Business Spotlight

Home   >   Business Spotlight   

DataGumbo: Getting Rid of Invoice Engineering is Possible

Rig Lynx
  • By Rig Lynx
  • Aug 11, 2020
  • Category : Business Spotlight
  • Views : 2360

 

Whether hot and dusty, freezing cold or perched over saltwater, a constant geolocationally-agnostic task at hand is that stack of paper tickets and invoices that proliferates across the desk of the ‘company man.’ With years spent in college and various training courses to responsibly manage the safe construction of productive wells, paperwork can feel a Sisyphean side chore — with two to three hours a day spent stamping tickets. In 2020, this waste of time — not to mention resources — is beyond undesirable and no longer necessary.

 

Around 85 to 90% of services performed on-site could be moved to automated contract execution to track the delivery of goods and services performed. To do so, both buyer and seller will need to identify agreed sources of data to feed a smart contract, which is essentially a codified version of a natural language contract broken into computer script. 

Blockchain and smart contract technology can be leveraged to rid the industry of paper tickets and paper-based thinking in invoicing and payment processes.

Applications of Technology

Several examples of manual, paper-based deliveries imperative to site productivity that can be automated right now using existing sensors and data sources from the drilling site include: 

Diesel Fuel


Whether delivered by vessel or truck, fuel delivery measurements can be automated by using a temperature-adjusted meter as the fuel hits a rig’s tank providing access to real time, digital settlement information for fuel delivered.

 

Rental Tools

 

Service providers must track the location of their tools for billing purposes, just as oil companies look for invoices based on either levels of service or per tool daily charges. By combining the data available in both of the counterparties’ systems, rental tool data can be tracked to a site by trucking manifest, GPS or RFID technology with time in the hole tied to bit depth from rig information and the BHA section of an IADC daily tour sheet.

 

Field tests have shown that using these types of sources for automation yields a 98% accuracy rate compared to the current manual methods.  Instead of spending weeks or months getting to finality the parties have updated charges daily.  Furthermore, immutable data can be shared with project participants in the format they need: broken down by tool and product line for a service provider and in a consolidated service line item for an operator.
 

Cost Reimbursables
 

For frequent cost reimbursable items such as EDR, forklift rentals, shaker screens, etc., charges are often binary or clearly prorated. As a result, the use of simple checkboxes in a digital morning report or IADC signed by a company man can serve as evidence enough for billing automation. This ensures the service provider gets paid for the extra services and operators only pay for what their personnel confirm occurred.
 

Paper Tickets
 

Electronic field ticketing systems have become extremely affordable and flexible as of late.

Many of the companies that exist today provide a free iOS app and charge a few pennies or dollars a ticket, while allowing service companies to configure tickets to whatever their particular services offerings are. Tickets can then be either signed on a device in the field or work flowed to the appropriate signatory. Even in this manual process, the digital results are much easier to track, consume and pay from then triplicate paper tickets.

Moving to Automation

Automated smart contracts are not going to solve every aspect of billing issues on-site. But they can certainly relieve the burden of busywork on an operator’s representative and the service providers. By alleviating the mundane tasks of stamping tickets and processing paper invoices, technology can serve as a boon to better streamline resources and the time for that of the company man. 

 

Andrew Bruce, Founder & CEO, DataGumbo

 

 

Andrew Bruce is the founder and CEO of Data Gumbo, a company he founded in 2016 after spotting an opportunity to eliminate a sizable cost inefficiency between an oil supermajor and one of its suppliers. Data Gumbo provides GumboNet™, a trusted industrial blockchain network that automates smart contracts and transactions for asset-heavy and capital-intensive industries.

 

 

Come join our community!

Download the Rig Lynx app here

 

Comments (0)

