Advanced

Data
Management
& Analytics
in Oil & Gas

PPDM Houston Data Management Symposium & Tradeshow 2017

Nishanth Raj Anoop Kuriakose

Digitally savvy organizations are already aligning their people, processes, and culture
to achieve long-term success with Advanced Data Management & Analytics

Respondents were asked to select the technology most important to their
organization today and in three to five years
Respondents were asked to ‘imagine an ideal organization transformed by
digital technologies and capabilities that improve processes, engage talent
across the organization, and drive new value generating business models’.
They were then asked to rate their company against that ideal on a scale of
1 to 10

Survey Source: Aligning the Organization for its Digital Future – Deloitte
University Press survey in collaboration with MIT Sloan Management
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Review Advanced DM & Analytics in Oil & Gas 2
Data Management Maturity
While most
DATAorganizations
MANAGEMENT have MATURITY
established baseline data management principles, few
are exploring the new advanced analytics space
Leading
Scalable, sustainable, and efficient data
management practices require further
capability and operating model maturity Defined

Applied
Dynamic Data Management Data as a
Impact

• Big Data Management Data Fabric TM

Natural Language
Intelligence
Data Discovery,
Service
Machine Learning and
• Organization Change Processing & Text Ontologies, and
Advanced Analytics
Analytics Visualization
• Chief Data Officers
• Authorized Sources
• Monitoring & Controls
Defined • Compliance Reporting
• Cyber Security
• Data Governance
• Data Architecture
• Master Data Management Crowdsourcing, Cognitive Data Data
• Meta Data Management Collaboration & Gamification Steward TM Monetization
• Data Quality & Cleansing Crowdsourcing and
• Security, Privacy, Encryption Cognitive Computing Collaborative Gamification
Analytics
• Archiving & Retention

Capability

To gain a competitive advantage, organizations should consider investing in the latest advanced analytics capabilities to set the pace.

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#1 – Natural Language Processing & Text Analytics
Parse language based data, such as handwriting, voice, and images, into contextually relevant entities and
relationships and integrate with other structured data for greater process automation and analysis

Data Management Applications O&G Use Case

Digitize, control, and mine an array
of data, such as:
• Regulations & compliance
• Lease agreements
• Royalty and equity split
documents
NLP ICR HWR • Mine failure summary entered by
field worker to programmatically
ensure that failure entered matches
description
• Link to AFE and/or orders system to
create field estimate and/or place
order for part to fix

• Field data capture inputs

Financial Services Use Case
• Failure summaries
• Trading platforms utilize NLP to
• AFE comments and supplements quickly scan earnings and other
news releases to execute trades and
• General legal documents
analyze sentiment in fractions of a
• News releases second.

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#2 – Data Discovery, Ontologies, and Visualization
Explore and uncover multi-dimensional transitive relationships from data to discover and visualize situation-
aware, relevant information through the use of images, interactive technologies, and spacial, temporal, and
social network displays
Data Management Applications O&G Use Case
• X-ray environments and extract • Combine and analyze data from
metadata structures multiple data sources to discover
previously unnoticed patterns e.g.
• Build an integrated data
dictionary for enterprise data
well failure rate cross referenced to
sources and network vendor selection
relationships • Track money spent on well repair
• Expose critical data for deeper AFEs and view the decline of failure
controls and insights rates over time

• Apply visualization for: Retail Use Case

• Production trends • Mine customer data to predict
basket value vs distance between
• AFE expenditures residence and store
• Warnings, • Track diversified quantifiable
exceptions/violations metrics and their effect on total
sales (shelf position, advertising,
• User activity discounts)
• Stewardship efforts

• Data integrity analysis

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 #3 – Machine Learning and Advanced Analytics
Classification Graph Linkages Temporal & Spatial Anomaly Detection
Solve problems that
A cannotB
be solved with conventional technology by deploying systems that continuously
learn, gain experience
C
through practice, and apply advanced models and algorithms to increase its
knowledge and confidence D over time, supporting operational or tactical decision making
E

