New Oracle Report Shows that Oil and Gas Companies are Accumulating Data at Unprecedented Rates, but are Falling Short on Turning Data into Revenue
Oil and Gas Company Executives Indicate They May Be Losing On Average An Incremental 22 Percent of Revenue per Year by Not Fully Leveraging Collected Information
Redwood Shores, Calif. – July 17, 2012
Today Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from oil and gas companies and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth.
Oil and Gas Key Findings
data deluge is here.
Seventy-four percent of C-level oil and gas executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 96 percent more.
For all industries collectively, 94 percent of the C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
for improvement. Oil and gas executives say they are not prepared to handle the increasing amount of data they face.
Twenty-seven percent of oil and gas executives give their organization a “D” or “F” in preparedness to manage the data deluge – and 54 percent give themselves a “C” or lower. Only 13 percent of oil and gas companies give themselves an “A.”
Respondents say they are unable to realize, on average, 22 percent of additional revenue per year, translating to an average of $103.6 million per year (figure based on the average revenue of organizations surveyed) – by not being able to fully leverage the information they collect.
For all industries collectively, the study found that 29 percent of executives give their organization a “D” or “F” in preparedness to manage the data deluge and 93 percent believe their organization is losing revenue opportunities – representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of their annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives in the broader study give their organization an “A” in preparedness.
do not have or cannot get to the timely information they need. Respondents from the oil and gas industry note they are frustrated with their organization’s data gathering and distribution capabilities.
Specifically, 32 percent note they cannot give their business managers access to the pertinent information they need without IT team support, 29 percent do not feel they have the right systems in place and 23 percent feel they are using systems that are not designed to meet the unique needs of their industry.
applications are important.
Seventy-four percent of oil and gas organizations use industry-specific applications or software to help leverage information to make strategic decisions.
Oil and gas executives, however, still see room for improvement in their industry-specific applications, with 36 percent of executives looking for more industry-specific project management applications, 32 percent seeking more industry-specific regulatory compliance software and, for the oil field service and downstream sectors, 26 percent are seeking customer relationship management platforms more specific to their industry needs.
is hard at work in some areas; still facing challenges in others.
Oil and gas executives note that they are making the best use of their data in the areas of financial management (42 percent), production (36 percent) and distribution (26 percent).
The executives say that safety (26 percent), project management (23 percent), maintenance/asset management (16 percent) and geological/seismic exploration (16 percent), and for the downstream and oil field service sectors only, market intelligence (26 percent) are the areas in which they are struggling most with their data. Thirteen percent of executives noted they were not struggling with data in any area.
a path forward: Oil and gas respondents note their organization must improve information optimization.
Top priorities include direct access for business managers to business critical information (48 percent), improved training for employees to better make sense of information (32 percent) and acquiring tools to collect more accurate information (32 percent).
access the full report – which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data – visit here.
“The data deluge is nothing new to the oil and gas industry, as data has always been fundamental to exploration and production. As firms deal with new unconventional plays, such as shale gas, tight oil, as well as ultra deepwater and oil sands, big data is more important than ever. The ‘From Overload to Impact: An Industry Scorecard on Big Data Business Challenges’ study provides the insight into where the industry is facing the most acute challenges. To move forward, oil and gas executives must think analytically and ensure that managers have the applications and access they need to examine business-critical data first-hand,” said Charles Karren, director, oil and gas industry strategy, Oracle.
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NASDAQ:ORCL), visit www.oracle.com.
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