Rental Gas Compression
M2M Helps Texas Company Cut Costs 30 Percent—Twice!
A Texas-based company achieved back-to-back 30 percent reductions in operating costs by utilizing M2M technology and services to gather and analyze the data generated by its equipment.
According to Matt Begler, Global sales manager for M2M Data Corporation, the Texas-based company approached M2M about a decade ago with an interest in digitizing its fleet and implementing a telematics solution to improve efficiency.
“At the time, every technician was responsible for visiting 10 natural gas compressors a day,” Begler said. “They only found out about issues when they arrived on site or when the owner-operator alerted them to a problem. It was an entirely reactive way of conducting business.”
Proactive Approach Leads to First 30 Percent Reduction
The rental company implemented M2M’s Remote Monitoring Service across its fleet. This remote-monitoring system collects and analyzes pressure, temperature and fluid level data—as well as downtime events—from every compressor. Each morning, it generates a report alerting technicians to the status of their assigned units.
Rather than visiting every compressor every day, technicians now only need to travel to those sites requiring service. That allowed the company to double the number of compressors assigned to each technician—resulting in a 30 percent reduction in operating costs.
“Instead of one technician being responsible for 10 assets, that same technician can now manage 20 assets, while providing the same or better service to customers,” Begler said. “Because technicians know in advance what’s happening with the units they visit, they’re able to respond to downtime issues more quickly.”
Expert Analysis Generates Second 30 Percent Reduction
Next, the company implemented a control room strategy—establishing dispatch centers in Houston and Midland, Texas, where subject matter experts oversee the entire fleet. These highly trained technicians evaluate the data gathered from the compressors, diagnose potential issues, and recommend solutions to technicians in the field.
“Many of the field technicians are new to the business, and they don’t always know the best way to respond to the data they receive,” Begler said. “By pulling some of its expert technicians into these dispatching centers, the company can provide better guidance to the field. They can dispatch technicians to the right place with the right parts before a mechanical problem occurs.”
This approach again led to an improvement in the company’s technician-to-compressor ratio—one individual is now responsible for 30 units—and another 30 percent operating cost reduction.
Back-Office Integration May Drive Third 30 Percent Reduction
Today, the company is expanding its use of M2M Remote Monitoring Service by ensuring that remote-monitoring data interacts with back-office systems—everything from parts inventory and preventive maintenance to GPS vehicle tracking.
“They’re using the system to create automated service tickets, schedule preventive maintenance work based on actual run hours and make better decisions about inventory and parts storage,” Begler said. “Another benefit is the ability to better predict when a downtime event may occur, so they can take action before it becomes a bigger problem.”
By continuing to leverage M2M services across its business, the company hopes to achieve an additional 30% reduction in operating costs.
Starting the Cost-Reduction Journey
In addition to Remote Monitoring Service, a variety of hardware and software offerings are available to help oil and gas customers take advantage of the data generated by today’s equipment. Begler encourages companies to start simply by getting their fleets connected.
“You don’t have to do everything at once, but when you begin changing your day-to-day business practices, you’ll begin to see the value,” he said. “It’s a journey, and M2M is with you on that journey. We’ll work with you to apply the appropriate technology to help achieve the gains you’re looking for in your business. The results can be significant.”