The Top ERP Systems for the Oil and Gas Industry

Oil and gas companies can struggle with fluctuating demand, extensive global supply chains, and strict regulatory compliance, which requires flexible and robust enterprise resource planning (ERP) solutions for success. 

As ERP specialists with decades of experience, we guide production, refining, transportation, exploration, and distribution firms to identify the ERP systems best suited to the oil and gas sector’s specific needs.

Oil & Gas Industry Overview

The Oil & Gas industry is a cornerstone of global economies, encompassing a diverse range of operations from upstream exploration and production to downstream refining and distribution. 

Companies within this sector vary widely in size and scope, from multinational corporations to independent operators, all contributing to meeting the world’s energy demands while working to keep emissions low.

The Role of ERP Software in the Oil & Gas Industry

ERP software systems provide a centralized platform tailored to the complicated operations of the oil & gas industry. 

ERP solutions streamline pivotal processes, from the intricate web of enterprise asset management and precise asset tracking to navigating complex regulatory compliance and detailed financial reporting. 

Specialized ERP software addresses the industry’s specific needs, making it indispensable in ensuring seamless operations and regulatory adherence in the oil and gas industry.

Some specific ways that oil and gas ERP software helps enterprises to succeed:

• Streamline complex logistics and supply chain processes. ERPs provide end-to-end visibility across vast global networks of suppliers, plants, transporters, and distribution channels common in the oil and gas industry.
• Enhance inventory and enterprise asset management. The system’s detailed tracking and analytics of materials, spare parts, equipment, and capital assets improve planning and reduce costs.
• Manage the consistently fluctuating upstream production. Customizable ERP dashboards offer real-time data to help exploration and production firms react and adjust to the volatility of onshore and offshore operations.
• Improve scheduling and maintenance. Advanced planning and scheduling functionality ensures the right resources, staff, and materials are available for demanding maintenance needs across assets like offshore oil rigs.
• Ensure compliance and mitigate risks. Robust ERP reporting allows oil and gas businesses to closely track compliance with strict health, safety, and environmental regulations across global operations.
• Drive agility and informed decisions. Integrated data and analytics streamline business operations by providing complete visibility to support quicker, more adaptable strategic decisions amid commodity price fluctuations.

  We present the top manufacturing oil and gas enterprise resource planning software based on the industry’s requirements of features and capabilities to help businesses select the right oil and gas ERP system.

Oil & Gas Challenges & ERP Software Solutions

Oil and gas businesses face daily challenges in managing volatility in production and prices while controlling complex, global operations. 

However, oil and gas ERP systems are helping to transform these pain points into competitive advantages via heightened business intelligence features.

Key Pain Points in Oil & Gas

1. Fluctuating Demand: Managing highly complex global supply chains and logistics involving multiple types of transportation, vast inventories, and fluctuating demand forecasts.
2. Asset Tracking: Tracking, valuing, and accounting for highly specialized equipment, capital assets, spare parts, and materials across far-reaching operations.
3. Planning and Scheduling: Ongoing and rigorous maintenance is required for assets like offshore oil rigs, which have limited window of opportunity and availability.
4. Compliance Issues: Ensuring health, safety, and environmental compliance across assets, processes, and products in ever-changing international regulatory landscapes.
5. Accessing Data: Real-time data is required for agility in exploration, drilling, and production operations while output and commodity processes are volatile.
6. Accounting and Financial Management: Improving margins can be challenging with the variabilities in crude oil and natural gas prices.

How ERP Addresses Them

1. Sophisticated Inventory Optimization: Robust supply chain management and logistics functionality provide end-to-end visibility and coordination across the ecosystem of suppliers, transporters, and customers for improved business processes.
2. Specialized Asset Management: Asset management modules track maintenance schedules, parts inventories, warranties, depreciation costs, and capital equipment valuation like offshore rigs or tanker fleets.
3. Specialized Dashboards: Real-time reporting on output, inventories, and work order status so exploration and production managers can adjust drilling, pumping, and distribution nimbly.
4. Environmental Health and Safety Tools: Compliance reporting, incident tracking, and risk management across assets and locations operating under complex global regulations.
5. Project Management Tools: Enable reliable scheduling and execution of demanding maintenance initiatives such as equipment retrofitting during short seasonal windows.
6. Production Analytics: Specialized data analysis of production volumes, commodity pricing, and operating costs empowers smarter budgeting decisions and margin optimization tactics.

The oil and gas industry faces complex challenges such as demand volatility, asset maintenance, and safety compliance. 

Specialized ERP software can help overcome these issues and turn them into competitive advantages through real-time visibility, optimized planning and business processes, robust analytics, and integrated data.

Top ERP Systems for Oil and Gas

Selecting the right ERP system for the oil and gas industry requires thoroughly evaluating criteria for exploration, production, refining, logistics, and retail fuel distribution processes.

