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INTRODUCING
PIPELINE ANALYTICS
Capabilities to Improve Operating
Performance of Oil & Gas Pipeline
Companies
Opportunities for Pipeline Analytics

REGULATORY COMPLIANCE
Regulatory Compliance Management

How do we find
the weak links in our
compliance process?
Our audit performance
is not acceptable!

What am I
missing?
Is there some sort
of a pattern?

VP Operations
Regional Field Manager
Opportunities for Pipeline Analytics

SAFETY MANAGEMENT
Monitoring Field Safety Performance
We have lots of data from
our incident reports.
But, how we can connect the dots
to see changing
conditions so we can
prevent future incidents?

With all this data
available….
How can I find the
factors that lead to
safety incidents?

Director of Process Safety
Division Superintendent
Opportunities for Pipeline Analytics

PIPELINE INTEGRITY MANAGEMENT
Pipeline Integrity Management
How much confidence
do we have
with the latest pigging results?
Are we able to see any patterns linking
defects to some sort of root cause?

We have all this
pigging and
maintenance data…
How can I find
something useful?

Director Asset Integrity
Integrity Engineer
Opportunities for Pipeline Analytics

PLANT RELIABILITY MANAGEMENT
Plant Reliability Management
Haven’t we seen this
pattern of compressor
shutdowns before?
Why can’t we seem to learn
from our own experience?

Out maintenance
systems collect all
this data …
It is tough to find any
patterns.

Plant Reliability Manager
Plant Maintenance Engineer
Introducing Pipeline Analytics

REQUIRED BUSINESS CAPABILITIES
Business Capabilities

In everything we do, learning and experience
raises our capability to …
• Anticipate future conditions
• Identify unusual situations
• Drive improved results

So What?
Business Capabilities
Pipeline companies can learn from their operating
experience….
• Connect the dots in your business and operations
• Learn the combination of conditions that change your risk profile
• Identify emerging conditions where proactive management is appropriate
• Learn what levers to pull to mitigate risks

• Understand what factors are driving your results
• Improve budgeting processes
• Change how you allocate resources

• Turn historical data into leading indicators of operations
• Become proactive
• Anticipate the future with more confidence

That’s So What!
Business Capabilities
Example Opportunities for Pipeline Companies
•

Predict future conditions, risks or events
•
•
•

•

Classify current operating conditions and events
•
•
•

•

Compliance Performance
Safety Incidents
Integrity Risks
Normal vs abnormal
Proactively reduce or eliminate negative impacts
Leading indicators of future incidents or changing risks

Optimize resource allocation
•
•
•

Pipe replacement spending
Maintenance plans
Staff development
Introducing Pipeline Analytics

REQUIRED ANALYTICAL
CAPABILITIES
Analytical Capabilities
Combine Data with Math Models and a Business Domain
Analytical Capabilities

Drive

Enable

Impact
Results
Value

Analytical
Capabilities

Business
Capabilities

Business
Outcomes
Analytical Capabilities
Pipeline Analytics provides the Capability to...
• Predict
• Classify
• Optimize

In areas relevant to your pipeline operations
Savvy operators can leverage this Capability to
proactively improve process performance in areas such as …
•
•
•
•

Compliance
Integrity
Safety
Capital Control
Example of Pipeline Analytics

PREDICTIVE COMPLIANCE EXAMPLE
Predictive Compliance
Demonstrate and Predict Compliance Performance
Functional
Managers

How are we doing?
How can we improve?
Why are we getting these results?
What is likely to be our future results?
Predictive Compliance
Demonstrate and Predict Compliance Performance
Compliance
Data

Integrated Data

Analytic Techniques

Monitoring and
Learning

Logistic
Regression
Classification

Standard Data
Format

Principal
Components
Analysis
Control Charts

Assume an Indicator has been designed to measure Compliance Performance
Values less than 90 are out of range based on Strategic Objectives
Example of Pipeline Analytics

PREDICTIVE CAPITAL
MANAGEMENT
Predictive Capital Management
Increase Project Control Levels
Predictive Capital Management
Increase Project Control Levels
Project Performance
Data

Integrated Data

Analytic Models

Monitoring and
Learning

Logistic
Regression
Classification

Standard Data
Format

Principal
Components
Analysis
Control Charts

Assume an Indicator has been designed to measure Project Performance
Values less than 80 are out of range based on Strategic Objectives
Example of Pipeline Analytics

PREDICTIVE PLANT MONITORING
Predictive Plant Monitoring
Predict Plant or Equipment Failures
Predictive Plant Monitoring
Predict Plant or Equipment Failures
Plant Performance
Data

Integrated Data

Analytic Models

Monitoring and
Learning

Logistic
Regression
Classification

Standard Data
Format

Principal
Components
Analysis
Control Charts

Assume an Indicator has been designed to measure Plant Performance
Values less than 80 are out of range for Reliability & Availability and above 60 for Failure Probability based on Strategic Objectives
Introducing Pipeline Analytics

GETTING STARTED
I am seeking feedback from Pipeline Professionals in
general, about the need and opportunities for “Pipeline
Analytics” to help companies improve their performance
and address some of their many challenges.
I would enjoy engaging in discussions with you to refine
these ideas and to make a useful contribution to the
pipeline sector.
Please Provide Comments and Feedback to:
Mark Peco
mark.peco@gmail.com

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Pipeline analytics concept for posting on linked in

  • 1. INTRODUCING PIPELINE ANALYTICS Capabilities to Improve Operating Performance of Oil & Gas Pipeline Companies
  • 2. Opportunities for Pipeline Analytics REGULATORY COMPLIANCE
  • 3. Regulatory Compliance Management How do we find the weak links in our compliance process? Our audit performance is not acceptable! What am I missing? Is there some sort of a pattern? VP Operations Regional Field Manager
  • 4. Opportunities for Pipeline Analytics SAFETY MANAGEMENT
  • 5. Monitoring Field Safety Performance We have lots of data from our incident reports. But, how we can connect the dots to see changing conditions so we can prevent future incidents? With all this data available…. How can I find the factors that lead to safety incidents? Director of Process Safety Division Superintendent
  • 6. Opportunities for Pipeline Analytics PIPELINE INTEGRITY MANAGEMENT
  • 7. Pipeline Integrity Management How much confidence do we have with the latest pigging results? Are we able to see any patterns linking defects to some sort of root cause? We have all this pigging and maintenance data… How can I find something useful? Director Asset Integrity Integrity Engineer
  • 8. Opportunities for Pipeline Analytics PLANT RELIABILITY MANAGEMENT
  • 9. Plant Reliability Management Haven’t we seen this pattern of compressor shutdowns before? Why can’t we seem to learn from our own experience? Out maintenance systems collect all this data … It is tough to find any patterns. Plant Reliability Manager Plant Maintenance Engineer
  • 11. Business Capabilities In everything we do, learning and experience raises our capability to … • Anticipate future conditions • Identify unusual situations • Drive improved results So What?
  • 12. Business Capabilities Pipeline companies can learn from their operating experience…. • Connect the dots in your business and operations • Learn the combination of conditions that change your risk profile • Identify emerging conditions where proactive management is appropriate • Learn what levers to pull to mitigate risks • Understand what factors are driving your results • Improve budgeting processes • Change how you allocate resources • Turn historical data into leading indicators of operations • Become proactive • Anticipate the future with more confidence That’s So What!
  • 13. Business Capabilities Example Opportunities for Pipeline Companies • Predict future conditions, risks or events • • • • Classify current operating conditions and events • • • • Compliance Performance Safety Incidents Integrity Risks Normal vs abnormal Proactively reduce or eliminate negative impacts Leading indicators of future incidents or changing risks Optimize resource allocation • • • Pipe replacement spending Maintenance plans Staff development
  • 14. Introducing Pipeline Analytics REQUIRED ANALYTICAL CAPABILITIES
  • 15. Analytical Capabilities Combine Data with Math Models and a Business Domain
  • 17. Analytical Capabilities Pipeline Analytics provides the Capability to... • Predict • Classify • Optimize In areas relevant to your pipeline operations Savvy operators can leverage this Capability to proactively improve process performance in areas such as … • • • • Compliance Integrity Safety Capital Control
  • 18. Example of Pipeline Analytics PREDICTIVE COMPLIANCE EXAMPLE
  • 19. Predictive Compliance Demonstrate and Predict Compliance Performance Functional Managers How are we doing? How can we improve? Why are we getting these results? What is likely to be our future results?
  • 20. Predictive Compliance Demonstrate and Predict Compliance Performance Compliance Data Integrated Data Analytic Techniques Monitoring and Learning Logistic Regression Classification Standard Data Format Principal Components Analysis Control Charts Assume an Indicator has been designed to measure Compliance Performance Values less than 90 are out of range based on Strategic Objectives
  • 21. Example of Pipeline Analytics PREDICTIVE CAPITAL MANAGEMENT
  • 22. Predictive Capital Management Increase Project Control Levels
  • 23. Predictive Capital Management Increase Project Control Levels Project Performance Data Integrated Data Analytic Models Monitoring and Learning Logistic Regression Classification Standard Data Format Principal Components Analysis Control Charts Assume an Indicator has been designed to measure Project Performance Values less than 80 are out of range based on Strategic Objectives
  • 24. Example of Pipeline Analytics PREDICTIVE PLANT MONITORING
  • 25. Predictive Plant Monitoring Predict Plant or Equipment Failures
  • 26. Predictive Plant Monitoring Predict Plant or Equipment Failures Plant Performance Data Integrated Data Analytic Models Monitoring and Learning Logistic Regression Classification Standard Data Format Principal Components Analysis Control Charts Assume an Indicator has been designed to measure Plant Performance Values less than 80 are out of range for Reliability & Availability and above 60 for Failure Probability based on Strategic Objectives
  • 28. I am seeking feedback from Pipeline Professionals in general, about the need and opportunities for “Pipeline Analytics” to help companies improve their performance and address some of their many challenges. I would enjoy engaging in discussions with you to refine these ideas and to make a useful contribution to the pipeline sector. Please Provide Comments and Feedback to: Mark Peco mark.peco@gmail.com