Improving Cost Visibility ConocoPhillips - assets.teradata.com · • ERP Business rules •...
Transcript of Improving Cost Visibility ConocoPhillips - assets.teradata.com · • ERP Business rules •...
© 2015 Teradata
Joseph A. Taylor (JT), Sr. Industry Consultant, Teradata
Gisle Karlsen, Integrated Planning and Scheduling, ConocoPhillips
Improving Cost Visibility
ConocoPhillips
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Company Background
17COUNTRIES WITH
OPERATIONS AND
ACTIVITIES
HOUSTON, TXCOMPANY
HEADQUARTERS
COPNYSE TICKER
13,300
EMPLOYEES
WORLDWIDE
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Case for Change – Lower Cost of Supply
➢ Decreasing price of oil
➢ Increasing cost of Maintenance
➢ Organized for financial reporting, not for operational analytics.
Cost Insight Capability
➢ Poor visibility into other work groups i.e. Drilling & Completions, Land, Production, etc.
➢ Few people can build insight.
➢ Cumbersome to extract data.
Operations Technical
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TAS Core
The Ascent – Cost Insights
Foundation 60-70%
Business logic 20-30%
BI/Visualizations 10% • Reporting• Analytics
• BU logic• Business Processes• Local flexibility/variation
• ERP Business rules• Settlement logic• Cost Center hierarchies• Cost Element hierarchies• Operational dimensions
• RAW ERP Data
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SCADA
Cost Foundation
• What is Lifting Cost?• Expense required at the field level to
operate wells
• Composed of millions of individual
transactions• 6 major functional categories• 50+ cost elements
• Lifting Cost Analytics• Maintain accuracy & lineage back to origin
• Ability to view lifting cost by lease
• Ability to view lifting cost by month
Normal Ops
RTP
Surface
Maint
Saltwater
Compression
Wellwork
Gross Margin/BOE
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Data Integration
IDW
Financial Data Production & Operations DataIntegrated Model
Lifting Cost
Transaction View
WELL LEVEL
LIFTING COST
ALLOCATION
MODEL
WaterBOE
Gas
OBXUniformMSO
Route
COSTALLOCATION
METHODS
Daily Producti
on SCADA
ERP
Monthly Producti
on
Monthly OBX
IDW
Master Data
IDW
PRA
Bi or Analytics
Tool
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So what?
Efficiency
•Instant consolidation – Ops cost reporting ~ 1day
•Analyzing vs. data capture
•Instant visibility
Cost Savings
•Cost avoidance
•Transparency in allocated cost
•Accounting validation
Strategy & Planning
• Economic modeling for lease divestitures
• Data driven strategy
• Lease reviews
• Maintenance strategy changes
• Vendor relations
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Information Access
✓ Achieve lower cost of supply
✓ Provide transparency and visibility to asset
expenditures
✓ Exploit investments made in enterprise data
assets
✓ Cascade cost insights to enhance business
decisions
✓ Continually knowledge share with other business
units/groups to minimize duplicate efforts
Thank You!
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