It’s no secret that oil and gas prices are at an all-time high. Corporate giants across the world are taking advantage of the growth and gushing in revenues.
This exponential leap over the years would be impossible without leveraging sophisticated business intelligence solutions which are not only reliable and safe, but also scalable enough to respond to oil and gas’s interminable demand, and agile to predict future trends.
How Oil Companies Use Real-Time Business Intelligence To Maximize Profits
Successful companies push innovation through artificial intelligence, algorithms, and efficient data automation. Real-time business intelligence (BI) is key to maintaining an advantage in your company’s ever-changing market.
For example, Amazon uses real-time business intelligence to manage its complex supply chain. However, oil refineries and downstream companies have different variables to consider. How could oil companies use BI to maximize their profits?
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Instead, you can have the rack price information that you need right at your fingertips. Not only that, but you will have actionable insights that transforms your data into decisions.
What is business intelligence, and what is its purpose?
Business intelligence is a way to use technology to organize and analyze data related to your business. Tapping into that business intelligence means receiving data about your operations as they are taking place. It is a means for your team to analyze data with zero delays.
BI takes data from multiple trustworthy and reliable sources, then stores it in one central location. It then organizes the data and makes it available to decision-makers in real-time. Easy-to-use formats like dashboards and reports streamline team communications.
Since BI tools mine and analyze vast amounts of data, unexpected situations can be responded to as they occur with minimal delay. Business decisions can be made, and business goals can be set based on high-quality output from a BI system, and aims to turn raw data into solid business decisions and real-world prosperity.
Business intelligence from DTN will allow you access to quality data and actionable insights. You will quickly see improvements in operational efficiency and, in turn, greater profits.
Gaining a profit advantage
Gaining a profit advantage depends on effectively acquiring and using data through properly integrated business intelligence systems.
Proper use of that current and historical data will help your company isolate each step in the business process. Real-time business intelligence systems allow for faster data analysis, crucially giving you the opportunity to react almost immediately to market fluctuations and other events.
A fully integrated BI system will allow you to make each step in your process more efficient. Greater efficiency leads to increased prosperity and success for you and your clients.
Business intelligence also allows you to reduce your costs. New revenue streams can be generated based on the profitable analysis of quality data. This access to real-time business intelligence lets you make more confident, data-driven decisions because you don’t have to take chances on old data.
A tailored approach to your company will make processes more efficient and maximize profits at each step. Based on a comparison of historical data and current conditions, you can also more effectively predict market fluctuations and identify future opportunities.
9 Ways Using Business Intelligence Can Help Businesses In the Oil and Gas Industry to Stand Out
The Oil and Gas industry is evolving, and oil fields are now equipped with the types of machinery that are fast and reliable to process hundreds of metric tons of crude oil and ensure safety along with better production. This gave the industry a ton of opportunities to grow business and create opportunities to maximize profits.
Implementing Business Intelligence can help you manage data from all the sources across the field and implementing brilliant visualizations can help you improve decision-making and help you stand out.
And with more than 80% of oil and gas businesses operating digitally, it would be safe to say that implementing Advanced Analytics and Business Intelligence is now a necessity more than an option. Here are 9 ways businesses in Oil and Gas Industries are implementing Business Intelligence to stand out from the competition.
1. Data Integration and Management
All businesses in the oil and gas sector, whether it’s a small refinery or a huge exploration unit, generate an exceptional amount of data from various devices, equipment, and sensors used in drilling, refining, and exploration activities.
Business Intelligence tools help in integrating data from all the sources and managing this data efficiently. Businesses are creating a centralized data repository that is easy to access and creating visualizations that are easy to understand.
2. Exploration and Reservoir Analysis
Business Intelligence tools can help process seismic data, geological information, and drilling data from across all owned equipment and the web to assist in the characterization of reservoirs and field optimization.
This helps stakeholders to make informed decisions about where the drilling locations should be and what production strategies can help maximize profits.
