BI & Analytics in Oil & Gas Downstream Sector

Submitted By: Group 2

Aarya Dashpute 20131002Akhil Harikumar 20131003Himanshi Singh 20131012Himanshu Khatri 20131013Miraj Kumar 20131022Nirav Modh20131029Rakshit Maheshwari 20131039Ruchininder Sharma 20131044Sunjeet Biswal 20131053

Oil Value Chain

Gas Value Chain

Use of BI in each stage of Value Chain

People working at an oil and gas company is focused on Data

• Collecting• Storing• Analyzing• Interpreting • Consuming

Oil and Gas focus on using data to gain • Operational efficiencies• Analyze core assets and extract value.

Case Study…

A recent study by Schlumberger and CDA called ‘The Business Value Case for Data Management’ suggests that,

• “all oil company personnel should carefully review their current data management. In most companies there are opportunities to . . . significantly increase the total value an organization generates.”

The main challenges faced by downstream sector

• Business Joint Ventures,

• Global Refining Capacity,

• Corporate communication,

• Distribution Activities for Oil Products,

• Crude Supply Mechanism,

• Health, Safety and Environmental Security,

• Manpower and Economy,

• Refinery incapability and the Need for Expansion,

• Pricing,

• The cost of Services.

Need of BIDM in Downstream OIL and GAS

• To understand the consumer and for efficient CRM

• Integrate and synthesize diverse data sources into a unified whole and supports decision making in near real time

• Provides timely access to critical information

• Speed delivery• Cost competitiveness

• Improve Forecasting

• Helps convenience stores maximize the profit from their inventory

• Make information available to all levels of the enterprise, from senior management to the knowledge worker

Implementing BI & Analytic solutions in the value chain of downstream

• In the downstream cost control is key to success.

• Effective data management and better applications of analytics can drive significant improvements in efficiencies and business performance.

• With operators producing volumes of data from assets and operations throughout the downstream, improving the way this data is managed and analyzed represents a significant opportunity to increase profitability, return on assets, & improving the company’s bottom line.

• Analytics delivers insight from sensor signals, enabling monitoring of assets and output in real time.

• Holistically analytics provides greater visibility of the data throughout the cycle—from planning and scheduling of production to the supply chain to demand planning, marketing and trading.

Analytics for refining & petrochemical operations• Refining has been one of the most commercially challenging parts of the

energy value chain.

• The Hungarian Oil & Gas Company Plc implemented the full SAP Business Objects suite, including configuring users and creating key performance indicators, dashboards and additional reports in its refinery.

• More than 200 key performance indicators were built into the system, along with 19 dashboards and multiple reports, which automated laborious activities.

• Managers were able to gain access to up-to-the-minute information and had the time to make business decisions to adapt to fast-changing markets

Analytics for asset intensive operations

• Reducing downtime and improving recovery from unplanned events is essential. energy companies rely on asset maintenance analytics to improve margins.

• To realize additional gains, operations managers combines asset-maintenance analysis with improvements in associated processes. Knowledge of the analytics of rotating equipment, communicated to work crews and to those who manage equipment and spare parts.

• Planning and scheduling activities, along with predictive asset maintenance, helps to improve rates of equipment utilization.

• Performance analytics is applied to identify the deviation between planed and actual results, thereby spurring new thinking on ways to improve performance.

Efficient use of BI results….

Analytics for logistics and supply chain

• The increase in hydrocarbon shrinkage, through theft and leakage, is a problem that can be identified and tracked through logistics analytics.

• Monitoring devices on trucks collect a steady stream of data that can be used to determine when deliveries run off course.

• Potential gains from supply chain optimization can be large, particularly for national oil companies with large territories, as well as many pipelines and depots. The underlying data, software and analytics tools provides opportunities for improvement.

• BI & Analytics allow end-to-end integration from demand side to through production, into commercial channels enabling monitoring of entire downstream value chain.

Product-to-Market System Operation with use of Analytics

Analytics for marketing

• Outdated technical infrastructure is unable to respond today’s digitally-enabled consumers. Highly connected consumers are better informed, price driven and hard to retain because competitive information is mere clicks away for them.

