misleading: there have been three different Pointe Noire datums. On a project for the MMS (now BOEM) about 2008, neglecting to specify a datum & projection for EACH GIS layer in a NAD83 (North American Datum 1983) project meant trouble. The GIS software assumed NAD27 if it didn't find a .prj (projection) file for the given layer. So I apply mapping standards while like Ronald Reagan, also "trust but verify". Call me a "Slow Cooker".



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    William Dickson

    Dickson Intl. Geosciences(DIGs)

    Houston

    billd@digsgeo.com
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  • 12.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-16-2025 03:54 AM

    thank you William

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  • 13.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-16-2025 03:49 AM

    thank you so much for this 

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  • 14.  RE: Importance of data optimisation in the oil and gas industry

    Posted 09-16-2025 03:47 AM
    Edited by Oluwatosin Abikoye 09-16-2025 03:53 AM

     David, thank you once again for your response and I went through the article you suggested-"New Yorker magazine that you should read called Vaunted by Zach Helfand' and it was impactful

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