Navigating the Energy Evolution: Dynamics 365 in the Oil and Gas Realm

The oil and gas industry is a dynamic yet volatile industry, which continues to thrive and evolve. Geo-political factors have a direct impact on it as it tries to maximize its functionality to meet the global demand for fuel. Only in 2022, the world consumed 99.61 million barrels of fuel per day. Hence, the pressure on the oil and gas industry is immense – to strike the balance between meeting the ever-increasing demand for fuel while adopting sustainable practices that reduce their carbon footprint while simultaneously being cost efficient.

To sustain in the tricky realm of affordable and clean energy, oil and gas companies rely on ERP solutions that leverage the power of data, Artificial Intelligence, and the cloud to drive environmentally sustainable, cost effective and maximized productivity strategies.

This blog analyzes the operational problems faced by the oil and gas industry and how the industry’s digital transformation is reshaping its functionality, under the light of Microsoft Dynamics 365 as the torchbearer for change.

Why Do Oil and Gas Companies Need ERP?

Oil and gas companies work at an extensive scale, with three main process areas (upstream, midstream, and downstream) where efficient management is of essence. From procuring crude oil and complying with international regulations to supplying the final product before rate fluctuation, every step needs to be seamless and time efficient. However, due to the extensive nature of the operationality, oil and gas companies are bound to face some hitches that negatively impact the operational flow. Here are some of the operational problems faced by such companies which indicate a need for a business management solution like ERP:

• Inefficient Asset Management: Oil and gas production assets are very costly, and it is imperative to manage them efficiently, otherwise the result is early depreciation and costly maintenance of such assets.
• Fluctuating Prices: Investments and production of oil and gas products is highly dependent on their international rates, which tend to be very volatile. This discrepancy often causes loss and imbalance in demand and supply.
• Lack of Visibility Across the Supply Chain: Supply chain is a core element of the oil and gas production workflow but uncertainty and disruption in it can cause wastage and delay in order deliveries, negatively impacting the profitability.
• Regulatory Compliance: The complex and ever-changing nature of international regulations might cause high fines and threaten the business reputation.
• Labor Safety Risks: Workers are often exposed to hazardous environments that pose a threat to their safety, during the process of oil extraction or refinement. Health and safety risks bring legal complexities for the oil and gas companies.

Dynamics 365: Tackling Operational Problems in the Oil and Gas Industry

Considering the volatile nature of the oil and gas industry and the plethora of challenges impacting its operational productivity, digital transformation of business practices has become critical in today’s technologically progressive age. According to Forrester, migrating their operation to advanced technologies like the Cloud yields 80% chances, for companies in the energy sector, to grow their revenue.

ERP solutions like Microsoft Dynamics 365 is the steppingstone for oil and gas companies which provides them the imminent exposure to the cutting-edge advancements in the technical realm. Its ability to seamlessly integrate with other Dynamics 365 applications like Power BI and Power Apps amplifies its functionality and introduces operational productivity in workflows by streamlining end-to-end processes. The added operational efficiency enables oil and gas companies to upscale their impact in the energy sector while achieving three key feats:

• Cutting Costs
• Reduce Carbon Footprint Through Sustainable Practices
• Meeting High Demands for Fuel

Let us delve into how Dynamics 365 can help oil and gas companies enhance their efficiency.

Smart Asset Management
Seamlessly managing high-value company assets is key to mitigating operational redundancies. Dynamics 365’s asset management system efficiently handles, sources, and maintains organizational assets which improves their reliability and performance in their respective lifecycles. By providing access to technologies like Internet of Things (IoT) and Digital Twins, Dynamics 365 allows professionals to effectively calibrate their production and refining assets. It even empowers the assets to analyze and manage their own performance through predictive maintenance capabilities.

Regulatory Compliance
Due to the multi-faceted and international nature of the logistics involved in oil and gas processes, the regulations are often too much and too complex to handle seamlessly. But with Dynamics 365, companies can keep up with the ever-changing industrial regulations and establish policies that are compliant with international regulations with real-time updates. An added benefit of introducing enterprise-wide policies compliant with international laws is that it builds a credible reputation which attracts international investors. Every transaction can be tracked, verified, and audited by the solution.

Supply Chain Management
Supply chains, especially the international ones, are volatile and extremely susceptible to geo-political factors and oil and gas companies rely heavily on international supply chains. Dynamics 365’s industry-grade supply chain management capabilities allow professionals to get real-time updates on their supply chains. The solution also proactively employs AI to leverage real-time insights and analytics to forecast any disruptions in the supply chain. This empowers organizations to actively prepare for any surplus or shortage of resources.

Project Management
The inherent excessive costs and risks associated with oil and gas operations highlights the need for robust project management that unifies all related data sources. Dynamics 365 streamlines all facets of the oil and gas processes which lends real-time visibility regarding all operations. It minimizes financial complexity by automating reporting and analytics. The solution also enables remote workforce management with intelligent remote monitoring tools as well.

Organizational Health and Safety
Dynamics 365 provides multiple capabilities to improve labor safety. It leverages intelligent capabilities to identify workplace hazards and conducts regular health checks. Its analytical capabilities introduce safety policies that ensure labor safety, in compliance with international safety standards. Lastly, by integrating safety policies and prioritizing worker safety, it revolutionizes the workplace culture as well.

Integrating IoT, Mixed Reality and the Cloud
The modular nature of Dynamics 365 lends flexibility with its easy integration with other Microsoft technologies like Azure Cloud, Azure IoT, and HoloLens 2 with Remote Assist. Dynamics 365 leverages the functionality of such technologies and enables the professionals to bridge the gap between them and the energy plants. They can be present virtually and monitor oil and gas operations with advanced data processing and analytics. It also ensures their safety where they can remotely perform operations in hazardous environments.

By leveraging the power of cutting-edge technologies and unifying business operations, Dynamics 365 has been swiftly enabling revolutionary transformation in the oil and gas industry. It can empower petroleum experts by enhancing productivity, automating flows, mitigating safety risks, and enabling them to strategize environmentally sustainable policies that yield clean energy to meet customer demands.

Scale Digitally with Dynamics Solution and Technology

To navigate through the volatile realm of the oil and gas industry and to implement Microsoft Dynamics 365 in a way which creates impact, your oil and gas organization needs an expert partner like Dynamics Solution and Technology. Our team of industry experts access your needs and curate custom implementation plans, that help your oil and gas business get that competitive advantage. With our top-notch post-implementation support, your business will flourish with its digital transformation in the industry.

Our extended range of digitally transformed clienteles from various industries have been reaping the benefits of their Microsoft Dynamics 365 powered digital transformation in the form of increased ROI, productive operations, and agile processes. Our digitally empowered clients in the Gulf and MENA regions are a testament to our unwavering need for excellence.

Contact us now and let our experts assess your business need to create a custom plan that caters only to your business!