January 13, 2023

Fragmented Datasets Could Cost You Big 💰

You might be operating with an incomplete picture.

The Big Picture: Oil and gas operators are making ESG decisions from fragmented data in disparate locations within the organization. Much of this data is trapped in silos - managed by different teams - without a centralized source of truth from which it can be verified, interrogated, and analyzed. Working with emissions data in the “silos” (e.g., D&C, Production, Environmental, Finance) hinders decision making, creates inconsistencies in data, challenges auditability of performance.

Why it Matters: Inconsistent data could lead to multiple (possibly incorrect) answers to the same question from multiple sources. This leads to errors and very real consequences:

  • Overestimating: Net zero energy companies are purchasing carbon offsets that range in cost from $10 - $30 / metric ton. Even over-reporting emissions by 1% by using decades old factors can cost a company hundreds of thousands of dollars per year.
  • Underestimating: The environmental regulator in the UK fined 33 companies more than £27 million for under reporting GHG emissions.

Go Deeper: Does the following scenario sound familiar? You promise yourself that this is the year you will put more rigor and control around emissions data collection and analysis. However, an end of month ad-hoc data request hits your desk. So, you start pulling data together “just this one last time,” and it looks something like this:

You need data from operations, but “operations” isn’t just one group. You’re gathering data from:

  • Continuous Operations
  • Event / Unplanned Operations
  • Maintenance Activities

You also need data from Production Accounting, Finance and the D&C contractors.

And now, Environmental and Engineering are involved because you must run a few process simulations on tanks.

Somehow, you’ve aggregated the data, which ranges from paper to email to Excel. Now, you have all these different pieces of data with some overlap / gaps, and you’re trying to reconcile it all - while also doing your day job.

Zooming In: You’re looking at a site that has to buy gas and then allocate it to different pieces of equipment:

  • You have highly calibrated meters on site to track fuel purchase for combustion operations
  • However, you also have less calibrated meters on each piece of equipment to monitor engine operations
  • Putting these two seemingly similar data sources together gives you an uneven calibration of equipment, creating a time-consuming and un-auditable process

The Solution: Take a Financial Performance & Analysis (FP&A) approach to measuring, reconciling and verifying your carbon data, with auditable and transparent controls. Iconic Air acts as a System of Intelligence for all your carbon data, creating a apples-to-apples view into your operations. This way, when you get requests for that last minute report needed by the end of the week, the answers are only a few clicks away.

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