Abstract: E-business in the Upstream Oil and Gas Industry: An Evolution in the Energy Business
LIVESAY, JEFF, Wellbid, Inc., Denver, CO
E-commerce companies are increasing daily in the petroleum and energy industries. These B2B (business to business) internet companies seek to help lower exploration and development costs, increase drilling and completion efficiency, reduce overall cycle time, and overhaul traditional methods for property acquisition and divestiture. Online exchanges and trading hubs are already making significant changes in other mature industries such as chemicals, automobiles, and steel.
The upstream oil and gas industry is not far behind. New technologies and business processes have traditionally required long trial and acceptance periods in the petroleum industry due to the risk factors associated with "something new." But changes in the way business is transacted, specifically via the Internet, are coming at an accelerating pace.
These changes will have direct benefits and impact on profits and capacity. Oil and gas companies that readily adopt cost-saving Internet-based application services will see significant reductions in operating costs and overhead. They will also gain a greater ability to focus on what they do best: finding and producing hydrocarbons.
This paper presents an overview of currently available e-commerce applications and services for the oilfield, and highlights new services that are expected to become available soon. It will specifically review recent "use cases" that have made an impact on drilling and completion efficiency, and describe how these use cases provided favorable returns for both the operator and service companies involved.
AAPG Search and Discovery Article #90911©2000 AAPG Pacific Section and Western Region Society of Petroleum Engineers, Long Beach, California