The nation’s midstream is growing at a pace unparalleled for decades. But is the industry ready to tackle such a large number of projects with the speed and efficiency required in a competitive environment?

Company representatives say that a significant pain point is that their organizations lack centralized data management systems. In too many instances, companies involved in this historic midstream buildout undertake projects costing millions, even billions of dollars, with antiquated data-storage systems and administrative tools. The inefficiencies hamper staff and cause organizations to lose money.

These representatives understand that upgrading their companies’ technology provides an opportunity to do more with less. They view it as a chance to seize full advantage of the profit potential from a buildout. Still, some organizations delay, or worse, resist an upgrade.

Timing can be a factor. In the current environment, the midstream has seen its share of mergers and acquisitions. Such business moves can slow an upgrade if one or more impacted companies are technologically behind. Consider, too, that the best time to complete an upgrade is when work is slow. But when work is slow, funding for an upgrade is restricted. This Catch-22 creates fear of derailing projects during an upgrade. Although the ideal time might seem elusive, waiting only compounds problems. Properly executed, an upgrade is achievable with minimal, if any, effect on projects.

Limitations of antiquated systems

Numerous problems arise when midstream companies rely on outdated technology and processes.

Too many companies and their supporting organizations still work from paper records. These records go back many years and are so voluminous that the company has run out of cabinets and space to store them. I recently visited a midstream company gearing up for $1 billion in projects. It keeps an overabundance of paper records in boxes stacked to the ceiling.

This company also maintains hundreds of paper maps, each marked the old-fashioned way: with colored pencils and crayons. They are stored in binders with printouts folded or taped together. Important project details, such as restrictions and contact information, are recorded on sticky notes.

Besides the exorbitant amount of storage space, paper records and maps are an inefficient use of project planners’ and field agents’ time. Few can navigate this system of recordkeeping. Access is difficult.

This company’s situation is not unique. Some companies have implemented corrective measures, short of a technology upgrade. Unfortunately, the steps they have taken can lead to other issues.

In many instances, spreadsheets have replaced paper and email has replaced memorandums, reports and notifications. Both tools, however, come with problems and inefficiencies. Spreadsheets and email tend to create pockets of information and limit access within the organization. Maintaining spreadsheets requires a great deal of staff time.

Spreadsheets are prone to mathematical errors and there is the chance to overwrite and lose changes. Industry representatives tell me they are tired of wading daily through seemingly countless emails and writing and sending messages to individual members of a large project staff.

Brain drain

The prevailing lack of technology is exacerbating the effects of a brain drain within the midstream. At some companies, only a few veteran staff know certain information critical to a project. What happens when those individuals retire or leave for another reason?

For those who remain, it can be a slow process navigating through paper records. Only the experienced employees know where to look and the significance of the information. Worst case for the organization, the information might be lost.

An organization devotes time and resources to ensure the new employees acquire the necessary knowledge and skills as soon as possible. Training new staff on outdated systems, though, can lead to employee fatigue and retention issues. Today’s young professionals want today’s technology. They have little patience for paper records, spreadsheets and email.

Unfortunately, problems do not end there. Outdated systems result in pervasive inconsistency of project information, which in turn leaves staff questioning its accuracy.

Charged with ongoing maintenance of existing pipeline projects or planning new, expensive projects, company representatives discover, oftentimes too late, that these inconsistencies have set progress back weeks, possibly months. To try to avoid this problem, employees build their own recordkeeping systems, which only duplicates work and creates more inconsistencies. Due to concerns over inaccurate recordkeeping, for example, one section of pipe might be reinspected unnecessarily, or a landowner might be contacted several times for permission to step onto his property. These and other examples can result in lost revenue and credibility for the company.

Solutions in technology

While there are plenty of problems and obstacles to overcome, the good news is that the industry is seeking answers. Companies want consistency of information and record-keeping. They want a system that will make their operations fluid. They want automated notifications, reports and management of ongoing payment obligations.

