The process of upstream planning for the oil and gas industry has historically been a time consuming and inefficient process. The majority of effort is spent collecting data from multiple functional areas and organizational teams within an organization to form a holistic view of a company. By introducing an integrated solution that combines the opportunity catalog, economic analysis, and optimization into a single workflow, planners are experiencing efficiency gains, reduced time spent planning, and more accurate results. Through an analysis of the implementation of such a system at Chevron's Gulf of Mexico Business Unit (GOMBU), the challenges and benefits of implementing an integrated business planning approach as described will be demonstrated.
This paper will reflect on the systems, processes and workflows involved in the planning process at GOMBU both before and after deploying an integrated planning solution consisting of an opportunity catalog and linear optimization tool. This paper will also describe the challenges faced during the implementation and the benefits gained after the solution was deployed.
Define "Vision" and reason for move to linear optimization
Discuss state prior to deployment
Evaluate technical challenges with current state
Review state after deployment
Examine results and gained benefits
Proposed model for integrated planning framework
Results & Observations:
Improved efficiency of portfolio optimization was significant, optimization time went from several weeks to days
Portfolio optimization process was more fluid and responsive to changing business environments
Secondary value generated to the entire organization in data integrity, consistency, management visibility into data, and traceability through opportunity maturation.
Significant improvement in planning efficiency and accuracy achieved through implementation and execution of proposed architecture
Integrated planning saves time, money and leads to significant value realization
Learnings are applicable to any mid-to-large sized organization with any aspect of the planning process
Combination of opportunity tracking and planning into a single workflow
Combination of Opportunity Catalog, Economics Engine, and Linear Optimizer into a single portfolio analysis package
Cross-functional visibility and input into the plan and communication of results