On June 19th, our CEO, Wes Dyk, will be at the Hot Topic breakfast presented by Frost & Sullivan in Houston. The hot topic is how supply chain is the lowest hanging fruit to drive down well costs. Revonos is one of the startups presenting how we are disrupting business in supply chain! Visit the press release at https://ww2.frost.com/news/press-releases/frost-sullivan-sheds-light-on-innovations-in-the-oilfield-supply-chain/. A link to registration for the event is available in the press release. First come, first serve!
Revonos produced an analysis of hauling water to disposal using our new Limitless Delivery: Office Analytics tool. This tool is featured in the current issue of Energy & Mining International at https://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2/index.php#/26. The magazine doesn’t have the numerical results, but those are available to registered users of our website. Create an account and view the analysis summary of DJ Basin trucked water under Premium Content at https://revonos.com/dj-basin-water-disposal-efficiency-analysis/.
Using the Office Analytics module for Limitless Delivery, Revonos has created an efficiency model for water disposal in the DJ Basin. This report is available at https://revonos.com/dj-basin-water-disposal-efficiency-analysis/. It provides a view of how efficient water hauling for disposal could be, on average, across the entire basin.
This report is available to site members (no pay wall, just registration). Create an account, read the report and add your own comments!
During the month of April, Revonos is adding two new offerings to its business. The focus is a new module for Limitless Delivery focused on providing insights into efficiency for a given delivery network. The other is a site membership.
Limitless Delivery: Office Analytics
Much of the feedback from the promotion of Limitless Delivery brought to light the need for a tool that can help users understand the efficiency of their delivery networks. This module is simple to use. Office Analytics needs production facilities, delivery points (disposal or markets) and volumes for each. The logistics data is automatically handled after locations have been added to the same network. Costs at delivery points are not required, but can be added to differentiate options beyond the trucking component.
Site Membership at revonos.com
When visitors sign up for site membership on the company website, premium content becomes available to them. For instance, the first premium article provides efficiency cost scales for water delivery in the DJ Basin. These cost scales were created by the new Office Analytics module. Revonos will periodically publish content which benefits our members.
Energy & Mining International featured Revonos’ Limitless Delivery in a Top Tools article available in the print version (Volume 17, Issue 1) as well as online at http://www.emi-magazine.com/featured-content/exclusive-features/1507-revonos.
You may download the article directly from this website by clicking on this link.
We are looking forward to this conference! It will be valuable for operators to attend and get ideas on how to leverage technology to find margin in the current and future environments. Look for the @revonosbiz booth to see how we use #ORMS to guide decision-makers toward making optimal decisions.
Operations Research (OR) is not new. The development of the field took off following World War II. Industry took up the pursuit not long after. Today, the Franz Edelman Award finalists for 2018 were announced. This award presented by INFORMS is named to honor Franz Edelman who was a pioneer of OR/MS. He led the Operations Research department at RCA Corporation, where he envisioned using mathematical optimization to manage business better.
A petroleum entity, China National Petroleum Corporation, is included in the finalists this year. Previous years have had petroleum companies make the list of finalists, like Chevron in 2013. Last year’s inclusion of BHP Billiton is the finalist that I know of nearest to E&P operations, but it is in mining production, not the petroleum business. The common thread in the petroleum sector finalists has been midstream applications. CNPC applied ORMS to natural gas pipeline networks. Chevron optimized refinery operations.
Optimization methods are applied to E&P operations by companies such as ExxonMobil and BP. I applied OR to hauling at Noble Energy and discussed the models in my thesis. I believe this is rare. The reason I propose has to do with the common dialog that accompanies the historically volatile oil & gas markets. Producers are too happy to keep business as usual when prices are high. The most common response to low prices is to renegotiate contracts, drill less or not at all, pinch pennies and await the “recovery”. The shale explosion has been fueled by technological improvements that make development economic at lower prices. OR can help to make production operations economic at lower prices. A nice side-effect to making production operations more efficient is lowering the energy input to get the production output, reducing pollution.
I want to see OR topics become common in the conference rooms of E&P companies of all sizes, not only the majors. Let’s apply mathematical optimization to production operations and reduce LOE to make more profit.