Rig scheduling is helpful in project planning and project development within the oil and gas industry. Since rigs are expensive, there is a need to be careful when allocating them in the course of any oil and gas project. It also means that the number of available rigs at any one time is limited. Thus it is necessary first to allocate rig with special features to specific projects.
The emergence of rig scheduling software has proven to be more beneficial as compared to the old way of rig scheduling which uses spreadsheets. The key goal of businesses is to reduce expenses and improve their profit margins. Below are the pointers towards the relationship of rig scheduling software and profit margins.
Reduced Errors thus Improving Profit Margins
The old method of rig scheduling using spreadsheets leaves room for errors either regarding numbers or the formulas being used. On another hand, rig scheduling software automation ensures that the errors are minimal or none.
The presence of errors leads to reduced productivity and underutilization of rigs and sometimes losses meaning that the company does get optimal profits. Therefore, with reduced errors, the results achieved are optimal which improves the profit margins for the company.
Rig Scheduling Software Saves Time Increasing Productivity
Rig scheduling software improves the visibility of how rigs are scheduled across the entire company. Thus everyone knows where to find the necessary information, and they can get the information in an instant. This saves the time employees would spend navigating through spreadsheets or enquiring from various departments.
As a result, less time is wasted, and thus the employees spend their time in more productive activities. Increased productivity directly increases the profit margins.
In case of corrections in rig scheduling using spreadsheets, the person who prepared the spreadsheet is required to make the corrections. This is because it is hard for others to navigate the spreadsheets. However, since the rig scheduling software is user-friendly, one can easily navigate it even if they are not the ones who prepared it. This improves efficiency as any authorized person can easily make the necessary corrections. It is also faster compared to the use of spreadsheets thus less time is wasted in rescheduling. Improved efficiency, improves results thus increasing the profit margins.
Rig scheduling software comes with the option of having automatic notifications. This means that any approvals, permits, maintenance, and other necessary activities related to the rigs are carried out on time. Failure to do this means that there could be penalties or other expenses incurred as a result of not carrying out the activities on time. For example, if maintenance is not done on time, this could lead to expenses as a result of machine damage or even reduced productivity due to breakdown. If expenses and losses are reduced, then the profit margins for the project are improved.
With the above information, it is therefore evident that there is a relationship between the use of the rig scheduling software and the profit margins on a project.