Information technology has never been more important in the oil and gas industry, but the key is to align IT with your business goals.

Energy companies are increasingly becoming global in their operations. They are also drilling numerous small wells as opposed to a few large ones. All these new sites and geographies must be connected through IT, making it a critical success factor.

A lot is at stake. Without the right IT solutions, inefficient communication between disparate assets, and key stakeholders will hinder productivity. IT is the chain that connects field staff, technical staff, management, and all other stakeholders, and if that chain is broken, operational inefficiency inevitably follows.

Conversely, smart IT decisions can increase productivity by allowing for collaborative problem solving and decision making, better asset management, and faster reactions to opportunities. Tools, such as advanced transmission technology, “smart” sensors, and analytical software, result in higher recovery rates and reduced costs which provides a significant competitive advantage over energy companies not embracing the new communication technologies available.

IT is both the ante to get in the game and the card you can play to win the game. To ensure adequate communication in remote and spread-out locations, you have to have effective IT. But, well-planned IT will also help you get ahead by improving processes to increase profitability.

However, it’s not as simple as deciding to invest in IT solutions. You have to make the right investments and then deploy them correctly.

Every oil and gas company has different operational needs and challenges, so it’s imperative when looking at new IT solutions to be aware of your unique circumstances. The ideal solution for one company may not be the right answer for your company.

It’s also important to acknowledge any limitations regarding IT expertise. IT is so fast-changing even IT professionals struggle to keep up. There are companies that provide IT consulting and management specifically for the energy sector, and you may decide you need such assistance to help in your decision-making, planning, and implementation.

The key point to remember, as you consider any investment in IT, is IT is the “tail” and your company is the “dog.” Don’t let the tail wag the dog.

Although IT is necessary to survive and succeed, it isn’t an end in itself. If an IT investment doesn’t directly support your business goals, then it’s not a good investment.

However, with expert guidance and a commitment to using IT to its full advantage, your investment in IT can pay off many times over.

Jonathan Nituch knows a lot about technology for the workplace. He is Executive Vice-President for Fortress Technology Planners that offers a range of IT services to SMEs across Canada. A Certified Business Analysis Professional and a Project Management Professional, Jonathan develops and manages large IT projects for clients. He also teaches business analysis and project management at two colleges of applied arts and technology.

Jonathan Nituch                                                                                                                                                                                                            Executive Vice President                                                                                                                                                                                               Fortress Technology Planners Inc.