One of our favourite things is when our clients are able to get more value out of VERDAZO than they originally expected. We love watching visual analytics cultures take hold, as one project inspires another and users across organizations discover new uses for our product. At one intermediate Canadian producer, a project focused on minimizing downtime yielded a $12 million operational improvement on just a single group of wells. But that was just the start of what they did with VERDAZO. Here’s their story.
A producer in Calgary used our VERDAZO software as part of an initiative to improve their Well Review process. Their results went beyond their expectations: they were able to free up their engineers from days of manual Excel analysis in advance of a well review, saving time that exceeded $175,000 in annual costs. That initial project also spawned something the producer couldn’t have initially predicted: a commitment to analytics that eventually spread across the organization. New projects were created and an analytical culture took hold as the producer uncovered new efficiencies and value in unexpected places.
Our Oil & Gas clients continue to emphasize an increasingly acute need to do things smarter, simpler and more cost-effectively across their organizations. That’s one of the reasons why VERDAZO has been effective for them: it enhances their analytical capability and capacity no matter their economic constraints. This is important for any producer where the order of financial magnitude of a decision can be in the multi-millions of dollars. However, it may be even more critical for junior companies who often walk a thin financial line on the way to full capitalization and initial production. When Calgary-based Burgess Creek Exploration was founded in 2015, VERDAZO was its very first purchase.
In early 2016 we were pleased to be asked by CAPP (Canadian Association of Petroleum Producers), and several of our clients, to contribute to the recent Alberta Oil & Gas royalty review mandated by the NDP government after its election in 2015. Our invitation to participate was based on the recognition that a critical way to ensure productive dialogue between stakeholders, particularly those with different needs and perspectives, is to start from an accurate, transparent, data-driven analysis framework. As part of our contribution to the review, we used our VERDAZO software to provide rapid analysis on a variety of potential C* scenarios and the impacts they would have on the industry and its stakeholders.
It was particularly satisfying to be able to present our analyses to the panel stakeholders in an easily digestible visual form with our software. In our work with clients across the industry over the last decade, we’ve learned that being able to deliver sophisticated information visually is an effective way to build a data-driven consensus on the best course of action. Here at Verdazo Analytics, we’re very proud of the final outputs of the royalty review and thank CAPP (Canadian Association of Petroleum Producers) for including us in the process.
(Feb 2017, SPE Canada Unconventional Resources Conference, Calgary) Efforts to identify optimal completion technology and design parameters are complicated by the compounding impacts of broad statistical variability in operations, reservoir/fluid and completion/wellbore design. There are several analysis approaches available to identify and optimize key completion design parameters. Each approach offers limited insight on its own, but combining a set of approaches into a disciplined methodology can collectively present a unique understanding of optimal completion technology and design. This is the presentation for manuscript SPE-185077-MS presented at SPE Canada Unconventional Resources Conference on Thursday, February 16, 2017.
(Nov 2016, Haskayne School of Business, Calgary) This presentation outlines the opportunities that sophisticated data visualization software tools provide to oil & gas companies as they pursue analytic maturity and some of the key challenges they’ll face along the way. It offers insights into the way data visualization is being used to drive efficiencies, reduce costs, build consensus and overcome obstacles across the organization. Key case studies bring the concepts to life.
(May 2016, Canadian Operational Research Society (CORS) Conference) Increasingly companies are striving to optimize production and minimize costs. Analytics is increasingly becoming the secret weapon that companies use to identify downtime reduction opportunities, reduce costs and establish a competitive advantage. This presentation outlines visual analytic techniques and approaches that have helped oil and gas producers optimize production and reduce costs in challenging times.
(Dec 2015, SPE – Calgary Section) This presentation is the culmination of a decade of working with industry experts. It illustrates the complexities, technical considerations and analytic techniques that should be part of type-well curve development and use. If proper techniques are not used there can be significant impacts on reserves evaluations, development planning, production performance comparisons and completion optimization insights.
At Verdazo Analytics, we’ve always been a product of what we’ve been able to learn from our clients. The advancements in our VERDAZO product, services and methodologies have all been inspired and informed by the partnerships we’ve built over the last 10 years and our ‘crowdsourced’ approach to innovation.
As of today, we’re embarking on our biggest business journey to date.
I’m excited to announce that Verdazo Analytics has been acquired by Pason Systems Inc. Calgary-based Pason is a technology company offering fully integrated drilling data solutions, enabling users to collect, manage, report and analyze drilling data in order to optimize the performance and the cost-efficiency of their drilling activities.
At Verdazo Analytics, we are advocates of ‘Discovery Analytics.’ Discovery Analytics is an approach by which a data-driven investigation shifts with new insights revealed during the process. It’s not something calculated from start to finish. It evolves as you go, often bringing you to a point you couldn’t have predicted when you started. The results and decisions made are more pertinent and powerful as a result.
I think of this idea regularly when looking back on the work we’ve done with a producer here in Calgary. They initially used VERDAZO software as part of an initiative to improve their Well Review process. Their results went beyond their expectations: they were able to free up their engineers from days of manual Excel analysis in advance of a well review, saving time that exceeded $175,000 in annual costs.
But that was just the start.
Our Oil & Gas clients continue to emphasize an increasingly acute need to do things smarter, simpler and more cost-effectively across their organizations. That’s one of the reasons why VERDAZO has been effective for them: it enhances their analytical capability and capacity no matter their economic constraints. This is important for any producer where the order of financial magnitude of a decision can be in the multi-millions of dollars. However, it may be even more critical for junior companies who often walk a thin financial line on the way to full capitalization and initial production.
When Calgary-based Burgess Creek Exploration was founded in 2015, VERDAZO was its very first purchase.
The term Multivariate Analysis has gained in popularity – and hype – in the oil and gas industry, particularly as it pertains to completion analysis. The goal of Multivariate Analysis is typically to understand the relationship of multiple input variables to one or more outcomes, attempting to isolate the effect each individual input variable has on a particular outcome. Given the many geological and completion parameters that influence production profiles, it is not surprising that the industry is embracing Multivariate Analysis in its search for optimal completion designs. The use of this term has evolved to include a broad range of tools and techniques, such as:
Image source: Wikipedia
Multivariate analysis encompasses a broad range of tools, techniques, technologies and workflows… but not without notable dangers. I sat down with Tyler Schlosser, Director of Commodities Research, GLJ Petroleum Consultants, who has considerable experience and expertise in this area, for a conversation about Multivariate Analysis. Here’s what came out of our conversation…
Explore public data. Identify business opportunities by discovering insights into companies, plays and completion technologies.
Analyze your accounting data. Optimize financial performance by identifying operating cost issues and revenue opportunities.