Adoption of standards in today's business ecology is a strategic decision. The strategic need for E&P industry standards in the area of integration of business processes and information sharing was the implicit underpinning of the formation of Petrotechnical Open Software Corporation (POSC) in 1990. The business drivers are low oil prices, increasing costs and risks, lower margins, and increasing complexity. The oil industry responded by focusing on core business, consolidation, risk management, collaboration with partners, productivity, reducing costs, improving reservoir performance, and globalization. The use of standards allows for the sharing of data and information across different groups over the life cycle of an asset. Industry standards improve the flow and quality of information throughout an E&P organization; reduce time, cost and risk of solutions; enable new business practices and new relationships between suppliers and consumers. Standards allow better decisions due to improved information resulting from better access to complete data and finally, dramatic improvement in bottom line results (reduce cost and time). Cost savings of 25% are targeted; time savings of 40% have been noted. Improved margins (￡/BOE) are being realised by simultaneously decreasing costs (￡) and increasing value (BOE).
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