digitalization of the supply chain in oil &...

Digitalization of the Supply Chain in Oil & Gas

Chris Welsh

CEO

© 2019

What is OFS Portal?

Established in 2000 by a group of ~20 globally diverse oilfield services Suppliers

Best in Class Standard Interoperability Legal Framework for Digital Integration

400+ Oil Companies & NOCs

45+ eCommerce Networks

Standard catalog process for all Suppliers & Operators

Standard Transaction Management using open industry standards

Scalable supply chain digitalization for the global Oil & Gas industry

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© 2019

Members

© 2019

F

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Digital Integration Between Operator’s P2P & Supplier’s O2C

FULFILLMENT ORDERING SOURCING PAYMENT

DATA PROTECTION & OWNERSHIP

© 2019

THE OFS PORTAL AGREEMENTS INTER-LOCK TO PROVIDE AN END TO END DIGITAL FRAMEWORK FOR TRANSACTING SECURELY, IMPLEMENTING STANDARDS AND REDUCING COSTS TO ALL TRADING PARTNERS

SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement



400+

45+

© 2019

Digital Integration Between Operator’s P2P & Supplier’s O2C

FULFILLMENT ORDERING SOURCING PAYMENT

DIGITAL TRANSACTIONS

DATA CATALOGS

DATA PROTECTION & OWNERSHIP F

O

C

U

S

© 2019

Services vs. Materials Procurement

EXPLORATION DRILLING PRODUCTION PROCESS TRANSPORT REFINING MARKETING

Services Materials

75% 60%

© 2019

60-70% OF SPEND CAN BE DIGITALLY INTEGRATED

OFS Portal

Suppliers

Other Suppliers

Typical Operator E&P Spend

OFS Portal Members

Other Suppliers

© 2019

eCommerce Adoption

© 2019

eCommerce Adoption

80%

8%

8%

2%

2%

© 2019

Oil and Gas

Standards

Many Industry Standards Bodies

eInvoice (eBusiness) = PIDX

© 2019

Sourcing RFI/RFP Bid Response

Master Data Management

Contract Management

Catalogs Catalog Data

Request for Quote Quote Provided

Purchase Requisition

Purchase Order PO Change/Confirmation

Goods Receipt/Service Entry Field Ticket Response

Field Ticket/Delivery

Invoice Response Invoice

Payment Remittance Advice Payment Received

P2P O2C D

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g

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t

a

l

P

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o

c

u

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m

e

n

t

© 2019

NORTH SEA

NORTH SEA

Sourcing RFI/RFP Bid Response

Master Data Management

Contract Management

Catalogs Catalog Data

Request for Quote Quote Provided

Purchase Requisition

Purchase Order PO Change/Confirmation

Goods Receipt/Service Entry Field Ticket Response

Field Ticket/Delivery

Invoice Response Invoice

Payment Remittance Advice Payment Received

P2P O2C D

i

g

i

t

a

l

P

r

o

c

u

r

e

m

e

n

t

© 2019

Oil and Gas Operator Benefits

P-Card

Invoice Only

Invoice Against Contract

Purchase Order

Catalogs

IOT BlockChain

OFS Portal

Integration

Model Starts

Here © 2019

COST-EFFECTIVE ECOMMERCE Implementing eCommerce with OFS Portal is cost effective because you implement one procurement model which encompasses the majority of your key oilfield Suppliers.

FINANCE We give you the power to support greater volumes with fewer errors combined, with time saved. The OFS Portal Price Book automates price validation, classification and spend analytics, and increases contract compliance, giving you full advantage of your eCommerce investment.

PROCUREMENT Our automation of P2P creates a layer of eCommerce transparency for both internal use and external partners, allowing for more accurate forecasting.

DATA PROTECTION ACCELERATES ONBOARDING OFS Portal’s legal framework between Suppliers, Networks and Operators is viewed as an industry best practice and protects the confidentiality of data for both buyers and sellers. When Suppliers know their sensitive data will remain safe, the onboarding process is faster and more streamlined.

COMPLIANCE OFS Portal delivers premium supply chain knowledge to increase compliance and decrease risk.

