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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Members
© 2019
F
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Digital Integration Between Operator’s P2P & Supplier’s O2C
FULFILLMENT ORDERING SOURCING PAYMENT
DATA PROTECTION & OWNERSHIP
© 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
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
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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m
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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
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a
l
P
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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
Bonanza Creek Energy
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
Supplier Managed Catalogs © 2019
Supplier Managed Catalogs © 2019
COMPLEXITY INCREASING IN THE DIGITAL WORLD
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
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
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
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
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
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
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
SA Supplier Agreement EDA Electronic Data Agreement IOA Inter-Operability Agreement
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
eCommerce Adoption Future
© 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
Bonanza Creek Energy
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
+1 832 681 7318
www.ofs-portal.com
Contact Us.. Interested in learning more?
Please contact us today.