Leave Comment


Check out our other stories

Rig Lynx
Feb 24, 2022

  With the recovery of the oil and gas industry in full swing it is time to catch up on some training. We would like to introduce Flying A Services managed by industry professionals and courses are available for booking right now. TRAINING Flying A Services LLC currently offer the following face to face courses: - Introduction to Well Ops – 5 Days “Intro to Well Ops” is designed to give the non-technical personnel involved in oil and gas production a comprehensive understanding of the cradle to grave process from initial selection, well design, well construction, production and finally, abandonment and decommissioning. It is specifically intended to give a better understanding of risk management throughout each stage of the process and would be ideal for underwriters, financiers insurance personnel and lawyers involved in the energy industry. With the “Energy Transition” well under way around the globe, the course will touch on alternative energy sources to give a basic understanding of what is to come. An exam on day 5 will confirm understanding prior to final feedback session. Planning for Success – 1 Day This course will benefit any person from the top down who is involved in the design, planning or managing drilling, construction, production, manufacturing or similar industries. There are no prerequisites for this course other than a desire to improve your operations as a whole. It is a short one day course which will result in cost savings throughout your project and give the basis for further performance development. The intention of the Planning for Success Course is to provide an understanding of how to improve operations and increase efficiency. The course will enable the student to recognize and identify where invisible lost time is impacting operations and how to overcome it by ensuring optimum resources and proper preplanning is carried out. The results of using maximum resources will be demonstrated using film archive and team group activity sessions. Finally, there will be a quick summary and feedback session. Plug, Abandon and Decommission Course – 3 Days The course will benefit any person who is involved in the design, planning or managing drilling, completion or field operations as well as government regulators and inspectors. Prerequisites for this course are general mathematics and science skills and a basic to intermediate understanding of drilling and cementing operations, casing and tubing components and well completions. The intention of Plug, Abandon and Decommission Course is to provide a basic understanding of wellbore plug and abandonment (P&A) and well decommissioning concepts, including why and how wells are temporarily suspended and permanently removed from service. The course will cover the basic principles of well integrity, well barrier element (WBE) installation and WBE verification and acceptance criteria. Additionally, Oil and Gas Industry guidelines and standards together with various country legislation, laws and regulations will be reviewed. Service company and operator recommended practices are covered compared and contrasted including a look at the latest P&A technology, tools, methods and procedures through case history examples. Finally, there will be a quick summary and feedback session. Requests from clients for other courses can be discussed on demand. Well Control Assurance Services A Well Control Assurance Program (WCA) as offered by FAS is designed to minimize the risk of a well control event within all the well operations undertaken by the oil company (drilling, workover and production operations) in their worldwide operations. FAS puts this forward in lieu of the idea of a fulltime Well Control Advisor because we feel it has distinct advantages over a single person. WCA is the integration of a well control system within the Company consisting of training, development of a well control philosophy, focus on the prevention of serious well control events (prevent escalation to a blowout with early intervention). FAS will provide specialists with career paths and experience that make them well suited for this project where their worldwide experience can be applied to this effort, and it is a means by which the experience of a life time can be transferred to the next generation of oil men and women so that they can have the benefit of the lesson learned over the years. Additional Flying A Services: Project management worldwide on any energy project – drilling, abandonment, decommissioning, geothermal, integrity and well control. Provision of eTalent Recruitment Software to ensure clients have the team they need for success. Lean Six Sigma Training and provision of performance optimizing OpexDrive Software Platform for all business needs Human Factor, HRO and Leadership Training Courses available on demand. For further information contact Tom Macrae Tom Macrae – Flying A Services LLC Founder / Managing Director +1-310-895-6690 tom@iwcf-fas.com  www.iwcf-fas.com  

Rig Lynx
Dec 01, 2021

  Happy 4 Years Rig Lynx!   There is still a need for what we do   We are not Facebook or LinkedIn   But it seems that sometimes our feet fit the same shoe   We don’t do politics, it’s easy to stop the spin     Offering a place to meet up with old crew mates   And for a time, we took off like a rocket   But it seemed like there was too much on our plate   We expanded and updated the app that was in your pocket     Our goal has always been the same   To create a place where crew, friends and businesses can engage without delay   Nothing is better than camaraderie, it is this that fuels the flame   We are still connecting people in the industry every single day     So here is to our next year of fun, updates, and glory   By this we mean work from sunup to sundown   To bring the industry a place, to tell tales and to share their story   And be the best smallest industry network around     Source: A guy that doesn’t do poetry well :)   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here  

Rig Lynx
Dec 16, 2020

  IAWCI™ is changing the way the Industry works with training. By bringing together Instructors, Providers, and Subject Matter Experts they are working to strengthen Well Control Training for the future.   IAWCI™ provides, Instructors a platform to discuss, create, and enhance well control training topics. For Providers of well control training, they connect instructors to assist in curriculum enhancement and virtual class development. With Subject Matter Experts, IAWCI™ gives them a place to voice concerns, ideas and topics that should be taught for the 21st century well control courses.   As a member of the IAWCI™, you have an opportunity to improve your well control skills, enhance your career, and impact the industry.  Whether you are a free member, or a paid member, the International Association of Well Control Instructors is your source for content and personal growth.   IAWCI™ is an Association that provides 24/7 networking and continuing education to the Oil and Gas Industry internationally. Their primary focus is to advance the unity of instructors so that the entire industry may benefit from the global conversation, not only in the classroom, but also in each student’s daily work lives.   To Strengthen Well Control Training for the 21st Century.   "Every Class, Every Time, Everywhere"™   You can find out more by visiting their website or become a free member today!   Visit IAWCI on LinkedIn and Facebook   We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here