© 2019 Oil and Gas Operator Benefits

Operators Accelerating

Digitalization

Cloud Enabling Many

More Innovative Service

Providers

Community

Growth

0

50

100

150

200

250

300

350

400

450

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

YTD

Cumulative Agreements Agreements by Year

Operator Electronic Data Agreements

© 2019

400+ Operators

45+ Networks

Community

Growth

© 2019

Demand on Suppliers

NOC P2P

Petrobras

NOC P2P

BAPCO

P2P

eInvoice

Atinum E&P

Bill Barrett

Bonanza Creek Energy

Brigham Resources

Cantera Energy

Chesapeake Energy

Chief Oil & Gas

Common Resources

Compass Production Partners

Contango O&G

Continental Resources

Crescent Point Energy

Diamondback Energy

E&B Natl Resources

Eagle Rock Energy

Eclipse Resources

Emerald Oil

Energy XXI

Enerplus (US)

EnerVest

EOG Resources

Exco Resources

Fairways

Fuse Energy

Gastar Exploration

Great Western

Huntington Energy

Jetta

Legacy Reserves

Legado Resources

Nearburg Producing

Northstar Offshore

Parsley Energy

PetroQuest

PostRock Energy

QEP Resources

Quantum Resources

Quicksilver Resources (US)

Resolute Natural Resources

Rio O&G

Rosetta Resources

Samson

Scout Energy

Tapstone Energy

Texas Petroleum Investment

Trinity River Energy

Tug Hill

Urban O&G

Venoco

Wagner Oil Company

Wildhorse Resources

Windsor Energy

WPX Energy

P2PApache

P2PBAPCO

Chevron

RFx P2PConocoPhillips

Marathon

P2P

Anadarko US

Anderson Energy

Antero Resources

ARC Resources

ARD Operating LLC

Arrington O&G

Aspenleaf Energy Ltd

Barrick Energy

Bayswater E&P

Baytex Energy

Black Hills E&P


Bluestone Natural Resources II LLC

Buckeye Partners

Cabot Oil & Gas

Caelus Energy

California Resources

Canadian Natural Resources

Carrizo Oil & Gas

Cenovus

Centennial Resources

Citrus Energy

Clayton Williams Energy

CML Exploration

COG Operating

Corex Resources

Covey Park

Craft Oil Ltd.

Creek Oilfield Service LLC

Crestone Peak Resources Op. LLC

DCP Midstream

Denbury

Devon

DistributionNow

Encana

Endeavour Energy Resources

EnerPlus (Canada)

Ember Resources

Endurance Energy

EP Energy

ExxonMobil

FIML Natural Resources

Flour de Lis Energy LLC

Forest Oil

Fourpoint Energy LLC

Four Corners Petroleum II LLC

Freeport - McMoRan Oil & Gas

GeoSouthern Energy

GEP Haynesville

Grizzly Oil Sands

Gulf Pine Energy Partners Ltd

Headington Energy Partners LLC

Harvest Energy

Hemisphere Energy Corp.

Hess

Highmount E&P

Hunt Oil

Indigo Minerals

Inflection Energy

J. Cleo Thompson

Le Norman Operating

Lewis Energy

Liberty Resources

Lime Rock Resources Op. Co. Inc.

Linn Operating

Long Run Exploration

Manitok Energy

Marathon Oil

Matador Production

McPherson Exploration

MD America

Memorial Production Operating LLC

Memorial Resource

Development

Mewbourne O&G

MFC Resources

Mounteaineer Keystone LLC

MRC Global (US) Inc.

Newfield Explor

Nexen

Noble Energy

Oasis Petroleum

Occidental O&G

Pacesetter Drilling

Pennsylvania General Energy Co. LLC

Perpetual Energy

PDC Energy

Pengrowth

Penn Virginia

Penn West Petroleum

Permian Resources

Petra Harvester Oil & Gas

Petrobank

Petrus Resources

Peyto Exploration

Pioneer

Progress Energy

Quicksilver Resources (Can)

Rex Energy

Rice Energy Inc.

Ridgeback Resources Inc.

RMP Energy

RSP Permian LLC

Sabine O&G

Sandridge

Sentinel Peak Resources LLC

Shale Inland (Sunbelt Supply)

Sheridan Production

Sinopec Daylight

SM Energy

Stone Energy

Southwest Energy

Statoil US

Sundance Energy1

Surge Energy

Swift Energy

Synergy Resources

Talisman Energy

TAQA North

Trey Resources

Trioil Resources

Tundra

Ultra

Vanguard Natl Resources

Vine Oil & Gas

Warren Resources Inc.

