Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Digitalisation and Advanced Analytics @ Shell: Shell Oil, Inspire Europe 2016

3,630 views

Published on

Petroleum drilling and production costs can vary greatly by location, and involve many other factors beyond the cost of the well, including the charge to lease land and royalties. Using Alteryx, Shell is delivering innovative and agile analytics solutions to meet a broad spectrum of challenges. This session will outline how Shell is using self-service data analytics within the overall corporate strategy and how analytics impact the company's bottom line.

To watch a recording of this session from Inspire Europe 2016, visit alteryx.com/inspire-europe-2016-tracks

Published in: Data & Analytics
  • Be the first to comment

Digitalisation and Advanced Analytics @ Shell: Shell Oil, Inspire Europe 2016

  1. 1. Copyright of Shell International Digitalisation and Advanced Analytics @ Shell Dan Jeavons Advanced Analytics CoE Lead 1August 2016Footer
  2. 2. Copyright of Shell International Session Speaker
  3. 3. Copyright of Shell International DEFINITIONS & CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, June 21, 2016. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. April 2016 3
  4. 4. Copyright of Shell International To watch a recording of this session from Inspire Europe 2016, visit alteryx.com/inspire-europe-2016-tracks
  5. 5. Copyright of Shell International Agenda  About Shell  The Energy Challenge  TaCIT & Our Digitalisation Strategy  Role of the Advanced Analytics CoE  Why Alteryx?  Our Use Cases to Date  Planned Next Steps August 2016 5Footer
  6. 6. Copyright of Shell International Business Overview August 2016 6Footer July 2015 RETAIL AND B2B SALES Refining oil into fuels and lubricants Liquefying gas by cooling (LNG) Exploring for oil and gas: Onshore and offshore Developing fields Producing oil and gas Extracting bitumen Producing petrochemicals Converting gas into liquid products (GTL) Upgrading bitumen Shipping and trading Regasifying (LNG) Supply and distribution Producing biofuels Generating power TRANSPORT AND TRADING MANUFACTURING AND ENERGY PRODUCTION DEVELOPMENT AND EXTRACTION EXPLORATION Copyright Royal Dutch Shell plc
  7. 7. Copyright of Shell International New Energy Future by 2050 Rising energy demand, supply pressure, climate change August 2016 7Footer Population 9 billion people, 75% living in cities (2 billion more than today) Vehicles 2 billion vehicles (currently 800 million) Rising standards Many millions of people will rise out of energy poverty; with higher living standards energy use rises Demand Energy demand could double from its level in 2000…but CO2 emissions must be half today’s to avoid serious climate change Efficiency Twice as efficient, using half the energy to produce each dollar of wealth Renewables 4 times more energy from renewable sources
  8. 8. Copyright of Shell International Technical & Competitive IT PT XLT 8 TACIT - HYBRID ORGANISATION E2E FULL TECHNOLOGY LIFECYCLE IT FUNCTION TECHNOLOGY RESEARCH & DEVELOPMENT Partnering with the business and functions to drive innovation Product development through Research & Development to deliver differentiating solutions Maintain and enhance technology solutions across Upstream and Downstream Enable Projects & Technology division within Shell INFORMATION & TECHNOLOGY
  9. 9. Copyright of Shell International What is digitalisation 9PT XLTShell Global Solutions International B.V.  New  An outcome  One off thing  Only in the future Is not Focus  How Digital technologies can help address current business challenges  Technologies that can have a substantial impact on our industry Shell context *Industry definition has been sourced from Gartner “The use of Digital technologies to change a business model and provide new revenue and value- producing opportunities” Industry definition*
  10. 10. Copyright of Shell International Disruptive Digital Themes Advanced Analytics Computational Technologies/HPC 3D Printing TECHNOLOGY INNOVATION THEMES MATURITYOFTHEME Disruptive Future Technologies Address the ‘human exposure bottleneck’ Robotics Interconnected devices & people Contextual interaction Internet of Things & Sensors Wearables & New Realities Design for Mobility Migrate to the Cloud Mobile First Everything to Cloud Innovate for the future Novel designs/parts manufacturing New business insights Enhanced algorithms/compute power
