New IDC Energy Insights Research Reveals Industry Short List for Hydrocarbon Accounting
GREEN / ENERGY / IDC / Thursday, 08 April 2010 08:51
New IDC Energy Insights Research Reveals Industry Short List for Hydrocarbon Accounting

Global Market Trends Driving Oil and Gas Companies to Look to Comprehensive Hydrocarbon Accounting Applications

FRAMINGHAM, MA, April 6, 2010 – According to a new report from IDC Energy Insights, Vendor Assessment: Industry Short List for Hydrocarbon Accounting – Transactions to Field Operations (Document #EI222017), the oil and gas industry's ultimate goal of extracting hydrocarbons as cost effectively as possible is being challenged by an industry framework that can no longer rely upon "easy oil." The new study reveals that the challenges facing the upstream market are driving application rationalization and shifting the role of hydrocarbon accounting and production allocations software from a traditional role as a back-office tool to an important component of operational efficiency and production optimization.

The IDC Energy Insights report evaluates six vendors – Merrick Systems, P2 Energy Solutions, Quorum, SAP, Tieto, and WellPoint Systems – that provide hydrocarbon accounting applications for the oil and gas industry to provide insight into how energy companies are using these applications to meet industry challenges. According to the report, hydrocarbon accounting applications:

  • are being utilized for more than tracking complex owner agreements and managing hydrocarbons from production to sale;
  • are being used to provide significant insight into production operation logistics by determining the quality and quantity of hydrocarbons produced from individual oil and gas wells;
  • support production reporting data that can be employed for production optimization as well as for accurate computation of future reserves and production rates through decline curve analysis.

"The software technology for hydrocarbon accounting has been a critical part of oil and gas operations, but these solutions are now being more tightly integrated with production accounting and financial solutions," said Catherine Madden, senior research analyst, IDC Energy Insights. "The increasing integration of the data with technical, operational, and business systems also allows producers to improve current best practices, which underscores the important role the software needs to play for a company to successfully support its operations."

Oil and gas producers are increasingly focused on maximizing production operation efficiency and production optimization as a mean of addressing the growing global demand for hydrocarbons. Hydrocarbon/production accounting applications are an essential part of the equation for meeting these goals. Hence, oil and gas companies are increasingly interested in applications that are tightly integrated with production accounting and financial solutions, and which feed business intelligence applications that monitor field and well production.

"The pursuit of natural gas and increased regulation are just some factors driving oil and gas companies to look for applications that have a more comprehensive view," said Madden.

The analysis provided in the study is intended to help executives arrive at a short list of IT suppliers in the hydrocarbon accounting area that best address the needs of the business. Each technology provider is assessed based on how well its product fits market needs and provides confidence in ownership.

For additional information about this study, or to arrange a one-on-one briefing with an IDC Energy Insights analyst, please contact Sarah Murray at 781-794-3214 or sarahbethmurray@gmail.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarahbethmurray@gmail.com.

About IDC Energy Insights

IDC Energy Insights provides research-based advisory and consulting services focused on market and technology developments in the energy and utility industries. Staffed by senior analysts with decades of industry experience, IDC Energy Insights covers both the utility and oil & gas segments, providing independent, timely, and relevant analysis focused on key business and technology issues. IDC Energy Insights serves a diverse and growing global client base, including electric, gas and water utilities, IT suppliers, independent power producers, retail energy providers, oil and gas companies, equipment manufacturers, government agencies, financial institutions, and professional services firms. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc-ei.com, email info@idc-ei.com, or call 508-935-4400.

Contact For more information, contact:

Sandra Collins

Sarah Murray

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Last Updated on Thursday, 08 April 2010 08:52