Why Off-the-Shelf SaaS Doesn’t Work for Oil & Energy Projects — And What to Do Instead
In the U.S., the Oil & Energy industry is like navigating a maze, it is super complex and tightly regulated. The project management process is tough, and teams have to juggle massive distances, work with legacy systems, and deal with all sorts of safety and environmental rules. However, the industry is growing nonetheless. Thus, according to GlobeNewswire, the global Oil & Gas Data Management market was valued at approximately $19.0 billion in 2023 and is expected to grow to $60.3 billion by 2030. This expansion of the oil and energy sector is fueled by several key factors:
- the growing adoption of digital solutions for energy companies,
- a surge in demand for real-time data analytics,
- and continuous advancements in cloud computing and artificial intelligence (AI) technologies.
To make things run smoother and to be able to keep up with the demand, a lot of companies turn to SaaS project management tools, hoping to fix the issues. But here’s the catch: choosing off-the-shelf solutions may fail your plans. Such software-as-a-Service (SaaS) systems can cause inefficiencies, security headaches, and a ballooning budget. So, let’s break down why these tools struggle in the oil and energy world and how custom software for the oil industry can actually be the game changer.
The Problem: Why Off-the-Shelf SaaS Doesn’t Work for Oil & Energy Projects
While ready-made oilfield project management tools have proven effective in many industries, they often fall short in the highly specialized world of oil and energy. This sector has unique operational, regulatory, and technological requirements that generic SaaS tools simply weren’t designed to handle. As a result, many businesses can encounter some issues.
1. One-Size-Fits-All Software Lacks Industry-Specific Customization
One of the main issues is the complexity of oil and gas operations. The companies usually deal with vast, geographically dispersed teams, remote locations, and systems that often span decades. Off-the-shelf SaaS solutions typically aren’t built to cater to these complexities, but more appropriate for industries with far simpler workflows. Trying to adapt them to the oil and gas digital transformation can lead to significant inefficiencies. They may lack the specialized features needed to manage various critical aspects of the industry, like risk assessment, downtime tracking, asset-intensive scheduling, and regulatory compliance (OSHA, EPA, NERC, FERC).
What do our clients say?
As one of our clients put it, “It feels like half of my time I spend trying to fix issues with redundant data. It’s not exactly something I enjoy dealing with.”
These frustrations arise because the software doesn’t support the complexities of their work. Custom energy project management software, however, can be tailored to address the specific challenges our clients face, allowing them to streamline their operations and avoid inefficiencies that come with generic tools.
Alternative:
In this case, custom software for the oil and gas industry can be built from the ground up, fully aligned with the unique workflows, compliance requirements, and operational complexities of oil and energy projects.
2. Poor Integration with Legacy Systems and Field Equipment
The struggle of integrating new software with legacy systems is something many of our clients in the oil and energy sector face regularly. Their operations often rely on systems that have been in place for decades, and getting new tools to work with these old platforms can feel like trying to fit a square peg into a round hole.
The oil and energy sector often relies on older technologies, such as SCADA (Supervisory Control and Data Acquisition), ERP (Enterprise Resource Planning), and GIS (Geographic Information Systems), which are critical for day-to-day operations. Off-the-shelf SaaS solutions are often not flexible enough to integrate seamlessly with these legacy systems, causing siloed data, workflow disruptions, and delays in decision-making. As a result, companies often end up struggling with a whole set of enterprise SaaS limitations.
What do our clients say?
One of our customers described the issue this way: “We’re constantly re-entering the same data into multiple systems, and it’s a mess. It’s hard to get things done when the data doesn’t flow properly.” The result is manual workarounds, inefficiencies, and a higher risk of errors.
Alternative:
Custom software for the oil industry offers the flexibility to integrate seamlessly with the outdated existing systems and field equipment, helping our clients to maintain smoother workflows, reduce data silos, and improve overall operational efficiency. It’s a good way of allowing for better operations in case there are no resources for the development of a brand new system from scratch.
Read Also Optimizing Field Operations: The Role of Workforce Management Systems in Energy and Utilities
3. Regulations and Compliance Risks with Cloud Storage
Additionally, the regulatory landscape in oil and energy is far more stringent than in most other sectors. Off-the-shelf SaaS solutions often fail to meet the strict regulatory requirements. With data being stored in the cloud, the risks of falling out of compliance or experiencing security breaches are higher than ever.
Energy companies must comply with numerous federal and state regulations, such as OSHA standards, EPA guidelines, and safety mandates from agencies like NERC and FERC. With the ready-made solutions for the energy sector, it becomes hard to stay on the right side of the law. Eventually, many of our customers faced the need to manually incorporate these requirements into their workflows.
What do our clients say?
As one customer put it, “It’s crazy how many times we end up re-entering the same data into different forms or systems. You would think this would be an easy fix, but it’s a nightmare.” This repetitive process opens up the risk for errors, which can have serious implications when it comes to regulatory compliance and security.
Alternative:
By opting for oil and gas technology solutions, our clients gained more control over their data security and can now ensure that their systems are designed specifically to meet the compliance standards required in the oil and gas sector. Also, a self-hosted or hybrid system offers full control over data storage, encryption, and user access, ensuring the highest levels of security and compliance.
Continue reading to learn about other issues: https://xbsoftware.com/blog/custom-software-vs-off-the-shelf-saas-for-oil-and-gas-projects/