White Rock Oil & Gas LLC

Whiting Petroleum

Wyatt Oil & Gas

XOG

Yates

P2P

BHP Billiton

BP

Cairn India

Exxon

FMC Technologies

Murphy E&P US

Phillips66

TransCanada

eInvoice NAL Resources

P2P

Operator

P2P

Advantage Oil & Gas

Alberta Tubular

Apache

Arsenal Energy

Birchcliff Energy

Blackbeard Operating LLC

Blackspur Oil Corporation

Boulder Energy

Bonavista

Breitburn Energy

Burnett Oil

Canbriam Energy Inc.

Cardinal Energy

Command Fishing

Crew Energy

Dee Three Exploration

Delphi

Deltastream Energy Corporation

Energen

Fidelity E&P

Finley Resources

Fieldwood Energy

Gear Energy

Halcon Resources

Hilcorp Energy

Huron Resources Corporation

Husky Energy

Imaginea Energy

Jones Energy

Journey Energy

Jupiter Resources

Kaisen Energy Corp.

Kelt Exploration

Laredo Petroleum

Modern Resources

Murphy Oil (Canada)

NEP Canada

Northern Blizzard

Omers Energy

Our Preto Resources Inc

Painted Pony Petroleum

Petro-Hunt

Pinecrest Energy

Regent Resources

Rife Energy

Rock Energy

Saguaro Resources Ltd

Second Wave Petroleum

Seven Generations Energy

Sitka Exploration Ltd

Spur Petroleum Ltd

Spurs Resources

Strategic Oil & Gas Ltd

Sydco Energy Inc

Talos Energy LLC

Tamarack Valley Energy

Teine Energy

TORC Oil & Gas Ltd

Tourmaline Oil

Trilogy Energy

Twin Butte Energy

Vantage Energy

Velvet Energy

Venado

Vermilion Energy

West Valley Energy

Whitecap Resources

P2P

Consol Energy

ENI

Repsol

Shell

Statoil

Total

RFx

eInvoice

RFx

RFx

eInvoice TexLand Petroleum LP

Operator

LogisticsHusky Energy

BP

Nexen

Operator

Operators

Network

Direct Integration

Operator

Operator

Created a Complex Web for Suppliers

© 2019

Supplier Managed Catalogs

0

1000

2000

3000

4000

5000

0

450,000

900,000

1,350,000

1,800,000

2,250,000

2011Q4

2012Q2

2012Q4

2013Q2

2013Q4

2014Q2

2014Q4

2015Q2

2015Q4

2016Q2

2016Q4

2017Q2

2017Q4

2018Q2

2018Q4

2019Q2

Number of Catalogs and Items

Catalogs Items

© 2019

COMPLEXITY INCREASING IN THE DIGITAL WORLD




Government Mandates on eInvoicing

CFDI Mexico, DIAN Colombia, FatturaPA

Italy, EHF Norway

What is the impact on the deployment for

industry standards?

Are the government standards fit for

purpose for major global industries?

When to adopt the access point model?

PIDX

PIDX

ERP

ERP

ERP

© 2019

CEF eDelivery

4 Corner Model

© 2019




Government Mandates on eInvoicing

Italian FatturaPA

Norwegian EHF/PEPPOL

Mexican CFDI

Colombian DIAN

PIDX GOV

ERP

© 2019

5 Corner Model

Fiscal and International Tax Compliance




Government Mandates on the Horizon

Germany

Portugal

Argentina

Bolivia

Guatemala

Paraguay

Panama

Dominican Republic

Vietnam

India

PIDX GOV

ERP

© 2019

5 Corner Model

Fiscal and International Tax Compliance

Today in Oil & Gas © 2019

Digitalization of the Entire Business

Cloud, Edge, IoT, A.I., Robotics

BlockChain

APIs, API Management

PaaS

MicroServices

Data Lakes

Infinite Interconnectivity

Cyber Security

Infinite Integration © 2019

PaaS

Private

Cloud

Public

Cloud

P2P

O2C

IoT

Sensors

APIs

APIs

APIs

APIs

B2B

B2B

B2B

B2B

SQS

API MGT

IBN

APIs

© 2019

Security Standards

Data Standards and Data Ownership

B2B Transaction Standards

API Integration Standards

Key Issues to Facilitate Interconnectivity

KEY

ISSUES

Hybrid Model

Industry Business Network

© 2019

Without a clear Industry Business Network

Hybrid of Connectivity and Data Access

B2B for Transaction Management

API for Data Access and B2B Initiation

*60%

*40%

*Mark O’Neill, Gartner Analyst, CLEO Connect, September 2017

Security In An Increasingly Digital World




Through a contractual agreement, which sets a foundation in

standards and data protection, OFS Portal instills the promotion of

standard protocols and adoption of legal principles to protect oil

trading partners, networks and their data, thereby facilitating the

global use of eCommerce by preserving the confidentiality of

commercial trade secrets and other electronically exchanged data. 400+

45+

© 2019

Demand on Suppliers

NOC P2P

Petrobras

NOC P2P

BAPCO

P2P

eInvoice

Atinum E&P

Bill Barrett


Brigham Resources

Cantera Energy

Chesapeake Energy

Chief Oil & Gas

Common Resources

Compass Production Partners

Contango O&G

Continental Resources

Crescent Point Energy

Diamondback Energy

E&B Natl Resources

Eagle Rock Energy

Eclipse Resources

Emerald Oil

Energy XXI

Enerplus (US)

EnerVest

EOG Resources

Exco Resources

Fairways

Fuse Energy

Gastar Exploration

Great Western

Huntington Energy

Jetta

Legacy Reserves

Legado Resources

Nearburg Producing

Northstar Offshore

Parsley Energy

PetroQuest

PostRock Energy

QEP Resources

Quantum Resources

Quicksilver Resources (US)

Resolute Natural Resources

Rio O&G

Rosetta Resources

Samson

Scout Energy

Tapstone Energy

Texas Petroleum Investment

Trinity River Energy

Tug Hill

Urban O&G

Venoco

Wagner Oil Company

Wildhorse Resources

Windsor Energy

WPX Energy

P2PApache

P2PBAPCO

Chevron

RFx P2PConocoPhillips

Marathon

P2P

Anadarko US

Anderson Energy

Antero Resources

ARC Resources

ARD Operating LLC

Arrington O&G

Aspenleaf Energy Ltd

Barrick Energy

Bayswater E&P

Baytex Energy

Black Hills E&P


Bluestone Natural Resources II LLC

Buckeye Partners

Cabot Oil & Gas

Caelus Energy

California Resources

Canadian Natural Resources

Carrizo Oil & Gas

Cenovus

Centennial Resources

Citrus Energy

Clayton Williams Energy

CML Exploration

COG Operating

Corex Resources

Covey Park

Craft Oil Ltd.

Creek Oilfield Service LLC

Crestone Peak Resources Op. LLC

DCP Midstream

Denbury

Devon

DistributionNow

Encana

Endeavour Energy Resources

EnerPlus (Canada)

Ember Resources

Endurance Energy

EP Energy

ExxonMobil

FIML Natural Resources

Flour de Lis Energy LLC

Forest Oil

Fourpoint Energy LLC

Four Corners Petroleum II LLC

Freeport - McMoRan Oil & Gas

GeoSouthern Energy

GEP Haynesville

Grizzly Oil Sands

Gulf Pine Energy Partners Ltd

Headington Energy Partners LLC

Harvest Energy

Hemisphere Energy Corp.

Hess

Highmount E&P

Hunt Oil

Indigo Minerals

Inflection Energy

J. Cleo Thompson

Le Norman Operating

Lewis Energy

Liberty Resources

Lime Rock Resources Op. Co. Inc.

Linn Operating

Long Run Exploration

Manitok Energy

Marathon Oil

Matador Production

McPherson Exploration

MD America

Memorial Production Operating LLC

Memorial Resource

Development

Mewbourne O&G

MFC Resources

Mounteaineer Keystone LLC

MRC Global (US) Inc.

Newfield Explor

Nexen

Noble Energy

Oasis Petroleum

Occidental O&G

Pacesetter Drilling

Pennsylvania General Energy Co. LLC

Perpetual Energy

PDC Energy

Pengrowth

Penn Virginia

Penn West Petroleum

Permian Resources

Petra Harvester Oil & Gas

Petrobank

Petrus Resources

Peyto Exploration

Pioneer

Progress Energy

Quicksilver Resources (Can)

Rex Energy

Rice Energy Inc.