3. Production Optimization
In the oil and Gas industry, Business Intelligence software can be found in oil fields to monitor oil production levels, identify performance bottlenecks, and optimize field operations in order to maximize efficiency as efficiently as possible.
As a result of real-time data analytics, all production processes can be adjusted immediately to improve quality standards and meet the demands of the rapidly shifting market.
4. Enable Predictive Maintenance
Using Business Intelligence and advanced data analytics enables the oil and gas industry to become more efficient by adopting predictive maintenance of equipment and infrastructure.
By actively analyzing historical data and similar anomalies, companies can predict when equipment is likely to fail, which can help them reduce downtime and minimize operational disruptions resulting in more sales opportunities.
5. Cost Control
Business Intelligence software can assist in cost analysis by providing detailed insights into all expenditures across various ongoing projects and field operations. This enables companies to identify various cost-saving opportunities and allocate resources more effectively to improve profits.
6. Market Analysis
Oil and gas companies use advanced analytics and Business Intelligence to track global market trends, pricing fluctuations, and geopolitical events across the globe that impact the industry. This information helps in making strategic decisions that can help to improve production levels and optimize pricing.
7. Supply Chain Management
Maintaining efficient supply chain management is crucial for all businesses in the oil and gas industry. Business Intelligence tools provide real-time insights into the entire supply chain, helping companies optimize their inventory levels, reduce all transportation costs, and manage asset acquisitions effectively.
8. Asset Performance Management
Business Intelligence aids in assessing the performance of all assets, such as pipelines, rigs, and refineries. By analyzing data on the performance of field assets, companies can extend the overall lifespan of equipment, reduce maintenance costs, and improve profitability.
9. Risk Management
Business Intelligence tools are used in fields to assess and mitigate risks associated with exploration and production activities. This includes identifying various safety hazards, keeping track of nature-based risks, assessing geopolitical risks, and managing financial problems if persist.
Business Intelligence solutions and tools help the oil and gas industries
Let’s have a look at some basics first
Business Intelligence (BI) is essentially a technology-driven innovation that helps evaluate your business data and deliver workable insights. The primary purpose of this expedient capability is to empower corporates across all sizes to achieve their goals strategically through the power of automation.
This is accomplished through the use of a variety of automation tactics and technologies to deliver, adapt or restructure information technology processes.
BI employs various tools- such as reporting, analytics, and data management- to usher in ground-breaking results. It enables the organization to boost overall profits, optimize workflows, and eventually establish a strong foothold in the cut-throat market.
How does it work?
BI automates most of the manual tasks, and decision-making processes, which were earlier based on gut feeling, so the organization can utilize its time and resources more efficiently.
The tools collect data across all the departments, analyze it thoroughly, and finally deliver results that are easy to comprehend and execute, in the form of visual reports, charts, dashboards, etc.
The BI technology follows four steps to transform both older and real-time data into a feasible entity. They are:
Step 1: Extract, Transform, Load
Business Intelligence tools first aggregate various types of data from a host of sources. The data is then adapted before being deposited in a centralized location. This helps the tools conveniently analyze it as one data unit.
Step 2: Data Mining
Data mining is a type of data analysis that employs automation to swiftly examine organizational patterns and anomalies to cater to actionable insights and offer a roadmap to accomplish business objectives.
Step 3: Data Visualization
BI tools use data visualizations to make the insights much easier to comprehend and disseminate. They do this through the means of interactive data dashboards, graphs, charts, etc.
Step 4: Actionable Insights
Taking into account all the organizational data, and other factors such as market trends, BI tools come up with astute strategies that help businesses gain a durable edge over their competitors.
These strategies help implement long-term changes in the organization, resulting in negligible inefficiencies, adapting to market trends with confidence, and resolving supplier challenges as well as other customer complaints quickly.
These automated steps allow a company to deploy their time, energy and other resources more effectively while concentrating on reaching its goals as planned.
Business Intelligence Application in Oil and Gas Industries
The biggest challenge of Business Intelligence tools is to streamline the humongous operations involved in the oil and gas industry.
