Tag Archives: Performance Management

What is the primary application of BI in oil and gas companies?

Business intelligence (BI) is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. These days to run a competitive business one needs to manage its supply and demand very effectively. Some of the primary goals have been to shorten the time required to create reports and analyses, improve the accuracy of information and create a single reporting repository. BI Performance Management Solutions help organizations to identify and interpret business information to gain a better view of, and control over the key drivers of high performance for Upstream, Midstream and Downstream.

BI Solutions address three different levels of requirements;
• Strategic – Such as optimizing the locations and sizes, partnering with distributors and customers
• Tactical – production, transportation and inventory decisions
• Operational – daily production, source planning, inbound/outbound planning, production-to-supply level planning

As Enterprise / Solution Architect, we design BI solutions to help oil and gas companies to consolidate operations, monitor the current progress, forecast the future very effectively and cut costs. Oil and gas products are commodities and competitive based on price. This makes the industry cost-conscious and highly dependent upon the price of commodity such as crude oil.

The most common application areas for BI have been to provide daily, monthly, quarterly and yearly financial reports and support business operations with a special focus on ERP. For example, BI could provide significant value for areas such as distribution network configuration, distribution strategy, trade-offs in logistic activities, inventory management and cash flow management (Supply Chain Domain). Some the KPI(s) of Supply Chain which might be considered for Dashboard / Scorecard are; Inventory turns, Manufacturing Metrics, percentage of units sold under a specific period, percentage of total stock, etc. Some KPI’s related to oil and gas in general that might be of interest are; Meters drilled per day, drilling costs and quarterly exploration expenditure, strategic zones held under exploration license, percentage of market share of exploration expenditure, etc.