Putting A Value On Your Production Software

Measuring ROI on Oil and Gas Production Software

It goes without saying that measurement is important in the petroleum industry for every barrel of oil and MCF of gas produced. Yet when it comes to measuring the performance of E&P software solutions, the gauge is often missing. Just as a well isn’t complete without metering, E&P companies should get a good reading on the business value their production reporting software delivers.

Why Measuring Software Value Matters

Measuring the business value that a production reporting product creates for an oil and gas operator is essential in revealing whether companies are getting a return on their software investment. To do that, software owners (or renters if in the cloud) should focus on a few clear and quantifiable benefits.

The Benefits of Oil and Gas Production Software

Oil and gas production tracking software offers many benefits, including a clearer view of assets and improved operational efficiency. Other business benefits include reduced costs, lowered risks, improved cycle times, and increased revenue opportunities. Cloud-based software offers reduced total cost of ownership (TCO) and “economy of scale.” With W Energy’s solution, you can optimize your production operations in several ways:

Minimize Operational Downtime

Real-time visibility transforms how quickly you respond to production challenges. With live updates and team tracking capabilities, operators can make informed decisions instantly rather than waiting hours for status reports. Production software prioritizes critical tasks while automating routine processes, dramatically reducing operational delays and maximizing team productivity when every minute of uptime counts.

Eliminate Safety Incidents

Field safety reaches new heights through advanced geo-tracking and geo-fencing technology. Custom workflow templates seamlessly integrate safety protocols into daily operations, while automated regulatory reporting keeps compliance simple and stress-free. This comprehensive approach protects your most valuable assets—your people—while maintaining operational excellence.

Consolidate Multiple Applications

Streamlined operations start with consolidated tools designed specifically for field workers. Instead of juggling multiple applications, teams access everything they need through one intuitive platform that works anywhere operations take them. Drag-and-drop template creation simplifies setup, and a user-friendly design eliminates training requirements even when regulations evolve.

Key Metrics for Calculating ROI

Reduced well downtime, improved data handling efficiency, and improved data accuracy are some of the real-world metrics used to track ROI. The following examples can be adapted to your business situation.

Problem Wells

An average E&P company operates 150 wells with an average of 10 problem wells per month. Before deploying a production tracking system, it took about 16 hours to respond to and remediate well production issues. After deploying operational dashboard software, the company was able to reduce response time to 6 hours, resulting in approximately 125 barrels of oil equivalent produced due to reduced well downtime. Assuming an oil price of $67, the operator realized $8,375 in optimized production per month.

Manual Data Handling

At the same E&P company, a staff member spent about 2 hours each day manually inputting operational and production data readings e-mailed from the field and an additional 1.5 hours each day e-mailing reports to partners and responding to requests for data. After deploying a production monitoring system with field data capture and partner data sharing capabilities, time spent manually handling data was reduced to 30 minutes a day. Assuming an hourly rate of $40 for the employee, the company realized an average of $2,400 per month from improved data handling efficiency.

Inaccurate Production Data

Before deploying field data capture and reporting for its 150 wells, the operator encountered approximately 75 data quality issues each month requiring pumpers and office staff to spend 20 minutes each to correct inaccurate production data. Deployment of field data capture and production tracking software reduced data accuracy issues by 65 per month. Assuming an average hourly rate of $40 for employees, the company realized $1,733 in savings per month.

Return on Investment

The E&P company in these examples realized a $9,133 monthly cost savings due to the operational efficiency provided by its production tracking software. Consider the synergy, however, of improved data quality and availability as well as the ability to address well problems before they happen, and the value is much higher.

How much are you paying for your production operations system? Calculate your software ROI by working through a few clear and quantifiable benefits like these examples, adding up the value each provides, and then dividing by the monthly cost of your software.

Why W Energy Software Pays Off Fast

When production efficiency directly impacts your bottom line, choosing the right software partner makes all the difference. W Energy’s comprehensive production operations software has a proven track record of providing rapid returns on investment, typically paying for itself within just a few months. Many clients achieve more than 200% ROI by streamlining operations, reducing downtime, and improving data accuracy across their entire production portfolio.

References:

• ​https://wenergysoftware.com/solutions/upstream/production/
• ​https://wenergysoftware.com/customer-success/production-case-study-cheyenne-petroleum/
• ​https://wenergysoftware.com/resources/insights/avoiding-well-downtime-and-lost-production/
• ​https://wenergysoftware.com/customer-success/production-case-study-manti/