It plays an immense role in data integration, warehousing, financial planning and other decision-making processes. Through its responsive tools, the technology has managed to forecast successful trends, making it a huge investment avenue.
Because the oil and gas industries generate a massive quantity of data, BI technology has the potential to revolutionize them. Oil and gas firms can get live updates on processes via BI.
This legitimate data support authorities in making informed judgments that will help them increase productivity. From identifying the best locations to carry on operations, to insights that will help cut down on the risks of downtimes, BI plays a vital role in the smooth working of these massive industries.
By leveraging information from numerous dashboards and business KPI screens through BI tools, companies are more easily able to detect bottlenecks, optimize production growth opportunities, and troubleshoot problematic areas.
The benefits of business intelligence
Real-time business intelligence means you can:
- Keep your data organized and accessible for easy analysis
- Access key data across multiple company departments
- Reference the data you need quickly and make decisions without delay
- Have current information constantly available
- Identify market trends
- Compile reports faster and with greater accuracy
- Identify areas of inefficiency in your business processes
- Drive sales
- Track performance
A typical case study for a downstream oil company would show where business intelligence systems have helped a company consistently buy oil at the lowest possible prices.
The oil company would receive real-time business intelligence updates on their own sales hour by hour. The data gathered, processed, and analyzed by their business intelligence systems would also allow them to predict the volume of future sales with more accuracy.
One of the most significant advantages of using business intelligence is reduced risk. Decision-makers are empowered to make thoughtful investment choices based on real-time information. Much of the guesswork is taken out of the equation.
Additionally, a well-integrated BI system enables a downstream oil company to predict equipment problems. Your team can then carry out preventive maintenance and repairs. This is yet another substantial money-saving benefit.
Predicting fuel demand
Accurately forecasting fuel demand is a high-level benefit of real-time business intelligence for the oil industry. Oil companies can use vast amounts of historical data to prepare for actual customer demand rather than guess what the need will be.
Oil companies need to be able to make accurate predictions in this area. Having ready access to quality data and combining it with the power of data analytics will allow you to maximize your profits.
Your operations managers can receive real-time information on market levels through integrated business intelligence systems, allowing for continual adjustments to the scheduled supply.
Business intelligence tools make fuel demand forecasting possible because they draw on large quantities of available data. Actionable insights are based on historical patterns of consumption data combined with current data on factors affecting demand, such as price fluctuations or geopolitical events.
A better way
Oil company professionals have always relied on market news and analysis to facilitate successful decisions. Whereas in the past, limited sources of information made for slow progress, your company can now work at lightning speed with the help of a suite of tools tailored to meet your company’s needs.
These business intelligence tools will make you a leader in the refined fuel market. Use BI to check information on daily rack prices from multiple terminals.
Your custom dashboard will enable you to see the difference between costs immediately. That real-time advantage will lead to significant savings. When you buy significant amounts of fuel daily, you can also use business intelligence tools to check temperature values to ensure correct pricing.
With all the benefits mentioned in this article and many more, exploiting the potential of business intelligence by using the right tools gives you high-level benefits.
DTN FastRacks® lets you keep a close eye on rack pricing in real-time and work with market fluctuations to remain competitive in the eyes of your customers. The superior market intelligence and actionable insights provided by DTN FastRacks give you the competitive edge you need.
Here is an outline of the benefits of Business Intelligence in the oil and gas industry:
- Real-time data is crucial to managing heavy machinery
- Accurate predictions to help make better decisions with regards to exploration areas, operations etc
- Seamless collaboration between departments, thereby improving internal analytical capabilities
- Better customer service through data aggregating abilities (both historical and real-time)
- Reliable and secure- the massive company’s data is stored safely in a centralized system that can be accessed by only those with the company’s permission
- Better employee satisfaction- less time doing manual and redundant work allows the team to explore new growth opportunities and ideas, thereby giving them more job satisfaction
- Companies can stay up to date with industry changes and track market trends.