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Energy Processing Canada (May June 2015)
2
The Calgary Flames faced the Anaheim Ducks in the second round of the playoffs with the odds stacked against them: less talent, less experience, and physically smaller. Despite this, the Flames performed respectably, and with a few more favourable bounces, there may have been a sixth game. Energy producers and midstreamers have their own odds stacked against them: low commodity prices, restricted ac- cess to world markets, and expectations from shareholders to perform financially. Imagine if the Flames management had a game simulation model which enabled them to enter the characteristics of each player, the rules of play, and the goal of winning the Stan- ley Cup. With this model they could run thousands of game scenarios and identify which combination of players and ice time allocation, which would provide the greatest chance of collecting Lord Stanley’s prize. In essence, they would be able to determine the optimal performance with their given assets. Now imagine if oil and gas executives and managers had ac- cess to a similar tool to optimize their assets. Enter Stream Systems, an Alberta owned and operated com- pany, which provides an innovative way for energy companies to run their business. Stream builds simulation models by working together with producers and midstreamers in captur- ing facility and equipment constraints, adding the operating parameters, and finally, overlaying the business rules. This model enables end-users to run thousands of operating sce- narios and identify which particular combination of assets and their allocation, which will provide the greatest opportunity of maximizing their return on investment. “Stream enables you to identify, assess, and reduce your system bottlenecks by providing a planning and optimizing toolkit which can be tailored to your oil and gas assets,” said CEO Dumitru Cernelev. Birgit Juergensen, VP of Operations, added, “this toolkit assists you in managing operating costs and increasing both physical and financial throughput. Our solutions bridge engi- neering, operations, and financial aspects of your business.” Stream recently completed a terminal optimization project for a major international midstreamer. With Stream under- standing their physical and operational constraints and their business imperative they were able to create a business simulation model that identified a capital savings opportunity of over $80 million. This enabled the midstreamer to meet their return-on-asset threshold for project approval. There were knock-on operational savings in the millions of dollars as a result of improved product quality, which could garner a premier price. Stream is currently working on another project with this customer. Paul Murphy, Director of Sales, said, “repeat business is the ultimate indication that we’ve satisfied the customer’s expectations.” Asset Optimization: It ’ s just a game Stream Systems L-R: The Stream team - Allan Chegus, Dumitru Cernelev, Thomas Xi, Paul Murphy, Alvaro Gil, Birgit Juergensen, and Debra Golding. Missing is Colleen North. 20 WWW.NORTHERNSTAR.AB.CA PROFILE
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Transcript of Energy Processing Canada (May June 2015)
The Calgary Flames faced the Anaheim Ducks in the second round of the playoffs with the odds stacked against them: less talent, less experience, and physically smaller. Despite this, the Flames performed respectably, and with a few more favourable bounces, there may have been a sixth game.
Energy producers and midstreamers have their own odds stacked against them: low commodity prices, restricted ac-cess to world markets, and expectations from shareholders to perform financially.
Imagine if the Flames management had a game simulation model which enabled them to enter the characteristics of each player, the rules of play, and the goal of winning the Stan-ley Cup. With this model they could run thousands of game scenarios and identify which combination of players and ice time allocation, which would provide the greatest chance of collecting Lord Stanley’s prize. In essence, they would be able to determine the optimal performance with their given assets. Now imagine if oil and gas executives and managers had ac-cess to a similar tool to optimize their assets.
Enter Stream Systems, an Alberta owned and operated com-pany, which provides an innovative way for energy companies to run their business. Stream builds simulation models by working together with producers and midstreamers in captur-ing facility and equipment constraints, adding the operating
parameters, and finally, overlaying the business rules. This model enables end-users to run thousands of operating sce-narios and identify which particular combination of assets and their allocation, which will provide the greatest opportunity of maximizing their return on investment.
“Stream enables you to identify, assess, and reduce your system bottlenecks by providing a planning and optimizing toolkit which can be tailored to your oil and gas assets,” said CEO Dumitru Cernelev. Birgit Juergensen, VP of Operations, added, “this toolkit assists you in managing operating costs and increasing both physical and financial throughput. Our solutions bridge engi-neering, operations, and financial aspects of your business.”
Stream recently completed a terminal optimization project for a major international midstreamer. With Stream under-standing their physical and operational constraints and their business imperative they were able to create a business simulation model that identified a capital savings opportunity of over $80 million. This enabled the midstreamer to meet their return-on-asset threshold for project approval. There were knock-on operational savings in the millions of dollars as a result of improved product quality, which could garner a premier price. Stream is currently working on another project with this customer. Paul Murphy, Director of Sales, said, “repeat business is the ultimate indication that we’ve satisfied the customer’s expectations.”
Asset Optimization: It’s just a gameStream Systems
L-R: The Stream team - Allan Chegus, Dumitru Cernelev, Thomas Xi, Paul Murphy, Alvaro Gil, Birgit Juergensen, and Debra Golding. Missing is Colleen North.
20 WWW.NORTHERNSTAR.AB.CA
PROFILE
President Allan Chegus elaborated on the reason more oil and gas companies are choosing business simulation.“Simulation creates a risk free virtual world which allows companies to experiment with business rules, operat-ing procedures, and asset configuration for brown and green field projects.” He continued, “Stream applies industry experi-ence, leading technology, and research to create unique al-gorithms specific for producers and midstreamers that result in proven and repeatable success.”
Typically when companies are faced with difficult market condi-tions and uncertainty in commodity prices, they turn to innova-tion and new technologies to aid them in weathering the storm. Stream Systems provides that innovative technology.
Stream has been operating for nine months. They have nine employees, soon to be 12, and are growing rapidly in a market where the news has been dominated with stories of staff reduc-tions and capital spending cuts.
Stream Systems has other success stories of saving compa-nies millions in capital costs through operational and business simulation modelling. If Stream’s success continues, maybe the Flames will call on them next year to model a road map to go deeper in the playoffs.
L-R: Birgit Juergensen, VP, Operations, Allan Chegus, President, and Dumitru Cernelev, CEO, go over one of Stream’s products.
L-R: Thomas Xi, Debra Golding, and Alvaro Gil discuss a model used by Stream.
ENERGY PROCESSING CANADA | MAY/JUNE 2015 21