Our selection of ERP software tailored for the oil and gas industry is based on the following criteria:

• Upstream production management: Features such as production revenue accounting, outage tracking, and the drilling workbench are included to manage output fluctuations and optimize exploration operations.
• Midstream logistics coordination: Tools for supply chain integration, inventory optimization, shipment planning, and pipeline management across the ecosystem.
• Downstream fuel retail distribution: Capabilities include fuel price management, loyalty programs, and integration with forecourt controllers for gasoline and diesel sales. Regulatory Compliance and Risk Mitigation

• Environmental health and safety tracking: To adhere to changing global and local regulations across the value chain. Incident reporting, emission monitoring, and compliance dashboards for improved business operations.
• Asset and Equipment Maintenance: Scheduling, parts and inventory management, warranty coverage, and costing functionality tailored to complex capital assets like offshore rigs, refineries, pipelines, and fueling stations.

We recommend the following systems as great options for most companies in this sector:

Cloud ERP Software for Oil & Gas Companies

Cloud ERP software has gained traction in the oil and gas industry in recent years due to its increased flexibility, scalability, cost efficiency, security, and advanced analytics.

Benefits of Cloud ERP implementation in the oil and gas industry include

1. Rapid scalability — Cloud ERP software scales seamlessly to support fluid production volumes, seasonal demand shifts, new locations, and market expansions through a pay-as-you-go model.
2. Global accessibility — Oil and gas supply chain partners, remote equipment, and distributed teams can access a secure cloud ERP from anywhere on any device.
3. Real-time data — Exploration managers, supply partners, and maintenance crews can easily access updated information on output, diction changes, and asset inventory/condition data.
4. Improved resilience — Cloud data centers provide built-in redundancies and failover infrastructure to prevent downtime. System updates push automatically without relying on internal IT resources.
5. Lower upfront costs — There is no need for expensive on-premise servers and hardware that take time to configure, install, and maintain.

These cloud-based platforms offer a range of benefits specifically tailored to meet oil and gas companies’ unique needs. For a complete analysis of cloud ERP systems, please check out our detailed cloud ERP comparison table tailored to the oil and gas industry. Utilize selection filters to narrow down systems by deployment models.

ERP Features & Requirements for Oil and Gas

In oil and gas companies, where production volumes, prices, and demand shift continuously, having an ERP system with the right features and capabilities is crucial.

The following is a breakdown of the essential requirements and features an oil and gas ERP software solution should offer to meet the industry’s unique needs.

1. Exploration & Production Management: Revenue accounting tied to complex royalty agreements, geospatial modeling for well planning, and drilling workbench features to track equipment, materials, and environmental issues.
2. Complex Supply Chain Logistics: Refinery feedstock planning integration with suppliers, fuel station inventory monitoring automated by tank level sensors, and multimodal shipment coordination across sea, land, air, rail, and pipelines.
3. Rig & Asset Maintenance: Maintenance planning aligned with short offshore windows, warranty, inventory, and lifecycle tracking for expensive assets, crew scheduling, and certification management.
4. Regulatory Compliance: Country- and region-specific EHS incident workflow, emissions monitoring, and reporting for NOx, SOx, and VOCs.

Integration with Other Software for the Oil and Gas Industry

The following other software systems would be beneficial integrations with oil and gas ERP software solutions:

1. Geospatial and Geological Data Software: Integrating geological survey and geoscience software with oil and gas ERP software for informed upstream decision-making.
2. Asset Performance Management: Integrating specialized asset management and performance tools with oil and gas ERP software to centralize maintenance and reliability data from oil rigs, pipelines, and refineries.
3. Trading & Risk Management: API integrations with trading platforms for real-time price data to inform supply planning, production decisions, and hedging strategies.
4. Terminal Operations: Interfaces with terminal operating systems at shipping ports, pipelines, storage facilities, and distribution centers to align logistics operations.
5. Retail Fueling Systems: Integration with hardware systems like automatic tank gauges, fuel dispensers, and POS systems at downstream gasoline/diesel retail fueling stations.

Cost of ERP for Oil and Gas Companies

Implementing an oil and gas ERP software platform involves several cost components, including software licensing fees, implementation services, customization, training, support, and ongoing maintenance. 

It is essential to understand ERP implementation costs and how they align with your budget and business objectives.

Factors Affecting Costs

• Software Licensing Fees: ERP software license costs may vary based on vendor, deployment model (cloud-based/on-premises), users, and modules required. Oil and gas companies should assess various pricing models, including perpetual licensing and subscription-based pricing, to select the most cost-effective choice.
• Implementation Services: Project scope, complexity, duration, and resources required can all affect implementation costs. Companies must include implementation services such as project management, configuration, data migration, and testing in their budget to ensure a successful and timely deployment.
• Customization and Integration: Customizing and integrating an ERP system can increase costs for oil and gas companies. To avoid budget overruns, companies should carefully assess their customization and integration needs.
• Training and Change Management: Effective training is crucial for successful ERP implementation and ROI. Comprehensive training programs, user documentation, and change management are essential for maximizing benefits and ensuring user adoption.
• Ongoing Support and Maintenance: ERP software systems require ongoing support and maintenance for smooth operation. Annual maintenance fees, technical support, and ERP software updates should be budgeted for long-term reliability and performance.

