A tale of two markets
The U.S. is booming, while Canada is slowing. Here’s why oil and gas service companies in both markets want to see the whole picture.
The North American oil and gas exploration and production market operates with a high degree of integration between the United States and Canada. U.S. companies own and operate assets in Canada, while many Canadian companies are active stateside.
When it comes to the tone of the two markets, however, there's now a significant difference. Exploration and production companies in the U.S., and the field service companies that support them, are going gangbusters. Meanwhile, north of the border, the level of drilling activity slowed substantially during 2007. While there's no end in sight to the strong activity in the U.S., Canadian E&P companies see 2008 being among the quietest in years.
Jory Lamb has been busy in recent months meeting with customers and building business software solutions in three distinct markets: Texas, the U. S. Rocky Mountain region and Alberta.
“We’re definitely getting two distinct messages, depending on which side of the border a client is operating on,” says Lamb, President and CEO of VistaVu Solutions. “The U.S. guys are having a hard time keeping up, and the Canadian guys are feeling some pain from the current slowdown. The good news is, in both cases, our FieldVu product can help.”
Powered by SAP Business One, FieldVu lets field service companies manage jobs, labor, costs, equipment and profitability.
In an up market
In speaking with clients and potential clients in the U.S., Lamb hears many of the same concerns expressed.
“When you're running a large number of jobs at one time, it becomes difficult to understand the profitability of each one,” he says. “FieldVu gives oil and gas field service companies the ability to see where they are at all times on the profitability of each project.”
FieldVu also allows companies to monitor and manage functions such as equipment rentals and labor expenses. These functions become all the more important during times of intense activity.
In a down market
With fewer oil and gas wells being drilled in Western Canada, the demand for products and services to support this work has eased off. Several Canadian clients are using FieldVu with two aims in mind.
First, while projects are now fewer in number, the visibility provided by FieldVu is allowing companies to maintain profitability on the projects they have. Second, companies are using this quieter market to gear up for when drilling activity inevitably picks up. Companies are integrating FieldVu with their accounting and payroll packages, and FieldVu’s preventative maintenance and labor certification functions are laying the groundwork for efficient, cost-effective operations in the future.
“When oil and gas service companies are extremely busy, it's important to manage every detail as thoroughly as possible,” says Lamb. “When times are slower, every dollar is important. Companies in three production areas, on both sides of the border, depend on FieldVu to help them see the whole picture.”
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