© 2015 Teradata

Joseph A. Taylor (JT), Sr. Industry Consultant, Teradata

Gisle Karlsen, Integrated Planning and Scheduling, ConocoPhillips

Improving Cost Visibility

ConocoPhillips

2

Agenda

• Introduction

• Case for Change

• Building the Foundation

• So what?

• Questions

Content Slide

3

Company Background

17COUNTRIES WITH

OPERATIONS AND

ACTIVITIES

HOUSTON, TXCOMPANY

HEADQUARTERS

COPNYSE TICKER

13,300

EMPLOYEES

WORLDWIDE

Content Slide

4

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

Content Slide

5

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

Content Slide

6

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

Content Slide

7

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

Content Slide

8

Streamlining cost analytics

Content Slide

9

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

Content Slide

10

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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Email: Joseph.Taylor@ThinkBigAnalytics.com