This document introduces pipeline analytics capabilities that can help improve operational performance for oil and gas pipeline companies. It discusses opportunities in regulatory compliance, safety management, pipeline integrity management, and plant reliability management. Required business capabilities include learning from operating experience to anticipate conditions, identify unusual situations, and drive improved results. Necessary analytical capabilities combine data with models in areas like prediction, classification, and optimization to impact compliance, integrity, safety, and capital control. Examples show how predictive analytics could demonstrate and predict compliance performance, increase project control, and predict plant or equipment failures. Feedback is requested from pipeline professionals to refine these ideas.

1. INTRODUCING
PIPELINE ANALYTICS
Capabilities to Improve Operating
Performance of Oil & Gas Pipeline
Companies

2. Opportunities for Pipeline Analytics
REGULATORY COMPLIANCE

3. Regulatory Compliance Management
How do we find
the weak links in our
compliance process?
Our audit performance
is not acceptable!
What am I
missing?
Is there some sort
of a pattern?
VP Operations
Regional Field Manager

4. Opportunities for Pipeline Analytics
SAFETY MANAGEMENT

5. Monitoring Field Safety Performance
We have lots of data from
our incident reports.
But, how we can connect the dots
to see changing
conditions so we can
prevent future incidents?
With all this data
available….
How can I find the
factors that lead to
safety incidents?
Director of Process Safety
Division Superintendent

6. Opportunities for Pipeline Analytics
PIPELINE INTEGRITY MANAGEMENT

7. Pipeline Integrity Management
How much confidence
do we have
with the latest pigging results?
Are we able to see any patterns linking
defects to some sort of root cause?
We have all this
pigging and
maintenance data…
How can I find
something useful?
Director Asset Integrity
Integrity Engineer

8. Opportunities for Pipeline Analytics
PLANT RELIABILITY MANAGEMENT

9. Plant Reliability Management
Haven’t we seen this
pattern of compressor
shutdowns before?
Why can’t we seem to learn
from our own experience?
Out maintenance
systems collect all
this data …
It is tough to find any
patterns.
Plant Reliability Manager
Plant Maintenance Engineer

10. Introducing Pipeline Analytics
REQUIRED BUSINESS CAPABILITIES

11. Business Capabilities
In everything we do, learning and experience
raises our capability to …
• Anticipate future conditions
• Identify unusual situations
• Drive improved results
So What?

12. Business Capabilities
Pipeline companies can learn from their operating
experience….
• Connect the dots in your business and operations
• Learn the combination of conditions that change your risk profile
• Identify emerging conditions where proactive management is appropriate
• Learn what levers to pull to mitigate risks
• Understand what factors are driving your results
• Improve budgeting processes
• Change how you allocate resources
• Turn historical data into leading indicators of operations
• Become proactive
• Anticipate the future with more confidence
That’s So What!

13. Business Capabilities
Example Opportunities for Pipeline Companies
•
Predict future conditions, risks or events
•
•
•
•
Classify current operating conditions and events
•
•
•
•
Compliance Performance
Safety Incidents
Integrity Risks
Normal vs abnormal
Proactively reduce or eliminate negative impacts
Leading indicators of future incidents or changing risks
Optimize resource allocation
•
•
•
Pipe replacement spending
Maintenance plans
Staff development

14. Introducing Pipeline Analytics
REQUIRED ANALYTICAL
CAPABILITIES

15. Analytical Capabilities
Combine Data with Math Models and a Business Domain

16. Analytical Capabilities
Drive
Enable
Impact
Results
Value
Analytical
Capabilities
Business
Capabilities
Business
Outcomes

17. Analytical Capabilities
Pipeline Analytics provides the Capability to...
• Predict
• Classify
• Optimize
In areas relevant to your pipeline operations
Savvy operators can leverage this Capability to
proactively improve process performance in areas such as …
•
•
•
•
Compliance
Integrity
Safety
Capital Control

18. Example of Pipeline Analytics
PREDICTIVE COMPLIANCE EXAMPLE

19. Predictive Compliance
Demonstrate and Predict Compliance Performance
Functional
Managers
How are we doing?
How can we improve?
Why are we getting these results?
What is likely to be our future results?

20. Predictive Compliance
Demonstrate and Predict Compliance Performance
Compliance
Data
Integrated Data
Analytic Techniques
Monitoring and
Learning
Logistic
Regression
Classification
Standard Data
Format
Principal
Components
Analysis
Control Charts
Assume an Indicator has been designed to measure Compliance Performance
Values less than 90 are out of range based on Strategic Objectives

21. Example of Pipeline Analytics
PREDICTIVE CAPITAL
MANAGEMENT

22. Predictive Capital Management
Increase Project Control Levels

23. Predictive Capital Management
Increase Project Control Levels
Project Performance
Data
Integrated Data
Analytic Models
Monitoring and
Learning
Logistic
Regression
Classification
Standard Data
Format
Principal
Components
Analysis
Control Charts
Assume an Indicator has been designed to measure Project Performance
Values less than 80 are out of range based on Strategic Objectives

24. Example of Pipeline Analytics
PREDICTIVE PLANT MONITORING

25. Predictive Plant Monitoring
Predict Plant or Equipment Failures

26. Predictive Plant Monitoring
Predict Plant or Equipment Failures
Plant Performance
Data
Integrated Data
Analytic Models
Monitoring and
Learning
Logistic
Regression
Classification
Standard Data
Format
Principal
Components
Analysis
Control Charts
Assume an Indicator has been designed to measure Plant Performance
Values less than 80 are out of range for Reliability & Availability and above 60 for Failure Probability based on Strategic Objectives

27. Introducing Pipeline Analytics
GETTING STARTED

28. I am seeking feedback from Pipeline Professionals in
general, about the need and opportunities for “Pipeline
Analytics” to help companies improve their performance
and address some of their many challenges.
I would enjoy engaging in discussions with you to refine
these ideas and to make a useful contribution to the
pipeline sector.
Please Provide Comments and Feedback to:
Mark Peco
mark.peco@gmail.com