The oil & gas industry holds many unique challenges. Wellhead costs, turnaround costs, inter-company transfers, inventory valuation, cost allocations, reporting by production unit: all must be understood and fully considered in running a successful operation. Each segment of the industry - up-stream, down-stream and chemicals - also bears its own distinct set of requirements. Meanwhile, regulatory, environmental, Solomon studies, internal corporate requirements all create time-intensive reporting requirements.
ADI Strategies has worked extensively in every oil & gas industry segment. In up-stream, it's important to analyze performance back to the well head. Collecting exploration and production costs and allocating those costs back to the well head is the only way to understand profitability and maximize capital investments. Market prices must be adjusted for transportation and quality differences in order to evaluate operations and make appropriate decisions. Without a business intelligence (BI) solution, this can be a very manually intensive and inaccurate exercise. Implementing BI can reduce resource requirements, increase timeliness and improve accuracy so that management has an accurate picture of operations.
In down-stream, refining operations often focus on fixed expenses. Maintenance, turnaround management, variable costs, evaluating value of capital investments, energy costs, inventory valuation - all have significant impact on the refinery operations. Without a BI solution, it may be hard to understand where additional value generation opportunities may exist. The chemical stream, meanwhile, is focused on variable costs. The chemical industry is very competitive and goes thru long business cycles. Measuring variable costs by unit of finished good produced is paramount to successful operations.
Benefits of ADI's energy industry solutions typically include:
