Yokogawa & esimulation in the Midstream Industry Natural Gas Gathering & Processing Midstream Value Chain Modeling & Optimization Planning, Forecasting and Enterprise-Wide Modeling.
Value Chain Excellence esimevaluator a comprehensive, offline business modeling and optimization solution Why Settle for Less There are at least six capabilities that all midstream executives should have in place to effectively maximize gross margin positions: Capability Value Drivers Examples Designed specifically for planning, forecasting, and business-wide optimization applications in the midstream industry, esimevaluator is unique in that it models both the economic and physical interactions inherent in midstream enterprises from wellhead to sales points. The business modeling process begins with a detailed well decline model that provides volume projections for the budgeting and forecasting process: Each Well/CDP has formation-specific decline rate Wells/CDP grouped by sub-system Multiple growth wells with different contract-types for each subsystem Updated automatically using actual volume data The next step is to build the business model using the esimevaluator flowsheeting tool. The flowsheet visualization environment makes it easy to manage and account for gathering/processing interconnectivity. Economic and process interactions are modeled from the inlet producer contract/meters, through the processing equipment, and to the residue and liquid sales points. Supersystem interconnections are also modeled and optimized. The following is an example of a flowsheet rollup for a gathering and processing system. 1. Current Gross Margin 2. Sensitivity 3. What-If Scenario 4. Predicting the Future 5. Variance Understand the gross margin value being generated by each component of the business Understand the value associated with incrementing any or all aspects of the business Once current business performance is known, what-if scenarios are run to understand and quantify business improvement opportunities Predict future performance given well decline estimates, pricing estimates, and equipment performance capabilities Allows midstream managers to not only access price and volume impacts, but to dig much deeper into the business to identify aspects of the business that can be improved. Inlet Meter, Producer Contracts, Compression, Treating, Gas Plants, Fractionation Adding Volume, Changing Contract Terms, Gas Price Fluctuations, NGL Price Fluctuations, Value of Reducing Losses, etc Project Justification, Commercial Opportunity Assessments, Operational Improvement Assessment, New Gas Margin Estimates, Processing Disruption Response Planning, Budgeting, Rolling Forecasts, etc. given fluctuations in all aspects of the business Detailed variance analyses for any and all aspects of the business (to the inlet meter/ contract level) 6. Optimization Optimize business performance given fluctuations in all variables affecting gross margin System-wide/Value Chain optimization: right gas to right plants, rejection/recovery analyses, constraint management Armed with these capabilities, midstream executives can be sure that all groups (finance, commercial, operations, engineering, accounting, etc.) are working in a coordinated fashion to maximize shareholder value on a daily basis. By selecting any of the four gathering zones the user can view the physical and economic interactions configured for each gathering zone. The user can then click on any producer contract to see which meters are tied to it, their volume/composition, commercial terms, and the financial results of whatever case study is being run. esimevaluator s structured model approach makes it easy to update commonly changed data. Data updates can be accomplished through manual entry, cut-and-paste entry, or through direct connections to subsystems (measurement, accounting, SCADA, plant control systems). The Excel reporting tool makes it easy to compile and analyze case results, and to develop P&L forecasts.
esimevaluator TM Single Unified Model: esimevaluator allows the same model to be run in different modes to accommodate different functions. Accruals - Reconciliation mode fits the esimevaluator model to current conditions and is used for running end-ofmonth accruals. This is important because the accounting settlement takes about 3 weeks to compile after month close. However, the gatherer and processor may have to report month end results to the investment community on or about the 3rd day after close. The esimevaluator model can run this accrual very quickly and accurately. Planning / Budgeting / Forecasting / Commercial Management - Simulate mode is used to manage daily commercial activities such as plant mode determination, shrink estimates, current month forecast updates, rolling forecasts, determining net NGL/net gas equity forecasts for marketing / hedging, and price / volume sensitivity analyses. What-If Scenario - esimevaluator makes it easy to run What-if case studies to explore options to improve business performance. Any aspect of the business commercial or operational - can be changed and the sensitivity on gross margins calculated. Cases are stored to provide a decision audit trail. Optimization - Optimization mode allows for ranges and constraints to be set on key flows/variables and the esimevaluator model will determine how best to optimize profitability. Margin Analyzer - esimevaluator TM includes the Margin Analyzer which identifies what changed between periods and the impact of that each change on gross margin deltas. This is an extremely important development effort for esimulation and we believe this will change how midstream businesses are run (see example on following page). The value associated with using esimevaluator TM to manage the business can be compelling. The following are examples of how clients are realizing value from their business modeling investments: Commercial Business Improvements Gross Margin Improvement Improved Forecasting Accuracy 5% to 6% Accurately monitoring producer contract margins and mitigating a producer processing election situation Identifying a product pricing anomaly early and proactively modifying their hedging strategy to mitigate losses 1.2% 3.7% Spreadsheet error in settlement calculations 0.8% Production loss avoidance by more accurately predicting treating build-out requirements 7.9% Improved producer contract settlement measurements 16.7% esimevaluator s one model for multiple purposes functionality allows a common decision support tool to be leveraged by all the groups responsible for maximizing asset profitability. esimevaluator TM provides the cohesive forward-look that allows midstream management to predict, manage, and optimize their margin positions on a daily basis. esimulation, Inc. - Margin Analyzer Gross Margin Forecast 10,424,534 Gross Margin Actual 9,108,602 Gross Margin Delta (Actual - Forecast) (1,315,932) (1,336,627) Delta Gross Margin (Actual- Margin Analysis) 20,695 Actual to Forecast Variance Detail ($) Margin Differential Summary by Category ($) Prices (827,022) Gas Prices (1,142,675) NGL prices 120,181 Condensate 195,473 Recoveries (147,076) Plant 1 55,027 Plant 2 (136,937) Plant 3 (37,106) Plant 4 (28,060) Wellhead Volumes (34,925) Area 1 8,004 Area 2 397,866 Area 3 (197,657) Area 4 2,318 Area 5 (245,456) Inventory (27,973) Area 1 (16,541) Area 3 (11,432) Fuel (51,652) Cryo (182,019) Compressor (52,620) System Loss 182,987 Condensate 89,987 89,987 Gaslift 4,043 Area 1 3,884 Area 3 80 Area 4 80 Supersystem Volumes (228,509) Area 1 (16,234) Area 3 (44,269) Area 4 (106,745) Area 5 (40,796) Supersystem (20,465) Fees (28,815) Gathering Fee 7,497 Gas Transport Fee (178,745) Residue Gathering Fee 142,433 Residue Sales 6,458 Residue Sales 6,458 GPM (91,144) Area 1 (35,522) Area 2 45,660 Area 3 (87,014) Area 4 (24,911) Area 5 10,643 Proprietary to esimulation, Inc.