  11. 11. Copyright of Shell International What does the Advanced Analytics Centre of Excellence do? 11Footer August 2016 Strategic Objective Methodology Platform Development • Validated pipeline of opportunities constantly updated & iterated • Robust valuation methodology • Execution of Proof of Concepts • Inventory Optimisation • HSSE Incident Prevention • Market Basket • Processes to assess business impact & coordinate investment proposals • Assure & extend business cases by progressing Proof of Concepts to production Value Identification & Delivery • Scale & grow Production Platform to meet needs of Advanced Analytics community in Shell • License Analytics Lab to user communities for Proof of Concepts • Develop enterprise licensing agreements for Analytics software and drive convergence • Translate Proof of Concepts into supported Business Services leveraging standard Production Platform • Analytics Lab a test-bed for cutting- edge tools & techniques Network Co-ordination • Raise profile of AA within Shell and develop greater sense of community with the support of senior leaders • Generate best practice benchmarks and materials for analytics delivery in Shell • Technical, Commercial, Data Science & Tooling streams • Single point of contact, advice & best practices relating to Advanced Analytics • Identify & attract relevant skills & capabilities, and coordinate interventions where appropriate Innovation Remit Analytics Lab to trial & test technology in supported environment Analytics Network & External Partners Analytics Education & Communication of best practise Core Team with Technical & Commercial skillset $ $ 1 2 3
  12. 12. Copyright of Shell International Why Alteryx? 12Footer August 2016  Integration with R/Microsoft R  Simple data integration capabilities  Supportable  Cloud-based  Speed of Adoption Source: Gartner
  13. 13. Copyright of Shell International Market Basket Analytics for B2B Lubricants Business Context  How can we support cross-selling in Shell by providing predictive sales recommendations to product & account managers? Solution  Add to emerging 360 degree view of the customer, pulling together product segmentation, ordering and financial data sources in SAP HANA  Adapted a standard “Market Basket” approach to enable propensity recommendations associated with technical products.  Rolled-out to the US sales teams for field trials Business Impact  Strong up-tick in sales attributable to the tool through the reactivation of dormant locations and the identification of product gaps Next Steps Roll out to new markets 1312/21/2016*Benefits assumed starting in 2017 to be conservative. Assumes implementation of insights into business processes upon POC completion and continued successful deployment of solution
  14. 14. Copyright of Shell International Automated Supply/Demand Forecasting for Gas Traders Business Context  The Gas & Power Trading & Optimisation WONA team generate a daily supply / demand forecast for the German gas market.  Forecast process is susceptible to errors due to complex, daisy-chain data extraction process (50+ data sources)  Requires a high degree of manual FTE support Solution  An advanced analytical model which:  Automates data extraction and analysis  Enables sandpit environment for Business Analysts to enhance or amend supply / demand models  Reduces time to insight Business Impact  “This enables the desk to increase visibility & reduce delivery time for analysis. It has created a flexible analytical workbench which can be developed to enable deeper analysis”. Avinash Mahapatra, Gas Trading Analyst Next Steps Move solution into Production 1412/21/2016*Benefits assumed starting in 2017 to be conservative. Assumes implementation of insights into business processes upon POC completion and continued successful deployment of solution
  15. 15. Copyright of Shell International Inventory Optimisation Inventory management oversees the ordering, storage and utilisation of assets such as subsea facility equipment or pipeline parts. AS-IS PAIN POINTS $ RISING INVENTORY & CARRYING COST WAREHOUSE OVERFLOW UNREALISTIC SUPPLIER LEADTIMES PROBLEM STATEMENT HOW DO WE RIGHT-SIZE OUR INVENTORY STOCK TO ENSURE OPTIMISED SERVICE LEVEL TO DELIVER ON-TIME EXECUTION OF MAINTENANCE SCHEDULES AND MAXIMISE ASSET UPTIME? USE HISTORICAL DATA TO OPTIMISE THE RIGHT INVENTORY LEVELS BASED ON ACTUAL CONSUMPTION LEVELS USING ANALYTICS SOLUTION POC PAST DEMO PRIORITY PM VS. CM EQUIPMENT CRITICALITY CONSUMPTION HISTORY DEMAND VS. SUPPLY LEAD TIME ECONOMIC ORDER QUANTITY MATERIAL CRITICALITY REQUIRED SERVICE LEVEL REQUIRED STOCK LEVEL BENEFITS REDUCED COST TO OPERATE OPTIMISED SERVICE LEVELS HIGHER ASSET UPTIME MORE TIME ON TOOLS $ NEXT STEPS POC IN THE GULF OF MEXICO USING 5 YEARS OF HISTORICAL DATA HOW WE SET INVENTORY LEVELS TODAY - PRODUCTIONISATION - COMPLETE DEPLOYMENT - EXPANSION TO NEW ASSETS