Data Management Applications O&G Use Case

Clustering Identify and maintain probabilistic Identify patterns across time and Identify patterns in data that do not
associations and relationships between locations, e.g. deposits into multiple conform to models of standard / normal
profiles and groups accounts, aggregation into separate behavior
• Suggest “Next Best Action” based on accounts, and transfers out • Automatically scan estimate data
collection of mapped variables to predicted for quality issues based on
Neural Networks Prediction
Classification Graph Linkages
responses.
profiles & groups across multiple E.g. how to ship crude oil to Classification
Regression
Graph
A Linkages
Temporal & Spatial
predictions
Temporal & Spatial based on
Anomaly Detection
currently
Anomaly Detection
get maximum transportation efficiency and
Inputs B

available assumptions
Hidden I A
Hidden II B
value, considering distance, forecasted
ecific Transactions - Deposits, Outputs C
ithdrawals, Wires, Checks
Suggest fixes based on like data
C
revenue, and ability to meet demand?
dividuals & Accounts (multiple E
D •
andpatterns
preexisting
across time and data in thepatternsdata
D
ansactions) E
Clustering
Fight fraud (skimming, volume
Identify and maintain probabilistic Identify Identify in data that do not
usinesses &•Organizations Clustering Identify and maintain
associations probabilistic
and relationships between Identify
source
patterns
locations, e.g.across time
deposits andmultiple Identify
into patterns
conform in dataof
to models that do not / normal
standard
manipulation,
multiple Individuals & Accounts) etc.) by
Identify scanning
hidden profiles andfor
patterns Identify profiles and patterns from associations
Statisticaland relationships
profiles
process and between
to groups
estimate
profiles and groups
locations, e.g. deposits
accounts, into multiple
aggregation
accounts,accounts,
aggregation
andinto
into separate conform to models of behavior
separate
transfers out behavior
standard / normal

combinations
Rings” (multiple Businesses,
dividuals, Accounts)
of outliers that deviate
within multiple complex interconnected
layers and trends
prototypical old profiles and cases to
infer predictions of future fraud
relationships among variables for
prediction and forecasting
accounts, and transfers out

significantly from the norm. Human Neural Networks Prediction

Healthcare Use Case
Regression
Neural Networks Prediction
intervention
Graph Linkages is occasionally needed
Temporal to
&Spatial
Create profiles & groups across multiple
Create Anomaly
layers:profiles & groups Detection
across multiple Inputs
Inputs
Regression
verify models to avoid false positives
Hidden I
A layers:
Systems are quickly able to
Hidden II
•
B Hidden I
1. Specific Transactions - Deposits, Hidden II Outputs
1. Specific Transactions -
Withdrawals, Wires, ChecksDeposits, Outputs

C
• Shift to proactive maintenance models 2.
2.
Withdrawals, Wires, Checks
Individuals & Accounts (multiple
Individuals & Accounts (multiple
suggest diagnoses based on
patient symptoms entered by the
transactions)
with the capability to forecast problems
D transactions)
E
3. Businesses & Organizations
and
Identify andapply fixes beforehand
maintain probabilistic Identify patterns across time and
3. Businesses & Organizations
(multiple
Identify
(multiple
Individuals
patterns in data
Individuals
&that
Accounts)
do not
& Accounts) Identify hidden profiles and patterns
Identify hidden profiles and patterns
doctor,
Identify profiles andwith
patternsprobabilities
Identify profiles and patterns from
from weighted
Statistical process to estimate
Statistical process to estimate
into the of consideration
associations and relationships between locations, e.g. deposits into multiple conform
4. to models of standard
“ Rings” (multiple Businesses, / normal within multiple complex interconnected prototypical old profiles and cases to relationships among variables for
4. “ Rings” (multiple Businesses, within multiple complex interconnected prototypical old profiles and cases to relationships among variables for
profiles and groups accounts, aggregation into separate behavior layers
Individuals, Accounts) andand trends inferinfer predictions future
fraudfraud prediction and forecasting
• Allocate resources dynamically and accounts, and transfers out
Individuals, Accounts) layers trends predictions of future prediction and forecasting

automatically based on sensor data. E.g. • Currently heavily used in the field
le adjusting
Neural
Inputs
Networks tanker routes and Prediction
volume based Regression of oncology, creating best course
on Hidden
well I sensors
Hidden II of treatment for cancers.
Outputs

