07 Feb Oil and Gas Compliance: 3 Strategies to Positively Impact Your Bottom Line
Oil and Gas Compliance: 3 Strategies to Positively Impact Your Bottom Line
If you do it wrong, oil and gas compliance can take a huge chunk of cash out of your pocket. The amount of wasted man hours and consulting fees can quickly rise into the thousands – even hundreds of thousands – when you don’t follow proper regulation and compliance protocol.
There are a few critical things you can do to avoid these headaches.
Let’s look at a few effective oil and gas compliance strategies you can use to help mitigate risk and ensure you are always 100% compliant.
#1 Initiate a Quality Assurance/Control Process
When you operate a well, you are required to submit supplemental information to Regulators about that asset. You might have kept your Regulatory information up to date, but is it compliant?
Inaccurate or incomplete data costs companies millions each year. Often times, avoiding errors is as simple as getting proof readers. When you compose any document, it can be hard to see typos right in front of you. This is especially true when you’re dealing with Regulatory information.
Get a second set of eyes on everything before you send it off. Proper checks prior to submission will save you a wealth of time and money. The last thing you want is to get hit with a non-compliance flag and face an Audit.
You’re good at your job, that’s why your company hired you. But, even Tiger Woods needs a coach. Get a second person in place to review all information against current regulations.
Thorough and steadfast business strategies are the best way to remain compliant.
#2 Oil and Gas Compliance Audits: Take a Pro-Active Approach
Audits are intimidating. Bringing in outsiders to judge your work is unpleasant in any role. However, the amount of stress and wasted time you can avoid for a few hours of discomfort makes it a true win-win.
Stay ahead of the game. Get quality processes in place and fully-functioning long before someone comes along to raise the red flag.
We can’t overstate the importance of efficient and accurate file systems either. Oilmen like to “shoot from the hip”. That’s a great strength when you are negotiating acreage deals, but it’s a liability when it comes to compliance. Put rigorous reporting mechanisms in every place Regulators keep an eye on your business. Finally, train your employees. And then train them again. And keep training them.
Oil and gas compliance success is not about one big thing. It’s the 1,0001 little things that can save you hundreds of hours and the pain of an audit.
#3 Identify Separate Processes for Regulatory and Compliance
In the eyes of the government, regulations and compliance are two separate issues. The sooner you address this, the easier it is to speak their language. Tackling each issue on its own terms allows you to take an efficient approach to meeting government standards.
Initiate a risk management protocol for both compliance and regulation to make your life infinitely easier. You will save time managing records, maintaining files, and answering questions in the unfortunate event of an audit.
Successfully implementing rigorous regulatory compliance controls can be a challenge. If you don’t have the right culture, it can be a serious uphill battle. But, when you consider the pain and money involved in doing it wrong, it is a noble and necessary battle.
When you put a strong quality assurance/control process in place, get proactive, train your employees, and speak the regulatory and compliance language of government, you will win every time.