Emily Clarke

What are Facility Imbalances in the Oil and Gas Industry?

Oil and gas production are integral parts of modern life, and while it may seem like oil and gas availability is a given, there are actually many complicated components involved in balancing resource availability with production. Oil and gas facility imbalances occur when the difference between production and availability grows. This can happen when multiple parties own and operate an oil well, but it can also occur when the output of an oil well is inconsistent over a given period.

Pipeline Imbalances Are a Primary Concern

When you think about oil production, you might think of a constant and steady stream of oil being pumped from the ground. While this scenario is great when things work out this way, oil production is not always steady. There are many facets of oil production, and oil availability may not be consistent.

Oil and gas facility imbalances are often the result of too much or too little oil being available at a time. Oil wells may have differing levels of oil in different spots, and fracking may be necessary to access gas in different parts of a well. To mitigate these imbalances, many facilities plan ahead using sophisticated measuring equipment to determine how much oil is expected to be pumped from a particular well within a specified period.

Stakeholder Need is Also a Concern

When multiple parties own an oil well, the needs of each entity also must be balanced. Because each stakeholder may have different needs at different times, a sudden demand from one entity or a rise in demand from all stakeholders at once could lead to imbalances in oil and gas availability.

Geopolitical Issues Complicate Things

Furthermore, geopolitical influences on oil and gas can complicate things. When a gas producer must make sudden changes to its production schedule based on changing regulations or regional political or legal matters, an imbalance can occur in the availability of resources and the production capacity of an oil and gas facility.

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Emily Clarke is providing info about a single platform for your oil and gas software solutions. You can find her thoughts at oil supply chain software blog.