  16. 16. Copyright of Shell International Aviation Business Diagnostics Shell Aviation provides fuel to over 7,000 aircraft, every 12 seconds to 2,500 airlines every day, therefore making the best decisions effectively and safely, are key factors to commercial and operational excellence Business Context  Focus on portfolio optimisation; right customer, right airports  Integrated operations requires integrated data platform  Historically, business users performed manual data integration steps with limited forecasting or analytical capability Solution  Develop pilot to extract, transform and visualise key normalised data before full production solution  Alteryx workflows enabled agile prototyping and translation of complex business logic  Integrated and normalised data displayed dynamically in Spotfire to support portfolio and commercial decisions – using data Business Impact  Improved visibility of key drivers such as seasonality  Improved sales tracking and operational profiles Next Steps DEPLOY AND EXPAND TO NEW MARKETS COMPLETE DEPLOYMENT AVIATION FUELS AEROSHELL LUBRICANTS
  17. 17. Copyright of Shell International Exploration Well Analytics (Brazil) Business Context  Shell Exploration is constantly evaluating new plays. One key area is Brazil.  As part of these activities, the Explorers conduct Drilled Hole Analysis (DHA) on exploration wells;  Historically, explorers received much of this data in spreadsheet form and spent a lot of time integrating the data Solution  The team gathered all of the various spreadsheets that the explorers were currently working with.  Developed a workflow using Alteryx to blend the data  Exposed the data in Spotfire to allow the explorers to get better insights based on the combined data set Business Impact  There are about 40 people on the presalt exploration team who now use the tool every day. Average saving is estimated at 10+ hours per week. “The new well portal is a real breakthrough because it allows us to cover major points that were missing before” ... “For years we have talked about doing this, but no-one was able to construct such portal until now. The portal can filter the data in different directions and allows us to obtain the most valuable data for the specific area we are looking for.” … “Thanks to this portal our valuable data is now safe and managed, this is not trivial when in the past we had several users make spreadsheet errors that created quite a loss for the team.” Alessandro Cantelli, Staff Geologist Brazil Growth Team 1712/21/2016*Benefits assumed starting in 2017 to be conservative. Assumes implementation of insights into business processes upon POC completion and continued successful deployment of solution
  18. 18. Copyright of Shell International Alteryx Feedback August 2016 18 “I’ve never clicked so much!” Data Scientist “Its ease of use and look-and-feel have made Alteryx be the most widely popular and liked analytics tool across the different Shell businesses, even those with limited analytics skills find it straight forward” Data Scientist “Brazil Wells Portal tool allowed us to quickly integrate data from various sources used in technical and quality control portions of the work flow, resulting in a new potential play concept in the Coqueiros (SK38) formation.” Geophysicist Alteryx is a fantastic tool! The flexibility and versatility has exceeded my expectations. We have been able to provide new insights into our data, causing the organization to think differently about certain use cases and opportunities – changing the possible into the probable. We are really just beginning our journey with Alteryx, but we are already seeing very positive returns. Business Analytics Leader “Alteryx enabled the project team to efficiently translate complex business logic into simpler more manageable elements. This allowed us to move really fast, deploy the first prototype sooner and get the tool into the hands of our business partners to start extracting value ahead of production timelines” Senior Commercial Project Manager – Aviation
  19. 19. Copyright of Shell International Digitalisation of the Workforce – Smart Apps Business Perspective  Persona-based Applications  Integration of Business Process Management & Analytics Technical Perspective  Connectivity to the Data Warehouse (SAP HANA)  Self-Service Advanced Analytics & Data Blending (Alteryx/Microsoft R/Python)  Data Visualisation in the Cloud (PowerBI/Spotfire/Tableau)?  Platform-as-a-Service Based Delivery (MS Azure)  Big Data Connectivity (Hadoop/Spark) August 2016 19Footer
  20. 20. August 2016 20Footer
  21. 21. #inspire16 alteryx.com/trial You can also achieve the incredible benefits described in this slide deck Download a FREETrial of Alteryx and experience self-service data analytics on your next data project

×