If you have listened to any of the recent M&A investor calls, you will notice two main themes that management highlights as reasons that make these deals attractive to investors: ESG commitments and cost savings from ‘synergies’. A few examples of these are:
- COP buys CXO: $500 million by 2022
- Cenovus buys Huskey: $457 million by 2021
- PXD buys PE: $325 million in annual savings
While these seem like lofty goals, they are achievable when looking beyond classic cost savings techniques typically used by the oil patch (i.e. G&A or overhead). Lowering LOE’s (Lease Operating Expenses) is one way that E&P’s can cut costs across their entire upstream portfolio. Data Gumbo’s award-winning smart contracts lower LOE’s and save E&P’s millions every year by bringing transactional certainty to each commercial relationship.
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Click here to learn how to save millions per year on LOE's with Data Gumbo's smart contracts
When companies are trying to watch every penny, the armchair quarterback is not even an option. The older management style of being reactive has to change to survive. Andrew Bruce, President & CEO and I were able to sit down and cover the Real-Time Lease Operating Expenses business issues.
In one case study we talked about, the gross annual savings was at an estimated $4.4 million dollars. One thing I can say about Bruce is that he knows numbers, and technology. This is a very cool interview about how the big boys save the real bucks.
"... companies rely on P&L to tell them the score, but by then it's too late to make corrections. A Profit and Loss statement is a trailing indicator...With a Scorecard however, you can change the future". Gino Wickman - Traction.
When people hear the word "blockchain" they either fall to the floor in the fetal position, or jump up and down about the best transactional technology they use. Personally, I am the guy curled up on the floor. When Michael Tanner, 360 Host and Analyst, and myself, had the opportunity to sit down with Andrew Bruce, Founder and CEO, Data Gumbo, we were pleasantly surprised about how he took the complex and turned it into millions of dollars in savings in OpEx.
Just imagine if you are an E&P company and you need to save money right now. You can continue to bleed cash, or look to technology to save money. Andrew talked about the ability to bridge the transactional gap to transactional bliss. Through the GumboNet blockchain technology companies can save millions. Yes that is not a typo. I had to stop Andrew, and back up to verify that my ears had not gone bad. (Even though I am old)
We also cover the Data Gumbo business model, and if I was an Oil & Gas executive looking to save millions, calling Andrew would be the first thing I would do.
About Data Gumbo: Data Gumbo is an award-winning technology company with customers around the world who build, manage and automate their own smart contracts. Data Gumbo's smart contracts offer a new approach to commercial relationships — one that reduces friction to deliver streamlined operations, transactional certainty and cost savings. Every transaction is accurate and certain, touchless and automated, and powered by GumboNet™, the company’s massively interconnected industrial blockchain network. Led by a growing team focused on oil & gas and construction, the company currently has offices in Houston, London and Stavanger, Norway.
