Tuesday, April 15, 2008

The Natural Gas Industry Lags When it Comes to Integrating Data

Even with all the technological advances over the last ten years, the natural gas industry still struggles when it comes to integrating operational and commercial data. The industry is state-of-the-art in tracking SCADA and real time operational data. Much can also be said about the commercial side of the business with its scheduling, nomination, and allocation processes. However, when it comes to merging real-time operational data with commercial accounting data in order to get a real-time financial look at a pipeline, the industry lags.

Departments within an organization are often very distinct and operate with different priorities. Operations focuses on running the pipeline and would like to have commercial/accounting data to make better decisions. Commercial and accounting focus on revenue and need to see how they are doing right now (before official measurement close). While they both need each other’s data, they are often hesitant to share it based on the fear that it may be misinterpreted. It’s not uncommon to have two different numbers being reported because the data was viewed differently. That just causes frustrating reconciliations – and often finger pointing – all trying to get to the “real” number.

Recent software advances make this integrated data more readily available – without the grinding behind-the-scenes effort historically needed to consolidate the information. However, companies need to commit to a process, tear down the silos within the organization, and do some up-front work without grousing about “how this didn’t work in the past.”

The result will be a world class organization that can have its data available to all concerned parties – without worrying about whether the number is right, or whose data is better. It will all be consistent.

Robert W. Young
Product Manager – Commercial Applications

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