Ridgeback Resources Inc.

RMP Energy

RSP Permian LLC

Sabine O&G

Sandridge

Sentinel Peak Resources LLC

Shale Inland (Sunbelt Supply)

Sheridan Production

Sinopec Daylight

SM Energy

Stone Energy

Southwest Energy

Statoil US

Sundance Energy1

Surge Energy

Swift Energy

Synergy Resources

Talisman Energy

TAQA North

Trey Resources

Trioil Resources

Tundra

Ultra

Vanguard Natl Resources

Vine Oil & Gas

Warren Resources Inc.

White Rock Oil & Gas LLC

Whiting Petroleum

Wyatt Oil & Gas

XOG

Yates

P2P

BHP Billiton

BP

Cairn India

Exxon

FMC Technologies

Murphy E&P US

Phillips66

TransCanada

eInvoice NAL Resources

P2P

Operator

P2P

Advantage Oil & Gas

Alberta Tubular

Apache

Arsenal Energy

Birchcliff Energy

Blackbeard Operating LLC

Blackspur Oil Corporation

Boulder Energy

Bonavista

Breitburn Energy

Burnett Oil

Canbriam Energy Inc.

Cardinal Energy

Command Fishing

Crew Energy

Dee Three Exploration

Delphi

Deltastream Energy Corporation

Energen

Fidelity E&P

Finley Resources

Fieldwood Energy

Gear Energy

Halcon Resources

Hilcorp Energy

Huron Resources Corporation

Husky Energy

Imaginea Energy

Jones Energy

Journey Energy

Jupiter Resources

Kaisen Energy Corp.

Kelt Exploration

Laredo Petroleum

Modern Resources

Murphy Oil (Canada)

NEP Canada

Northern Blizzard

Omers Energy

Our Preto Resources Inc

Painted Pony Petroleum

Petro-Hunt

Pinecrest Energy

Regent Resources

Rife Energy

Rock Energy

Saguaro Resources Ltd

Second Wave Petroleum

Seven Generations Energy

Sitka Exploration Ltd

Spur Petroleum Ltd

Spurs Resources

Strategic Oil & Gas Ltd

Sydco Energy Inc

Talos Energy LLC

Tamarack Valley Energy

Teine Energy

TORC Oil & Gas Ltd

Tourmaline Oil

Trilogy Energy

Twin Butte Energy

Vantage Energy

Velvet Energy

Venado

Vermilion Energy

West Valley Energy

Whitecap Resources

P2P

Consol Energy

ENI

Repsol

Shell

Statoil

Total

RFx

eInvoice

RFx

RFx

eInvoice TexLand Petroleum LP

Operator

LogisticsHusky Energy

BP

Nexen

Operator

Operators

Network

Direct Integration

Operator

Operator

Simplifying Connectivity for all Suppliers

© 2019

Simplifying Connectivity for all Suppliers

© 2019

Supplier Access Point Operators Supplier

Buyer Access Points

eDelivery Network

Locator Service

Capabilities Service

Key Services for Suppliers © 2019

OIL & GAS BEST IN CLASS eCOMMERCE

Legal

Framework for

Data Security

& Transaction

Standards

Catalog

Management

& Syndication

Supplier

Connect

Integration

Service

Why OFS Portal?

© 2019

We are an advocacy group funded by diverse oil & gas suppliers

promoting best practices for eCommerce based on core principles:

Data Protection, Ownership & Security of Electronic Commerce

Use of Royalty Free Open Industry Standards

Reducing the Cost of Trading for all Parties

Value to the Supplier

“An OFS Portal membership enables us access to an already

established large legal framework of agreements with our

customers and their networks which means we don’t have to do it

one at a time. Through their agreements we will immediately be

able to use the PIDX standard as protocol for all of our customers,

making customer onboarding easier and faster.”

Chris Beard, VP of Technology, Wellbore Integrity Solutions

© 2019

Chris Welsh - CEO

[email protected]

+1 832 681 7318

www.ofs-portal.com

Contact Us.. Interested in learning more?

Please contact us today.

digitalization of the supply chain in oil &...

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