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Identify hidden profiles and patterns Identify profiles and patterns from Statistical process to estimate
#4 – Cognitive Computing
Bridge the gap between big data and the reality of practical decision making. Rather than creating and
following an explicit set of rules, analyze data and sentiment holistically and infer meaning and decisions with
a level of confidence using a cumulative collection of knowledge.
Data Management Applications O&G Use Case
• Create a “data management brain” • Field data capture using a voice
function with knowledge of well based input system
data, AFE history, workforce, etc.
• Consume journals (JPEPT) and gain
• Train the brain to understand understanding of market trends and
internal and legal policies, then react industry best practices. Use
in situations of non-compliance knowledge to flag or fix potential
• Rapidly respond to access requests data quality and process issues
and permissioning for production
accounting system, internal
reporting system Other Industry Use Case
• Augment data stewards with • Call centers can realize huge
amplified advisory intelligence and savings and infinite learning
directed actions to help drive efficiencies by replacing call center
decision-making workers with cognitive machines.
This technology is commonly
• Automate cognitive processes and
actions to manage data based on
utilized today as a “landing page”
both best established and best for inbound calls.
learned practices in O&G

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#5 – Crowdsourcing and Collaborative Analytics
Leverage communities internal or external to an organization to achieve a specific goal, such as creating a
product, identifying a partnership with a startup, or sharing data

Data Management Applications O&G Use Case

• Membership to shared data set • Create repository to field comments
curations and consumption from individual field workers about
improving process.
• Shared protection and redundancy
• Consolidate reporting data across
• Coordinate and socialize key different business units to minimize
communications, updates, and
vetting of data
knowledge

• Pool organization to tag data

quality, trust, and endorsements
Consumer Products Use Case
• Distribute data cleansing efforts
• Coke executed a campaign in which
• Enable data stewards to tap into the they printed names on cans and
population RACI for data bottles in areas which had low
product penetration. This connected
• Enable access and Q&A with experts
with the people there and caused a
5% boost in sales.

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#6 – Gamification
Leverage game mechanics to incentivize individual or group behaviors

Data Management Applications O&G Use Case

• Employee training to drive • Publicize safety metrics across
efficiency and compliance with regions/subfields to incentivize
standards competition
• Innovative ways to engage • Create internal certifications and
internal and external achievements tied to success in
stakeholders across an training programs or results
information lifecycle, e.g.
surveying land, drilling,
production, maintenance

• Develop data visualization Technology Use Case

models to influence behavior
• Google gamified the expense
• Introduce unique scenarios and process by allowing employees to
test theories to discover impact choose what happened to remaining
of variables on outcomes travel funds, e.g. getting paid out,
donating to charity
• Provide rewards and recognition
• Resulted in 100% compliance within
6 months

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 Oil and Gas Value Chain
How do these advanced analytics capabilities fit into the oil and gas value chain?

Field
Exploration Drilling Production Transportation Refining Distribution
Development

The drilling process

Predictive models Pumpers utilize
Equipment contracts is monitored in real- Refining efficiency is Algorithmically
created by machine voice-based field Tanker routes are
are scanned for time, ensuring constantly monitored predict and assign
learning suggests data capture system adjusted to fit
unexpected terms, compliance to prior to ensure that product to buyers
potential drilling to improve metadata volume, demand,
raising flags jobs, and is output matches even before orders
opportunities creation and and external factors
supplemented expected volume are placed
standardization
NLP accordingly
ML CC CC ML ML CC
New data is
Safety metrics will visualized
be visibly shared automatically based
across all drilling on important
sites, encouraging dimensions, current
focus towards user activity, and
accident prevention company priorities
DD
G
Pumpers use internal
tool for when
assistance is needed
on their shift • Natural Language Processing & Text Analytics
CS
NLP

Benefits •
DD Data Discovery, Ontologies, Visualization

•
ML Machine Learning and Advanced Analytics
• Automate knowledge-intensive tasks that previously required human intervention at all stages
CC
• Cognitive Computing
• Create new data quality and functional business processes that were previously overlooked CS
• Crowdsourcing and Collaborative Analytics

• Frees up resources for more specialized, non-repetitive, innovative tasks as a business •G Gamification

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Key Takeaway – How can you (Data Managers) contribute?
As Data Management Professionals, its vital that we identify opportunities to use Advanced Analytics to
create value for the organization.

Repeat

Evaluate &
Identify Identify AA Implement a
Choose Scale
Opportunities Techniques Pilot
Vendors

Identify the right

Keep in mind that the Start very small and
Advanced Analytics
Look for data several vendors and focus on realizing
technique. For e.g.,
management challenges technologies are still business value very Scale to solve bigger
Machine Learning
that require human evolving. Evaluate quickly (in a few weeks) problems and realize
algorithms Vs
intervention for decision whether you should go and follow an agile more business value
Crowdsourcing
making open source Vs. approach for
approach or a
commercial software development
combination

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