By Petroleum Technology Transfer Council

Affordable software simplifies operations, improves productivity for independent

Wichita independent, Vess Oil Corp., implemented productivity software to tie together operational aspects. While organizing projects, work days and strategies, the software’s increased productivity has paid for the system in early implementation.

Bill Horigan, Vess Oil Corporation, Wichita, Kansas, and Mike Buchanan, Core Productivity/Itex, Inc., Houston

Well-designed software is critical for a growing E&P company like Wichita, Kansas-based Vess Oil Corp. There is software available for all of the technical aspects of operations, including complex data analyses and geophysical interpretations. There are also accounting and back-office solutions. But there is very little available to tie the activities of people and the organization together, and managing projects of the many companies and partnerships in which Vess participates.

Vess describes each of the projects as a juggling act, where there are many different balls (tasks) in the air. The firm wanted to organize and manage the tasks better to gain productivity. Management needed capabilities for:

• Defining and scheduling projects and tasks, team members, and job responsibilities.
• Coordinating employees and contractor activities, regardless of whether they are in the office, at a well site or at any other location.
• Helping all project team members share information (communication and collaboration).
• Controlling and sharing documents with everyone (including investment partners).
• Simplifying approval processes.
• Providing more timely information to all involved in management decision-making.

Managers also wanted a solution on their own secure server, so they would not be required to support it. Some big companies have parts of this functionality, but they have the personnel to maintain, support and constantly modify it. Vess did not want that option, but it did share the need.

TECHNOLOGY CHOICES

Vess initially considered reporting software developed by one of its large limited partners, but this was bulky, designed for the partner, and did not fully meet the firm’s needs.

Vess discovered that Core Productivity software exceeded all of their needs. Plus, it is easy to use and understand; anyone can create projects, not just dedicated project managers. And it doesn’t require internal IT support, because the supplier takes care of backups and support issues. It just makes it easier for Vess to get work done.

HOW DOES IT WORK?

Business information is stored on a secure server managed by Core Productivity. Access is via the Internet, through the Core Productivity software. This means that work and information is accessible to employees, contractors and other partners from everywhere, Fig. 1. Limits regarding what each user can see and do are set individually.

Fig. 1. Productivity software links together all functions of an independent oil and gas company’s operations, coordinating employees, management and external partners.

Changes made by any user instantly update the screens of all affected users in real-time. And important events and changes in status trigger automatic email notifications to all interested parties. People have access to the information they need. And they’re connected with each other.

IMPLEMENTATION

Vess wanted log-ins for employees, for its drilling contractor/ partners and for investor groups. They completed a spreadsheet that provides information in several categories:

• The companies involved (Vess and others).
• The people who could log in (name, phone, email, etc.).
• The access rights and privileges of people who could log in.
• Roles (who can do what).

Vendor personnel created the initial database from these data, and then they spent about two days training Vess and the contractor partners, getting everyone up to speed on system operation. It’s really pretty simple. Everyone who can log in sees a home page that tells them what projects they are associated with, defines the work they and others need to do, tells when the work needs to be done, and provides access to documents that support the job. As they work, they can report on their progress and problems. And multiple mechanisms are provided for them to communicate and share messages, and other information with everyone.

PRODUCTIVITY RESULTS

From my (Bill Horigan’s) perspective as VP of Operations, Vess is now a much better organization. We’re communicating better, and getting things done a lot quicker and easier. We wanted a solution that would help us accomplish what we needed to do, not something that would change how we do everything. 

The fact that we were up and working in a few days says a lot about using the system. Vendor technical support is critical, because Vess doesn’t have an IT department and its people are busy. We can call Core Productivity, whenever any of us has a question, and get a quick answer. They have designed their technical support to be very responsive to the needs of mid-sized and smaller businesses.

When someone walks in with an issue, I turn to the software and ask that person to describe the problem. Before he leaves the office, it is set up in the system, everyone’s aware of it, and everyone has his or her responsibilities and job assignments. This lets me quickly move on to other projects.

The owner of Vess Oil is happy with using the software, as are other employees. The boss is involved with numerous other projects, companies and deals, and can be out of the office for weeks. The system’s accessibility allows him to know what’s going on, wherever he is, and be in the management loop.

All of the documents and everything else that goes with a project is right there, so even someone working on another part of the project can find them quickly. If I had to summarize Vess’s experience in two words, they would be organization and communication. It doesn’t just organize specific projects; it organizes your day and the direction your company is heading.

CHALLENGES

The only difficult issue was setting the proper access rights and privileges for everyone who can log in to our system. We wanted our employees to see the information they needed to do their jobs. We wanted our contractors and partners to see information on the jobs we were doing together with them, but not information on other Vess activities or investor issues. We wanted our investors to see just the information on the projects that we were working with them, including AFE’s and financial reports.

The many different partnerships used among independent producers generate some information-sharing issues that do not exist in other industries. Vess achieved most of its goals in this regard, with one minor exception. That exception was noted and resolved in the software’s current version.

SOMETHING FOR EVERYONE

Co-author Mike Buchanan feels the software provides a comprehensive solution for the entire organization:

• It helps employees by giving them the information they need to do their work and report what they have done, and the communication mechanisms necessary to work with team members.
• It helps management by providing real-time information on all ongoing activities, allowing problems to be corrected before they become serious.
• It helps ownership categorize and understand the work the company does, learn where it is effective, learn where it is not, and adjust accordingly.
• It helps external business partners collaborate and work with you, as if they were a part of your business.
• It helps your company become more competitive and responsive. Things actually get better and simpler.

“Our objective was to make these benefits available to small and mid-sized organizations. Indeed, firms using the software range from several hundred million dollars in annual revenues, to companies with only ten employees.”

ECONOMICS

The oil company pays a monthly fee, based on the number of users who can log in. There are multiple license types with different user privileges and costs, and the fees discount significantly as the number of users increases. Vess pays around $35/user/month.

The system has done considerably more than what Vess expected from the beginning. Productivity improvements have more than covered the user fees. Since there were no set-up or training fees and no long-term contract (the company can cancel at any time), and since very little time and effort were required of Vess to try it, the company did not even bother to do an economic analysis. 

THE AUTHORS
	Bill Horigan is vice president of Operations for Vess Oil Corporation, responsible for engineering, enhancement and exploitation of existing properties. He began his career with Amoco Production Company in 1975, serving in various engineering capacities. He later served as Division Operations manager for Slawson Oil Company, and joined Vess Oil Corp. in 1988 as Operations manager. Mr. Horigan graduated from the University of Kansas in 1974 with a BS degree in chemical engineering and is a member of SPE. He is also a member of the Producers Advisory Group, FOR T.O.R.P., and the North Mid-continent Region of Petroleum Technology Transfer Council.
	Mike Buchanan is president of Itex, Inc., the supplier of Core Productivity software. He has more than 30 years of experience managing the development and implementation of software systems in numerous industries, as well as consulting with corporate clients. He has a BS degree in engineering physics from the University of Kansas, and an MS degree in industrial administration from Carnegie Mellon University. Web: www.CoreProductivity.com, Email: MikeB@CoreProductivity.com.