The Hidden Costs of Information Chaos in Oil and Gas Operations

Properly managing information is all about mitigating business risk. Poor document control doesn't stay confined to job books; it infiltrates every level of an organization, causing costly inefficiencies, compliance risks, and operational delays.

Oil and gas organizations, specifically, face severe information management challenges. Documentation must be current and accurate for proper project and operational execution, while manual tracking systems falter under large-scale, complex environments. For operations leaders watching these struggles unfold daily, the warning signs are clear: proper control of documents must occur for an organization to mitigate operational and legal risk. Behind every delayed project approval and missing revision lies a growing cost that manual solutions don't address.

Direct Costs

The average employee spends around 1.8 hoursper daysearching for documents.

Broken down for a typical 50-person engineering team that's:

• 90 hours per day searching for information
• $5,490 dailyin wasted time
• $1.43million per year in lost productivity

Indirect Costs

Beyond the quantifiable losses, information chaos can also have a more nuanced impact:

• Missed opportunities when delayed decisions cause lost contracts
• Decreased team morale from information inefficiencies
• Higher turnover rates among key technical staff
• Damaged relationships with contractors and stakeholders

The staggering cost of poor document control extends far beyond the immediate financial impact. It can create a ripple effect that undermines both productivity and innovation.

Reality Check

An outdated or missing document can spark a domino effect-delays, setbacks, and costly rework. Imagine a routine equipment inspection where an outdated drawing is referenced. What begins as a misalignment rapidly snowballs: work halts, operators scramble, management is alerted, and suddenly you're facing hours or even days of unneeded interruption-all because of poor information. In fact, a recent Gartnerstudy found that 47% of employees struggle to find the information or data needed to effectively perform their jobs, a problem that can impact cost.

The Two Faces of Document Control

Documents are controlled to mitigate risk and create business efficiency. The impact of poor information management manifests across both operational disruptions and legal vulnerabilities. Identifying these impacts before they occur is key to risk mitigation.

1. Operational Impact

Operational impact involves disruptions that hinder production, slow down decision-making, and escalate expenses. Resolving these challenges enhances efficiency, reliability, and safety.

Project Phase Disconnects
Documents scattered across multiple vendors can disrupt project phases, wasting time and delaying critical milestones.

Decision-Making Delays
When information is inaccurate or outdated, decision making slows or becomes inaccurate. This introduces risk across the business.

Quality and Revision Cycles
Projects built on flawed specifications require extensive rework, draining resources and extending timelines. Each revision cycle multiplies labor costs while eroding team confidence.

Safety Implications
Relying on incorrect information risks equipment failures and compliance violations.

CLIENT SUCCESS STORY:

CTG delivers robust Information Management and Document Control 



A leading oil and gas company was using outdated spreadsheets and folders. CTG helped them migrate from Documentum to Omega 365, ensuring data management and streamlined workflows. CTG also created a Power BI dashboard that displayed real-time insights on information accessed and document status as well as provided a dedicated Project Information Manager who helped simplify communication resulting in efficient operations, improved compliance, and enhanced project execution.  

2. Legal Consequences

CTG's approach to information management and document control reflects how complex and highly regulated environments can cause teams to rush in gathering, locating, and verifying documentation that should be readily available. This reactive approach can expose organizations to significant compliance risks, potential penalties, fines, and legal liabilities.

Our document control processes and systems save organizations hundreds of thousands in legal discovery costs. Furthermore, working with current, consistently revised document versions will lead to compliance when maintaining legally mandated information such as permits, safety procedures, and operational procedures. Organizations may face additional scrutiny and penalties if they inadvertently dispose of documents needed for ongoing litigation or regulatory compliance.

How We Differ from Traditional Solutions

Information management chaos persists because conventional solutions weren't designed for today's complex operations. Shared drives and basic document management systems crack under the pressure of:

• Multi-stage approval workflows involving dozens of stakeholders
• Complex regulatory compliance requirements
• Manual tracking of multiple spreadsheets and emails
• Unstructured workflows, making version control chaotic
• Real-time collaboration across multiple locations
• Integration requirements with existing operational systems

Our approach helps clients handle modern volume, complexity, and speed requirements. These systemic challenges demand a fundamental rethinking of how organizations structure and manage their critical documentation with processes, teams, and solutions that can scale and adapt to today's dynamic operational environment.

We focus specifically on addressing potential problem areas for oil and gas clients through six foundational principles:

1. We establish a definitive source for one, accurate master document.
2. We ensure your master documents are classified for appropriate control.
3. We make information accessible; readily available to the intended audience for the intended purpose.
4. We ensure master documents are validated and updated when changes occur.
5. We preserve only documents that provide business value, simplifying the environment.
6. We manage the "convenience" copies that can create confusion when searching for the most relevant information.

A Clear Path to Document Control Mastery

CTG's modern Information Management and Document Control Solutionscan transform how your organization handles critical documentation. We can help you maximize your existing investments or guide you toward more specialized solutions that better fit your operations. Discover how modern, integrated information systems pay for themselves. Schedule a consultation with us today.