Additional Oil & Gas Industry-Specific Pricing Considerations

• Upstream Production Factors: Factors to consider for optimization include the number of exploration and drilling sites needed for capturing output data, integration with geological mapping systems, and custom predictive analytics algorithms based on historical well performance.
• Midstream Logistics Complexity: Managing midstream logistics can be complex when dealing with multiple suppliers, transporters, storage facilities, and distribution channels. Additionally, the degree of shipment planning automation across multilinked global supply chains can add to the logistics process’s complexity.
• Asset Performance Monitoring: Integrating sensors with various equipment such as offshore rigs, pipelines, and pumping stations requires advanced maintenance tools like 3D virtual inspection, cost analysis, and warranty tracking to ensure optimal asset maintenance.
• Geospatial and GIS Integration: Geographic Information Systems (GIS) and geospatial data are integral to many aspects of oil and gas operations, including asset management, land acquisition, and exploration. Integrating GIS data into the ERP system may require specialized expertise and additional data mapping, spatial analysis, and visualization costs.

To learn more about ERP pricing and how it aligns with your business processes, we invite you to explore our in-depth guide to ERP pricing and considerations. This guide offers valuable insights into making informed decisions about your oil and gas ERP software investment.

Oil and Gas ERP Case Studies

Real-world case studies offer valuable insights into how ERP systems have been successfully implemented and utilized within the oil and gas industry. Below, we present a case study showcasing an oil and gas company that has achieved significant benefits through ERP adoption.

An Oil Industry Supplier: An oil industry supplier upgraded from an on-premises Exchange server to Microsoft Dynamics 365 Business Central in Azure to enhance communications, security, scalability, and regulatory compliance. The migration to the Azure cloud optimally positioned the company to advance its infrastructure and better serve customers in the long term.

FAQ Section for Oil & Gas ERP Software Buyers

Below, we address some frequently asked questions to help buyers in the oil and gas sector make informed decisions about ERP adoption when working with ERP vendors.

What are the key features to look for in an ERP system for oil and gas companies?

When evaluating oil and gas ERP systems for the oil and gas industry, key features to consider include robust asset management capabilities, comprehensive supply optimization functionalities, built-in compliance modules for regulatory requirements, advanced project management tools, and integrated analytics and reporting capabilities.

How can ERP systems help oil and gas companies improve regulatory compliance?

Oil and gas ERP systems offer built-in compliance modules with features such as regulatory tracking, audit trails, permit management, and emissions reporting. By automating compliance monitoring, data collection, and reporting processes, ERP systems help oil and gas companies ensure adherence to industry regulations and standards, minimizing the risk of non-compliance penalties and operational disruptions.

What modules should an oil and gas ERP software solution contain?

Look for upstream production management, midstream supply chain functionality, asset maintenance, health and safety tracking, and enterprise financials tailored to the industry’s capital-intensive asset strategies and revenue models.

Is cloud or on-premise ERP software better for the oil and gas industry?

Both cloud and on-premise offer benefits for the oil and gas industry. Cloud ERP software systems enable mobility, rapid scalability, and speed, which suit remote exploration sites, volatile production, and global operations. However, on-premise allows deeper customization for unique oil and gas needs around predictive modeling and equipment integration.

How can ERP software improve the management of remote offshore assets?

Purpose-built modules offer maintenance planning aligned with short operable windows, crew scheduling based on skills/certifications, inventory requirements forecasting, 3D virtual inspections, and workbench tools specifically for offshore production assets and drilling rigs.

What role do ERP systems play in optimizing drilling operations and well management?

ERP systems provide advanced functionalities for optimizing drilling operations and well management, including well planning, rig scheduling, drilling performance monitoring, and reservoir management. By integrating drilling data with production and reservoir engineering data, ERP systems enable oil and gas companies to optimize well performance, maximize production output, and minimize drilling costs.

How do ERP systems support the oil and gas industry’s health, safety, and environmental (HSE) management?

ERP systems include dedicated health, safety, and environmental (HSE) management modules for oil and gas businesses, offering features such as incident reporting, safety inspections, risk assessments, environmental monitoring, and regulatory compliance tracking. By centralizing HSE data and analytics, ERP systems help oil and gas companies proactively identify and mitigate risks, ensure compliance with HSE regulations, and promote a culture of safety and environmental stewardship.

Can ERP systems help oil and gas companies optimize field operations and maintenance activities?

Yes, ERP systems offer functionalities for optimizing field operations and maintenance activities in the oil and gas industry. These include field service management, work order management, asset tracking, and maintenance scheduling. By automating field service processes, optimizing maintenance schedules, and facilitating mobile access to critical data and resources, ERP systems improve field workforce productivity, reduce downtime, and enhance asset reliability.