INDUSTRY OVERVIEW

SAS® for Oil and Gas Create intelligence from new data sources and deliver information for effective decision making across the enterprise

Burgeoning demand in emerging econ- omies. Competition for leasing rights and financial capital. Increasing public scrutiny and regulatory demands for transparency. Delivery of a product with aging assets and the threat of a retiring workforce. This is the state of affairs for the world’s energy industry.

In this environment, oil and gas compa- nies are seeking opportunities to improve processes and technologies to remain competitive. Upstream oil and ■ Challenges gas companies need integrated views of • Preventing production losses due to their production processes all the way unexpected shutdowns, discovering root from the reservoir to the pipeline. They causes, and optimizing plant and must optimize their processes and per- corporate performance. form predictive analysis of production problems to minimize losses. In down- • Accounting and planning for severe price stream operations, oil and gas compa- volatility for feedstocks and end-products nies need integrated monitoring of the (e.g., gasoline and natural gas), which conditions and performance of their requires advanced forecasting techniques refining plants. And meeting demand for and integrating forecasts with trading and petrochemical and refined products will risk management capabilities. require integrated diagnostics that pre- • Balancing near- and long-term asset dict variability in product quality, deter- development by exploring in more geologi- mine root causes of maintenance issues cally complex and remote areas and and enable improved asset optimization. optimizing production equipment to extract assets at an expected pace. Finally, boom and bust cycles have taken their toll on the industry, produc- • Reporting on compliance with health, ing large gaps between young, inexperi- safety and environmental regulations. enced employees and older employees who have the skills and experience nec- • Providing relevant and timely insights to essary for seamless operations. Oil and decision makers along the entire value gas companies must continue to mod- chain. ernize and automate key processes such as forecasting, planning and oil field simulation analyses to manage growing demand with fewer people as retirements increase. Achieve peak performance

