SOLV Provides Accurate Risk Estimates for Oil and Gas Customers with Monte Carlo-based Simulation—Saves Customer US$550 Million
 
 

SOLV Provides Accurate Risk Estimates for Oil and Gas Customers with Monte Carlo-based Simulation—Saves Customer US$550 Million

SOLV is an engineering consultancy and software developer based in the United Kingdom. It provides flow measurement engineering and consultancy services for fiscal, allocation, and process flow measurement in upstream oil and gas production, pipelines, transportation, downstream petrochemical refining, and power generation.

SOLV’s experience stems from North Sea oil and gas, fiscal, and allocation flow measurement, which is subject to stringent regulation by the UK Department of Environment and Climate Change, the Norwegian Petroleum Directorate, and other regulatory bodies.

 
 

 
 

Challenges

A word from SOLV Limited

  • "Oracle Crystal Ball enables us to use Monte Carlo simulation to estimate allocation uncertainties in oil and gas flows and advise oil and gas clients on minimizing risk exposure." – Martin Basil, Senior Flow Measurement Consultant, SOLV Limited

  • Provide accurate estimates of uncertainty around the measurement of oil and gas output from pipelines to enable global oil and gas organizations to manage exposure to risk
  • Assess accuracy of oil and gas allocation to multiple partner organizations, working in oil fields with shared interest throughout the world
  • Simplify the process using Monte Carlo simulation for calculating risk and improve accuracy of allocation estimates for oil and gas companies that use a multiphase flow meter (MPFM)—a device that measures simultaneous flow of oil, gas, and water before fluid combination is pumped to a processing plant—and for customers that measure partially separated oil and gas with a test separator

Solutions

Oracle Product and Services

  • Deployed Oracle Crystal Ball to perform Monte Carlo simulations to more accurately measure the uncertainty around oil and gas flow measurement and calculate the probability that measurements and allocations of oil to individual partners are correct
  • Saved one oil and gas client US$550 million by providing better risk estimates with the help of Oracle Crystal Ball
  • Enabled worldwide oil and gas clients to more accurately estimate financial risk due to the ability to more accurately price final oil and gas output quantities
  • Reduced oil and gas metering uncertainty with Oracle Crystal Ball to improve allocation accuracy of outputs between multiple partner organizations
  • Provided what-if scenarios with Oracle Crystal Ball simulations to simplify the process of calculating risk for oil and gas clients and enable larger, more complex simulations with multiple dependencies and complex equations, not possible with conventional statistical methods
  • Evaluated uncertainty in allocation of crude oil, condensate, and liquefied petroleum gas exports back to owners of three producing fields with shared interests in Algeria

Why Oracle

“Oracle Crystal Ball does exactly what we need it to do—it is powerful enough to perform complex, large-scale Monte Carlo simulations to help our clients manage their risk exposures. We looked at competitive products, but we did not find any better alternatives,” said Martin Basil, senior flow measurement consultant, SOLV.