Engage Reduce Costs

Challenge

Operators are constantly looking for ways to audit ticket volumes entered by haulers against tank height automation data from SCADA. Currently, operators do not have an automated way to audit the variance in real-time and most rely on manual spot checks, which is a hassle and takes an immense amount of time. In this case study, the operator set out to streamline their ticket validation process, by automatically rejecting tickets based on predetermined variance thresholds.

Solution

The operator implemented ENGAGE’s tank height validation capability, based on variance levels along with other pertinent data points collected during jobs. The variance levels are most crucial because the service provider invoices are determined by the number of barrels hauled and manually entered on each ticket. A positive variance indicates a potential overcharge from the hauler as the barrels actually pulled from the tank (calculated by ENGAGE using SCADA tank height data), may be lower than the barrels reported by the hauler. A number of tickets were rejected and sent back to the service providers to be corrected, which not only lowered costs but resulted in behavioral change with the haulers, who were then aware that their hauled volumes were being audited.

10.5% Cost Savings after 7 months by using ticket validation with ENGAGE

Reduce-Costs-Cost-Savings

Results

Variance results were examined over the course of seven months with nearly 2.5 million barrels hauled, comparing the difference in volumes reported through Cygnet and the hauler entered volumes for both water and crude. The variance between SCADA calculations and hauler entered volumes dropped from 14.3% to 3.8% within seven months on the ENGAGE platform. This resulted in a 10.5% cost savings in the month of September compared to variance levels at the beginning of the study, since rates are determined by the number of barrels hauled and manually entered on each ticket.

Challenge

Short loads have always been a pain point for operators. A less than full load not only limits productivity but fees are often added by haulers for short loads, which increases the cost of these jobs. Because of this, a close eye is always kept on the percentage of short loads for liquid transport.

Solution

ENGAGE’s order to cash solution was identified as a platform that provided the functionality to address their challenges. The operator pushes their SCADA data and other production information into ENGAGE’s predictive algorithms and based on predetermined parameters set by the operator, jobs are automatically scheduled for pick up and sent to their haulers in real-time. Both the operator’s operational control center and the hauler’s dispatch managers can view their scheduled orders, current jobs, and pending tickets, allowing for optimal planning and management.

Crude haul short loads reduced by 34% after implementing ENGAGE

Graph of Crude Hauling Short Load Reduction With ENGAGE

Results

ENGAGE reduced crude haul short loads by 34%. In the four months prior to ENGAGE, 32% of all crude hauls resulted in a short load (loads under 180 barrels), however, this number decreased to 21% by using ENGAGE. As a result, the cost savings for this E&P on their crude hauls has been significant.

Challenge

A large E&P company was seeking ways to reduce LOE cost, specifically the cost involved with water transport. The E&P wanted more transparency into what their vendors were doing, to lower windshield time and increase the amount of water taken on each load.

Solution

This E&P company began using the ENGAGE platform to order their water hauls. The solution pushed the orders directly to their service provider and allowed them to track route times, water transport, and even approve tickets quickly and efficiently. Ultimately, this change allowed them to see a significant cost reduction on their invoices due to decreasing short hauls thus using fewer trucks.

Water transport invoices were reduced by 8.5% with ENGAGE

Average-Invoiced-BBLS

Results

ENGAGE reduced crude haul short loads by 34%. In the four months prior to ENGAGE, 32% of all crude hauls resulted in a short load (loads under 180 barrels), however, this number decreased to 21% by using ENGAGE. As a result, the cost savings for this E&P on their crude hauls has been significant.

Challenge

A small service provider was spending a significant amount of money on carbon copy paper tickets for their operations. In addition to the cost, the ticket books were tough to read, prone to damage and were difficult to edit if a mistake was made.

Solution

By adopting the ENGAGE platform the service provider was able to transition to a completely digital solution from the order of service to completion. Soon after, the company implemented the software to all aspects of its operation and completely stopped using paper tickets.

Going Digital with ENGAGE eliminated $24,288 per year in carbon copy ticket costs for one service provider

Carbon-Copy-Tickets

Results

This service provider had 11 trucks and was spending $184 per month for each truck on carbon copy paper tickets. This equated to $2,024 per month total or $24,288 per year. By doing all their jobs digitally, this company was able to realize massive savings per year in paper ticket costs while also reducing error rates and invoicing clients in a more timely fashion.