® How SAS Can Help Demand Forecasting ■ Key Benefits • Improve uptimes, performance and Oil and gas company leaders around the SAS equips you with the power to gain availability of upstream and downstream world rely on the power of SAS to deliver valuable insights about the markets for assets. the predictive maintenance, forecasting your commodities, whether there are and analysis, and energy trading and risk disruptions to supply or weakening of • Manage fuel price and feedstock volatility. management systems needed to effec- demand. These insights span the past, • Optimize exploration in mature fields and tively manage the world’s longest supply present and future, enabling effective in unconventional sources. and process chains, from the wellhead to responses to unexpected changes, the retail gas pump. With more than improvement of short-term results and • Meet regulatory demands. three decades of experience delivering future matching. Forecasting with SAS • Improve production efficiency and refining industry-leading capabilities in data inte- predicts patterns of consumption margins. gration, advanced analytics and business behavior using a wide and increasing intelligence, SAS provides everything range of factors. Understanding and • Provide collaboration among stakeholders needed for oil and gas companies to quantifying these factors helps to build to enable better understanding before create intelligence from new data sources better, more accurate forecast models. making critical decisions. and deliver information for effective deci- sion making across the enterprise. Data Quality Upstream and downstream oil and gas Capabilities companies rely on data for oil field work, plant operations, workforce manage- Facility Integrity and Reliability ment, regulatory compliance and down- stream marketing. Upstream companies SAS provides an analytics-based frame- need clean, uniform data to create the work to improve uptimes, performance analytics for reserves-exploitation deci- and availability of crucial assets while sions. Downstream refining companies reducing the amount of unscheduled continue to look for ways to improve maintenance, thus minimizing mainte- and automate their refining and market- nance-related costs and operation dis- ing processes, adding more data ruptions. With state-of-the-art analytics sources to their management systems. and reporting, you can predict mainte- Transforming that data into useful, high- nance problems before they happen value information can help the refiner and determine root causes in order to make wider ranges of administrative, update processes for future prevention. operational and management decisions The approach reduces downtimes, opti- to make and sell products. SAS helps mizes maintenance cycles, reduces ensure consistency across silos in both unscheduled maintenance and gains upstream and downstream operations, greater visibility into maintenance issues. enabling geoscientists and engineers to perform deterministic and interpretive assignments without being encumbered with data preparation. Exploration and Production Data Integration Success Stories Optimization SAS Data Integration provides the foun- • (Brazil) manages more than Upstream exploration and production dation for supporting anticipated new 100 production platforms, 16 refineries companies need the ability to perform data influxes by helping you transform and more than 6,000 fuel stations. exploratory data analysis by scrutinizing your operational data into useful informa- Using SAS to find oil, they are achieving the data across all upstream domains. tion. It provides capabilities for enterprise record results, including a daily record They need to be able to integrate data access and processing across sys- output of over 2 million barrels of oil on cleansed data from geophysics, geology tems and platforms – including internal a single day, doubling the previous and reservoir engineering, generate spa- processes, third-party or regulatory record. Petrobras also uses SAS to tial models or variograms, and incorpo- sources, the Web and more. SAS Data support decision-making processes, rate data from various databases and Integration also helps ensure information which has improved project profitability. other niche market applications for excellence through data quality lifecycle uncertainty analysis. Using an optimized management. And an interactive, visual • Rete Gas () concentrates on data portfolio, oil and gas companies data integration development environ- transporting natural gas, and must can develop plans for their resources ment enables collaboration and easy ensure the proper allocation of with well analysis, reserves evaluation, reusability across your organization, all nominated quantities at more than and quantification and qualification of with a single point of IT administration. 7,000 delivery points, including local risk and uncertainty. grids and major industrial and Energy Trading and Risk thermoelectric customers. SAS Components Management provides large-scale forecasting SAS utilizes the solutions of its automation with improved forecast Predictive Asset Maintenance RiskAdvisory division to provide energy accuracy, providing timely and accurate SAS Predictive Asset Maintenance trading and risk management (ETRM) forecasts at a more granular level of enables organizations to increase reve- solutions and business intelligence tools detail. As a result, the company nues by reducing asset and plant down- that enable organizations to proactively complies with industry regulations and time. The solution helps you predict capture, analyze and simulate market meets its customers’ service events that can cause outages to and credit risks in volatile energy and expectations. commodity markets. World-class risk reduce unplanned maintenance and • ConocoPhillips Norway needed to achieve optimized, sustainable mainte- analytics, modeling and reporting capa- manage its maintenance performance, nance strategies with minimal disruption bilities, delivered in an integrated frame- as this was its biggest cost. Implement- to production. As a result, you can max- work, offer a portfolio-level view that ing scorecards powered by SAS imize the use of maintenance resources enhances risk management and strate- contributed to more formal approaches to meet operational goals for profitability, gic decision making. SAS® to strategic performance management. safety and environmental compliance. BookRunner® provides organizations with the ability to proactively capture, SAS allowed the organization to focus analyze and simulate market and credit on performance by enabling better risks associated with energy commodity decision making and cost control. price volatility. Through an integrated ETRM framework, SAS BookRunner delivers a portfolio-level view to mea- sure, manage and control energy risk. This front-to-back-office solution descriptive modeling, data mining, text Analysts can generate forecasts includes deal capture, data integration, analytics, forecasting, optimization, sim- that reflect the realities of business, advanced predictive analytics, compli- ulation, experimental design and more. improving your ability to plan future ance reporting and a full suite of sophis- From dynamic visualization to predictive events with confidence, and improve ticated risk modeling tools. modeling, model deployment and pro- forecasting performance across all cess optimization, SAS provides a range products and locations – at any level Forecasting of techniques and processes for the of aggregation. collection, classification, analysis and With SAS forecasting software, you can interpretation of data to reveal patterns, • Predictive modeling. Because of analyze and forecast processes that take anomalies, key variables and relation- the wide variety of asset character- place over time. By identifying previously ships, leading ultimately to new insights istics and changing performance unseen trends and anticipating fluctua- and better answers faster. thresholds over its life cycle, it takes tions, you can more effectively plan for the full power of SAS’ best-in-class the future. Whether you want to under- ® data mining tool to predict asset per- stand past trends, forecast the future or The SAS Difference formance accurately. better understand how your business • Superior data integration capabili- functions, we provide a wide range of • Integrated reporting and busi- ties. Using SAS, oil and gas com- analytical tools that ensure your success. ness intelligence. SAS allows you panies can extract and transform to access the latest information on data from nearly any source, identify Business Intelligence key maintenance and reliability per- analytically relevant variables and formance indicators, including their SAS Business Intelligence gives you the describe underlying patterns and business impacts and performance information you need, when you need it, characteristics of a data set. trends – as well as create ad hoc in the format you need. Today’s progres- • Relevant experience helping charts, graphs and reports – through sive oil and gas companies are rolling out a Web-based, point-and-click inter- self-service reporting and analysis to industries adapt to change. SAS everyone’s desktop, so decision makers has many years of experience work- face, without having to be an expert spend less time looking for answers and ing with a wide range of markets in statistics. more time driving strategic decisions. that have faced new challenges. We are a unique provider of solu- About SAS Advanced Analytics tions that enable transformative SAS is the leader in business analytics change while controlling costs and software and services, and the largest SAS is unmatched in converting data improving operational decision sup- independent vendor in the business into the insights needed to respond to port, especially in view of workforce intelligence market. Through innovative completely new situations affecting busi- changes likely to affect oil and gas solutions delivered within an integrated ness operations, in ways that can be company operations. framework, SAS helps customers at tested, evaluated and validated. SAS more than 50,000 sites improve perfor- solutions reduce uncertainty, quantify • Proven forecasting. SAS solu- mance and deliver value by making bet- variability, refine processes and help you tions can generate large quantities ter decisions faster. Since 1976 SAS allocate resources with greater preci- of high-quality forecasts quickly and has been giving customers around the sion. SAS Analytics provide an inte- automatically, enabling organizations world THE POWER TO KNOW®. grated environment for predictive and to plan more effectively for the future.

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