Oil & Gas Expertise
PowerAdvocate has deep industry expertise across the entire Oil & Gas vertical, with E&P, midstream and downstream clients. We leverage our O&G-specific database in delivering immediate operational improvements and savings. Clients leverage our robust software suite coupled with skilled industry experts to benchmark operations, improve estimation efforts, incorporate market data, streamline sourcing, and better manage the supplier base. In an environment of increasing shareholder pressure, PowerAdvocate has the means to add meaningful value.
PowerAdvocate has the resources to support both asset owners and Supply Chain/Procurement. E&P companies are universally looking to improve operational performance – safely drilling wells faster and at lower costs – leveraging institutional know-how while also taking advantage of increasing amounts of operational data.
PowerAdvocate provides the insights needed to make better decisions:
- We can help asset owners negotiate with OFS partners
- We can help Supply Chain introduce and implement category management
- We can provide the accuracy and granularity to identify cost savings opportunities
- We can introduce unit of measure details to allow for enhanced benchmarking
- We deliver an exceptional ROI
Delivered 10% in Cost Savings on $500M of Category Spend
Transitioning to a centralized supply chain organization, a Canadian Oil Sands Company struggled to implement category management. Previously, the supply chain had no visibility into their enterprise-wide spend data and needed to form effective strategies to operate as a top tier organization.
PowerAdvocate worked with our Customer analyzing historical spend across several business units. The analysis identified strategic categories representing well over $1B in spend to leverage opportunities. PowerAdvocate applied industry best practices across contracting strategies and business models to reduce risk and implemented KPIs and supplier scorecards to improve quality of service. Our analysis also infused internal practices with supply market information and benchmarks on critical costs to identify cost savings and mitigate future risk.
With PowerAdvocate expertise, Customer gained executive approval to execute category strategies identifying 10% in cost savings on $500M in spend.
PowerAdvocate’s decades of work with the nation’s largest regulated pipelines is directly applicable to the midstream market. We understand the importance in improved capital project estimation – the need to learn from past experience and incorporate market data for improved forecasting and negotiations.
Our collection of software modules coupled with on-the-ground experts can introduce the capabilities to dramatically improve companies’ go-to-market efforts.
- We have built unit of measure benchmark databases
- We have industry-specific spend classifications
- We have cleansed billions and billions of midstream-related spend
- We have helped create Supply Chain organizations and ratcheted up capabilities
- We have detailed, customizable cost models for project forecasting
Identified 15% Savings and 50% Schedule Improvement
The midstream company wanted to evaluate its capital project practices to identify potential areas for improvement.
PowerAdvocate interviewed key stakeholders, analyzed over 300 project documents, compared findings with $1.7 trillion energy database, and leveraged custom midstream cost models. The short-cycle effort was completed in five weeks.
PowerAdvocate delivered specific recommendations, comparing the client’s practices with best-in-class industry activities. Suggestions included:
- Expand sourcing management: create supplier KPIs, expand the supplier pool (take advantage of PA’s midstream supplier database)
- Utilize online sourcing tools – faster, more organized, leverage historic bid results
- Build in-depth bid datasheets for more informed decisions
- Construct bid evaluation scorecard
- Develop incentive/penalty/performance-based contracts
In the hyper-competitive downstream market, PowerAdvocate can help improve profitability immediately by reducing operating costs, improving capital project efficiencies and identifying operations and maintenance execution strategies.
PowerAdvocate has expertise in transactional activities, turnaround projects, and helping to manage large EPC contracts. We have helped clients with specific labor comparisons between regions to full-blown operational cost comparisons including all direct and indirect costs.
We help companies reduce expenses regardless of if it is for ongoing traditional operations or as downstream companies expand into new businesses such as midstream, LNG or chemicals.
Identified $10M in Cost Savings Opportunities with Benchmarking Analysis
A Fortune 100 energy company spent $200M annually on general maintenance labor and needed new strategies to standardize and improve their craft labor rates.
The client wanted to understand how 144 Refinery and 21 Pipeline labor rates compared to industry benchmarks and individual markups components.
- Matched MPC labor rate classifications to general industry classifications
- Aggregated and normalized benchmarks from PowerAdvocate’s proprietary database
- Analyzed how the client’s Refinery and Pipeline labor rates compared to industry benchmarks using over 6,000 data points
- Created custom Cost Intelligence models that analyzed how labor rates have changed over time and how they are forecasted to change in the future
With the help of PowerAdvocate, the client successfully assessed 165 craft labor categories.
The client was also able to identify $10M in cost savings opportunities on Refinery and Pipeline labor rates across various locations, contractors and crafts.
PowerAdvocate empowers energy supply chain decision makers with the latest supply market intelligence to deliver significant savings and mitigate risk.
When weighing your options on which capital investments will provide the greatest return, market data is critical to making the most informed decision. PowerAdvocate has the leading energy supply market FactBase, seasoned experts and technology to put the latest market information at your fingertips. Our industry intelligence spans across all facets of the energy spectrum from exploration & production to gathering & processing, and even pipelines. Our customers represent some of the top North American energy companies, providing us unique insight into real-time market conditions.
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