Pathway to Precision: The Value of System Integration in Energy Planning
Discover how a major leading North American oil producer utilized Quorum’s Val Nav and Execute suite of solutions to drive operational excellence during a significant transformation. Learn how the operator's Senior Corporate Development Engineer explains how Quorum solutions supported their journey to streamline workflows, enhance decision-making, and improve visibility across operations.
Overview
The operator is a leading exploration and production company. It produces around 200,000 BOE/d with plans to reach 260,000 BOE/d in five years. Following acquisitions and significant asset mix changes, the company has become the largest landowner and E&P company in North America.
Enabling Strategic Goals
Quorum’s Val Nav and Execute have been instrumental in advancing the operator’s strategic goals. Val Nav has enhanced financial model accuracy and returns on capital, while Execute has optimized capital efficiency, supporting more strategic fund allocation. Together, these tools have improved balance sheet performance.
Evolution of Capital Management Systems
The operator’s capital management systems evolved through three phases:
- The Excel Era: Initially, capital planning used Excel spreadsheets, facing challenges with data quality and change tracking.
- The Data Quality Renaissance: Microsoft data cubes and esi.Execute improved data integrity but had user interface issues.
- Evolving with Execute: The operator now uses Quorum’s Execute platform for budgeting, forecasting, capital tracking, AFE management, scheduling, and well data management. This phase, guided by Quorum, features bulk updates and simplified reporting.
The Power of Integration
Integration between Val Nav and Execute enhances forecasting accuracy and transparency. During the monthly reforecasting process, asset teams update production forecasts in Val Nav while refining schedules and capital forecasts in Execute. This synchronization ensures clear execution plans and transparency from development to the executive level.
Evolution of Drilling Inventory Management
The operator’s digital transformation includes the adoption of Execute’s Well Delivery module, enhancing the tracking and reporting of drilling inventory. The module offers a robust and reliable solution for managing active locations, featuring a familiar interface along with powerful change tracking, field logic, and reporting capabilities.
Quantitative Results
Since adopting Quorum’s Execute, the operator has achieved a 50% reduction in variance between capital forecasts and actuals and saved 5 hours per month for each project engineer responsible for managing and forecasting capital. This optimization has unlocked over $6 million in additional capital for monthly deployment. Val Nav has maintained extraordinary precision in production forecasts, with a monthly variance of less than 0.5% over 7 years, even with an 85% asset mix turnover. This impressive track record showcases Val Nav’s versatility across diverse oil and gas assets and reinforces its reliability as a core tool for business planning.
Implementation of Enersight
With robust processes in place, the operator now focuses on new challenges, including 15-20 years of long-cycle inventory and facility constraints. To optimize capital spending and long-range planning, the operator has selected Enersight for its rapid scenario analysis and network modeling capabilities. Integrated with Val Nav and Execute, Enersight will streamline decision-making and maximize asset value.
What We Learned
By integrating data with Quorum’s solutions, the operator streamlined workflows, enhanced decision-making, and improved visibility. Supported by Val Nav, Execute, and Enersight, the operator maximizes shareholder value and drives operational excellence during a period of transition and growth.
Discover More
Learn how Quorum can revolutionize operations —download the case study for key insights.
Book a demo to explore how Val Nav, Execute, and Enersight integrates into your workflow.