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Oil and gas industry growth puts emphasis on process excellence

Staff, Appian
October 9, 2014

Business process management tools are a key component of operational success across the oil and gas industry. This is particularly evident as organizations in the sector must find a way to balance resources across complex supply chains, deal with heavy competition and comply with strict regulatory guidelines. Of course, managing processes becomes more and more difficult as organizations expand, and the oil and gas industry is growing fast in the United States.

Looking at U.S. oil and gas industry growth

Both fracking and traditional drilling methods are contributing to significant growth in the U.S. oil and gas industry. Citing data from the Energy Information Administration, a recent report from The Energy Collective explained that the U.S. oil and gas industry is poised to be able to meet 95 percent of energy demands in the nation for the next 20 years. This represents a significant rise over domestic oil and gas production in recent years. As recently as 2012, 16 percent of U.S. energy came from international oil and gas production.

So much growth in the sector, however, is also leading to more regulation. A recent report from the Tribune-Review explained that legislative bodies in Pennsylvania are working to tighten regulations surrounding fracking. In particular, there are concerns that fracking will use so much water that the state's water supply will fall to detrimental levels. Regulations aim to more carefully and precisely monitor water use and ensure fracking does not contribute to fresh water shortages.

Dealing with regulatory challenges through process excellence

Organizations facing strict regulatory guidelines don't just need to make sure they follow those rules, they must prove that they have followed those laws in every phase of operations. This means that companies don't just have to manage their processes efficiently, they also need to document all of their process. This is especially important in issues like managing the supply chain and recording environmental data about both drilling and fracking practices.

BPM software features built-in audit trails that record who completed different processes, when they handled them and how long they spent doing the work. This kind of information is instrumental in helping managers identify inefficiencies, but it also enables organizations to prove to regulatory bodies that they have complied with industry standards. These internal audit trails are becoming key as the growing domestic oil and gas sector is faced with more scrutiny and tighter regulatory laws.