CEO Cognitive Enterprise Optimization TM esimoptimizer esimulation began in 2000 by offering its esimoptimizer rigorous, gas plant optimization solution. The solution bundles innovative, web-based process optimization software with strong chemical engineering services, to maximize asset value under all NGL margin conditions. The solution provides direct operator setpoint guidance every two hours on a web page (SaaS). esimvaluator esimevaluator is used by midstream companies to manage their gross margin positions from wellhead to sales points. esimevaluator is used for what-if scenario analyses, operational performance optimization, budgeting, forecasting, variance analyses, commercial planning, and project justification. Its unique margin analyzer identifies changes between periods and quantifies the impact of those changes on gross margin deltas. OIL AND GAS VOLUME TRACKER The Oil and Gas Volume Tracker captures data from multiple data sources (SCADA, measurement, 3rd party custody transfer meters, etc..), each with its own time horizon, and stores it into a large-scale data warehouse repository. The data is then available for detailed measurement analyses, balances, and loss identification. OPERATOR COMPETENCY IMPROVEMENT The midstream industry is challenged with determining the best way to improve operator competency, and maintain operator competency, for a small number of operators, working in remote locations, and on shifts. esimulation offers its esimtrainer solution and Yokogawa offers dynamic training simulators used in refining and petrochemical applications. MODULAR PROCEDURAL AUTOMATION Modular Procedural Automation combines consulting expertise with world class procedure control capabilities to capture, optimize, and retain, procedural knowledge in a process plant. The solution integrates procedures into the operator interface and alarm system for improved Solutions and Services situational awareness. Modular Procedural Automation can be used to automate, or guide operators through, startup and shutdown for gas plants and compression stations. Can also be used to help operators to implement esimoptimizer optimization targets. AUTOMATION PLATFORMS AND SERVICES Yokogawa offers multiple automation and control strategies, architectures, and solutions for every application size and complexity. Our distributed control systems (DCS) - fully scalable for midstream applications - are renowned for their reliability which translates into increased process uptime. Advanced Process Control strategies can serve to stabilize cryogenic processes and help the operator to achieve the esimoptimizer optimization targets. Yokogawa s multivariable control solution is ideal for reducing standard deviation in fractionation trains which results in better product splits and increased production. Yokogawa offers sophisticated SCADA solutions which can be used to manage gathering and supersystem interactions ANALYTICAL Yokogawa is recognized as a world leader in the field of analytical equipment. Yokogawa s chromatograph line is of particular interest for midstream applications. FIELD INSTRUMENTATION Yokogawa field instrument products includes a complete line of flow meters, pressure transmitters, differential pressure transmitters, temperature transmitters, level transmitters, Fieldbus instruments and safety measurement instrumentation. MAIN AUTOMATION CONTRACTOR Yokogawa is particularly adept at implementing large control system projects as the Main Automation Contractor (MAC). The MAC approach was developed in the refining and petrochemical industries whereby the automation supplier provides a complete automation solution - control rooms, wiring, field instruments, control systems, PLC s, analyzers, etc.
esimevaluator Oil and Gas Volume Tracker Measurement Data SCADA Data 3rd Party Meters Well Information Asset Information Component Level Balances Condensate Tracking Well Decline Model Current Production Forecast New Production Forecast Business Model Forecasting Commercial terms Contract changes New contracts Budget inputs Business Model Actual Accruals Flash Forecasts Corporate Planning Run price decks Udated monthly Annual budgeting Commercial Support Monthly forecast Equity NGL/residue 12 month rolling forecast Annual budget Actual-to-budget variance New opportunity evaluation Contract negotiation What-if case analyses Operations Support Plant models Supersystem planning Disturbance reponse Project justification What-if analyses esimulaton, INC. 17625 El Camino Real, Suite 200; Houston, TX 77058 Phone: 281-385-9384 http://www.esimulation.com YOKOGAWA CORPORATION OF AMERICA 12530 W. Airport Blvd., Sugar Land, TX 77478 Phone: 281-340-3800 Fax: 281-340-3838 http://www.yokogawa.com/us