Software advances are addressing industry needs. For organizations considering a technology upgrade, selecting a provider is critical. Companies should involve stakeholders, do the research and learn as much as possible about the technology a provider is offering.

Also, be sure sufficient training is included. Be sure the provider has a proven track record and uses a strategic and methodical approach. Look for solutions that best fit the organization’s needs, both in cost and functionality.

A Web-based system offers several advantages, but it is not for every organization. Companies with a large number of field agents may need to look at mobile and detached applications that provide offline capability for field use.

In addition, Web-based mapping can broaden the use of information that is gathered. Companies needing real-time information and flexibility to add new users should consider a Web-based system. A Web-based central database provides authorized personnel comprehensive information for current and future projects. Reports and dashboards can help in understanding progress, issues and bottlenecks, which can aid decision-making. The central database even supplies an historical perspective, facilitated in large measure through data migration.

Centralizing data

Data migration involves transferring information from various sources and formats into a single software system. The process migrates all of a company’s paper records, maps, photos, JPG files, PDF files, Word files, spreadsheets and other data into a centralized Web database. For those reams of boxed paper records, an optical character recognition machine is useful. It works similarly to a scanner. Stacks of paper records can be fed into the machine, requiring minimal staff time.

Properly accomplished, the data migration extracts data from its original source, corrects errors, reformats it and loads it into one easily accessible location without loss or damage to the original information. Once the data is centralized, project staff can quickly access information and reports, update projects and add new authorized personnel.

With implementation of a central database and a successful data migration, the value of a company’s information increases. A company need no longer be at the mercy of its outdated, disorganized information-storage system.

Now, a company can be virtually paperless. Time-consuming management of spreadsheets will be a thing of the past. Rather than using email to issue each new project notification or report, the software can be programmed to automatically generate these according to the desired schedule and recipients. Staff won’t be compelled to create their own recordkeeping systems. Each project can be streamlined through planning, development, construction and ongoing operational stages.

The capability to access the database through mobile devices greatly increases the efficiency of field agents. Access is possible through detached capability even when connectivity is lost or unreliable. Field agents can input notes of a meeting with a landowner immediately, by typing or voice-to-text. They can measure a right of way with mobile devices and upload photographs from a site, showing any buildings or obstacles to construction. It’s no longer necessary to wait to return to the office before updating the project file.

Operation and maintenance

After a right-of-way agreement has been reached and a pipeline installed, there is a need to manage property encroachments, inspections and repairs. This process can also be streamlined with a Web database. In addition, a schedule of maintenance checks can be uploaded so workflow reminders are issued automatically. With mobile technology, workflows can commence in real time.

Representatives of one midstream company told me of problems associated with spraying properties in its project right of way. Some landowners within the project allow spraying, others do not, while others allow spraying of only certain areas.

Sorting out all those differences is confusing to the contractor but important to individual landowners. Information maintained in the central database keeps it simple. It even provides an audit of completed work, so the contractor does not return to an area that has already been sprayed.

Meeting ongoing rent or lease payments is another project management issue that can be effectively addressed through a centralized Web database. A technology upgrade can streamline this complex process.

Landowner and payment information is uploaded and the system manages and tracks ongoing payments automatically. When parcel ownership changes or a landowner moves, the database can be updated quickly. With such administrative tools as lease management, royalty payment calculator, automatic reminders, payment tracker and scheduler, ongoing payments that once took many days can now be accomplished in minutes.

Another benefit of a central, Web-based system is the ability to broaden the use of information provided by geographical information systems (GIS) mapping. With quick access to tract boundaries, the path of a new project or the impacted area of pipeline designated for restructuring can be uploaded into the database.

Issues related to construction, such as existing land use and utilities, are identified in the GIS color-coded layers. Progress toward right-of-way acquisition can be recorded. These and other advantages make GIS an efficient replacement to the hundreds of paper maps that some midstream companies still maintain.