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TRANSCRIPT
Diagnostic Analytics Tools to Identify Opportunities
PASC Education Day, May 15th, 2014
Presentation Overview
Introduction to VISAGE
Production Trends in the WCSB
What challenges do Petroleum Producers face?
Why analytics are so important to cash flow
How to structure your Diagnostic Workflows
Quantify your analysis with “Diagnostic Measures”
Applying your Diagnostic Workflows to
Production Performance
Financial Performance
Performance to Plan/Forecast
Introduction to VISAGE
VISAGE was founded 9 years ago
Niche Oil& Gas BI Solution focused on Interactive
Visual Analytics
We connect to any data source (proprietary or vendor data
… e.g. public data, frac data etc.)
Our clients are E&P from start up to >150,000 BOE/day
Reserves Evaluation firms
Banks, Research Groups
We’re in the business of making sense of data
Production Trends in the WCSB
Production Trends in the WCSB
Production Trends in the WCSB
Production Trends in the WCSB
McMurray
Production Trends in the WCSB
Production Trends in the WCSB
Oil Price Fluctuations (Last 10 years)
Oil Price Fluctuations (Last year)
Gas Price Fluctuations (Last 10 years)
Gas Price Fluctuations (Last year)
What challenges do Petroleum Producers face?
Low Gas price, Oil price fluctuations
Wells are more expensive to drill
Well Count per Engineer is higher
Strive for growth with less resources
Predictable cash flow
Too many spreadsheets
How can they face these challenges?
You can’t look at everything every day, but
you can quickly identify the greatest
opportunities by using tools like visual
analytics.
Analytics Are Important to Cash Flow
Production Performance (daily surveillance)
reduce downtime impacts on production
identify, prioritize and act quickly
Financial Performance (monthly surveillance)
understand & minimize Operating Expenses
ensure Net Operating Income is optimized
Performance to Plan (constant surveillance)
minimize reserve write-downs early
ensure cash flow is available to support upcoming activities
How to Structure Your Diagnostic Workflows
1) Identify & Prioritize Categorize to help you understand the opportunities
Focus on the opportunities with the biggest impact
2) Inform & Assess What is the cause? …. Can I do anything about this?
3) Investigate Support any decision/actions with the necessary detail
Quantify your analysis with “Diagnostic Measures”
Example: Production & Downtime Hours
without “Diagnostic Measures” there is limited insight
Quantify your analysis with “Diagnostic Measures”
Example: Lost Production = Diagnostic Measure
The production impact of downtime is now “quantified”
Lost
Production
Production
Example 1: Production Performance
“Diagnostic Measure” used in selection criteria
Example 1: Production Performance
Categorize to help you understand, identify & prioritize
Example 1: Production Performance
Identify & prioritize
Example 1: Production Performance
Inform and Assess
Example 1: Production Performance
Investigate
Example 2: Financial Performance
Categorization would help
Example 2: Financial Performance
Identify & prioritize
Example 2: Financial Performance
Inform and Assess
Example 2: Financial Performance
Investigate
Example 3: Performance to Plan
Identify & prioritize
Example 3: Performance to Plan
Inform and Assess
Example 3: Performance to Plan
Investigate
Other Examples …
Royalty as a % of Revenue
Variations in Realized Oil Price
Other Examples
- Shrinkage
- Liquid yield
- Sales Estimation accuracy
- AFE to Actual
- Gas Processing Fees
- No Revenue but has Opex
- Well Servicing vs Netback
- Transportation
…suggestions anyone?
Presentation Summary
Introduction to VISAGE
Production Trends in the WCSB
What challenges do Petroleum Producers face?
Why analytics are so important to cash flow
How to structure your diagnostic workflows
Quantify your analysis with “Diagnostic Measures”
Applying your diagnostic workflows to
Production Performance
Financial Performance
Performance to Plan/Forecast
Other examples
Thank you!
- PASC for inviting me
- IHS (for the Information Hub access)
- GLJ (for access to their price data)