• Electronic payment mechanisms provide a new digital source of data and companies have started using that data to get to know customers better.

• Using analytics to aggregate and analyze social media postings helps businesses to understand customers better, thereby providing insight before retail decisions are made.

• By running analytics on thousands of retail sites, mining the data for insights into customers and envisioning new services companies are generating additional revenue streams.

Analytics for trading and risk management

• With highly regulated markets, companies have begun modeling, forecasting regulatory changes and gaining real-time visibility into the global commodities market.

• With greater insight into commodity markets, energy companies can manage accordingly their supply chains, for example, leveraging a fleet of energy vessels to determine if they hold onto supplies or route them to another destination. This example shows how analytics can be used across multiple processes, thereby improving business outcomes in multiple functions

Services by TCS in O&G Downstream sector

• Integrated Refinery Performance Management System (IRPMS) helps provide end-to-end process visibility across the value chain. Solution uses a balanced score-card approach to provide a global view of the local operations and offers a single version of truth for better transparency and near real-time decision-making.

• Emission Management System helps refineries measure, monitor and control their emissions in the most efficient way, thus helping them reduce costs and sustain margins

• MES COTS Product Selection and Implementation helps refineries select and implement industry-leading tools, by analyzing the business processes, complexity of operations and the external business environment of the refinery.

• Retail Outlet Automation Solutions help you improve customer satisfaction and service quality and reduce delivery times and fuel adulteration.

• Terminal Automation-based Solution helps in the efficient operation of the terminals, ensuring that the inventory is held optimally as well as customer deliveries are managed in optimum time.

BI and Analytics related Products and Services in the O&G Downstream Value Chain

BI & Analytics in O&G Industry

Ex: BPCL ERP Solution (SAP NetWeaver Portal)

Benefits to BPCL

• Intranet connectivity to all users

• Established corporate database of the company

• Introduced Query by mail system for users to extract business transactions

• Achieved 30% saving on long distance communication

• Biggest benefit of Well managed inventory.

• SAP R/3 helped BPCL to successfully launch its e-biz initiatives

• Allow I&C customers track orders status online.

• Successfully introduced Petr ocard in 1999-00 with around 2.5 Lac customers and more than 20,000 daily transactions.

• Introduced Fleet card for transport companies

• Integrated manufacturing execution system of its refinery with the system.

• Introduce online payment system to for credit card payments.

• Surveillance

• Monitoring

• Upstream

• Cross-Stream

• Downstream

• Reporting

Business Process Automation • Geospatial• Asset Management• Risk Management• Collaboration and Project Management• Data Analytics and Reporting• Mobile ready solutions (cross platform/OS)

• OpenTAS(optimizes and automizes the logistic and administrative processes)

• SAP OGSD (SAP Oil & Gas Secondary Distribution)

• RFNO (Retail Fuel Network Operations)

• CPR (Continuous Product Replenishment)

• SRD (Sales Region Designer)

• IDM (Integrated Dispatch Management)

• OpenTAS TFM (Tank Farm Management)

• ADD ON – Refill Me! (APP)

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• https://www.youtube.com/watch?v=xsKV7g5rKGU&list=UUkCcKNqiyTDIxi2IL5fY1cg

• https://www.youtube.com/watch?v=1-ZCSjtcVdM

Lísta de Cliéntes

#Clientele list of most of these companies are not disclosed owing to the contract clause under NDA (Non Disclosure Agreement).

Reference

• https://www.youtube.com/watch?v=xsKV7g5rKGU&list=UUkCcKNqiyTDIxi2IL5fY1cg

• https://www.youtube.com/watch?v=1-ZCSjtcVdM

• http://www.oilgasmonitor.com/better-analytics-equals-better-bottom-line-energy-companies/6936/

• http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Digitizing-Energy-Analytics-Powered-Performance.pdf

• http://www.epageflip.net/t/27059

• http://www.wipro.com/documents/revolutionizing_the_downstream_supply_chain.pdf

• http://globalenergy.pr.co/65678-challenges-and-solutions-in-an-upstream-and-downstream-oil-and-gas-operation