Energy Knowledge Management Network Connects Industry Leaders

Information technology is changing the way energy companies operate. No longer isolated in remote seas, drilling operations are instantly connected to command centers, quickly moving data, speeding management decisions and allowing worldwide offices to tap into previously unavailable expertise. The CSC-led Energy Knowledge Management Network is helping companies make the most of this new "digital oil field" to improve their bottom line.

Challenges of oil business

Oil and gas exploration requires huge capital and crew investment costs, yet companies are increasingly required to do more with less: lower drilling costs, increase production rates, and reduce manpower. CSC’s Rus Records, who has helped many global oil and gas clients develop knowledge management strategies, found these challenges common across the industry. Records believes that knowledge management is an important tool to address those business challenges.

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"When oil and gas companies get knowledge management right, it is directly tied to operations," says Records. "Best practices will be used the next day in the field. There is an immediate and continuous benefit."

But he notes that major issues include getting executive buy-in and linking knowledge management directly to business. "Many of our clients had the same problems with knowledge management programs. We wanted to give people a chance to get together with peers and share ideas to solve these problems," he says.

The result was the Energy Knowledge Management Network, a CSC-led consortium of 17 companies that meets three to four times a year at member sites. The face-to-face meetings encourage members to share their challenges and knowledge management solutions, and demonstrate ways to link knowledge management strategies with business.

One recent meeting’s theme was "Knowledge Management in the Digital Oil Field," addressing the increasing reliance on IT to manage exploration and drilling operations. Attendees discussed ways to speed decision making, implement and combine new and existing technologies, and optimize the full capability of mature assets, including employees with ingrained experience and knowledge.

Arjan Van Unnik, head of knowledge management for Shell Exploration, was involved with establishing the network, in part because of his belief that knowledge management is directly tied to business performance. He is responsible for 30,000 employees across the globe, and has successfully employed a knowledge management "triangle" toolset encompassing standards and guidelines, Shell’s version of "Wikipedia," and communities of practice.

"Knowledge management focuses on giving people access to what we know as a company on top of what people know as individuals," he says. "If you are in New Orleans, there is someone somewhere within Shell who may know more than you and who can help you do your job more efficiently." That efficiency can directly translate into cost savings for the company.

Real-world case studies

The network also allows companies to explore new strategies for knowledge sharing among global employees, often using real-world case studies. For example, a major petroleum exploration and production company based in Scandinavia has operations in the harsh environment of the North Sea. Network members learned how the company is building real-time operation centers onshore to assist offshore crews. While a well is being drilled, experts in a remote support center oversee the drilling operation and help detect problems early.

Ron Hinn, a knowledge management leader for Occidental Oil and Gas Corporation (Oxy), is also faced with the challenge of sharing knowledge among worldwide employees. Oxy is the largest oil producer in Texas, and maintains oil and gas operations throughout the United States, Middle East - North Africa region, and Latin America. Hinn appreciates the network’s emphasis on real-world experiences and lessons learned.

"I enjoy the insights from other members," he says. "I can see what people are challenged with, and it’s good to kick around ideas." He adds that real-world examples are valuable. At one meeting, a member presented information about an innovative drilling network that had proven successful. "Rather than just reading about it, I saw it in action at the company. Knowing that another company has done it and been successful, versus a theoretical summary, was really helpful," Hinn notes.