IM Experts in E&P

Field Economic Forecasting

The Situation

The client was using Palantir as the primary modelling tool for CAPEX-OPEX-Production reporting. The challenge they faced was limited ability within the product to model "What If" scenarios, it only allowed them to store one or more static "baseline" models. These models provided views of the cost structure across all assets but could not provide rapid results when changing variables such as the oil price and asset specific CAPEX allowances. This applied to a number of desired outputs, for instance:

  • How varying the oil price impacted future revenue
  • How different drilling activities would impact future costs and revenue
  • Monthly variance against previous month and market rates.
 
Making changes to the existing modelling product was possible but would take considerable time and effort. The client was therefore making these changes within excel using macros and VB scripting with data drawn from multiple sources including Palantir, PI, Cognos and various other excel workbooks, a process which was prone to errors and required a significant on-going manual overhead.


Our Solution 

Venture designed a solution to replace the existing excel workbooks using data aggregation and integration techniques with a Tibco Spotfire visualisation layer complete with analytical capabilities for "What If" scenario modelling. 

 Monthly Forecast Overview Tablet.png

Home dashboard: Providing 'breakeven analysis' over variable oil barrel prices 

The new Spotfire based dashboards allowed the customer to have different tabs or views of their data. The home dashboard provided them with a summary overview of all forecast CAPEX/OPEX with production revenue forecasts. This was combined with a number of oil price scenarios to begin to form the building blocks of "What If" modelling. This view further allowed them to remove or reduce certain activities or entire assets in order to get a better high level overview and understand the impact on ther future economic outlook.

 

Monthly Forecast Drilling Cost Tablet.png

 Drilling activity: Ability to evaluate and adjust drilling programmes across assets and see impact on financial forecast in real time

A more detailed view was provided of the drilling activity within each asset, including data attributes such as drilling costs and estimated reserve replenishment. The view allowed the customer to visualise, in real time, the relative ROI of the asset drilling programmes with the functionality in-built, allowing them to remove or reduce drilling activity and see its immediate impact on the economic forecasting.

The Benefits

  • Significant improvement in speed of scenario modelling. The client was able to model scenarios with increased ease and efficiency, allowing for monthly decisions to be made in near real time as opposed to waiting many days for the datasets to be integrated into the excel workbooks
  • Increased access to results through varied dashboard views. Our client was able to segment the information presented through the dashboards to different users across the business, ensuring that each relevant stakeholder was viewing the same information, at the same time, which was previously a very difficult undertaking 
  • Re-integration of Spotfire output into Palantir. The output of the models created within Spotfire were able to be exported and re-imported as new baseline within Palantir with ease, ensuring that consistency of data was present across all their systems. 

Arrange a Demo

Get in touch today to find out more about this solution or to arrange a demo with one of our technical specialists .

Call: 0203 141 0500

Email: challenge@venture.co.uk

Client Spotlight

BP
BP

From advisory services and data management through to EIM, Venture has delivered a wide range of Information Management solutions to BP’s upstream business