Business Intelligence As A Tool To Maximize Profits In Oil And Gas Company Essay

Objective ( Industry over position, BI sum-up )

I have chosen this subject because the determinations made in oil and gas companies have a immense impact on planetary economic system and overall environment. Requirements of the developed economic system for liquid natural gas and oil – both as fuel and as in natural stuffs for the chemical industry is steadily increasing. Demand lifting has led to crisp addition in the monetary values for oil and for hydrocarbon natural stuffs as a whole, which has caused addition in extraction of these merchandises in all states possessing sedimentations of hydrocarbons. The oil and gas sector became the chief giver of fiscal resources for the province budget of the state. This subject will cover how Business Intelligence ( BI ) tools support direction to consolidate processs and to maximise net incomes, through cutting costs and informations integrating.

BI along with informations warehouses and concern analytics represent that toolkit which allows oil & A ; gas companies to take a upper limit of the information from the available primary informations, to uncover the basic tendencies and to build prediction theoretical accounts, i.e. , eventually, to transform the available company informations into a beginning of extra net income. In add-on to BI, footings like concern public presentation direction ( BPM ) , concern procedure direction ( besides BPM ) , corporate public presentation direction ( CPM ) , and concern activity monitoring ( BAM ) , have besides emerged. All of these are a portion of BI. They are all dependant on BI tools, but it should be noted that BI is non dependent on them.

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In my understanding BI-projects need to be considered non merely as object of decrease of disbursals, but besides as the tool of development which can convey net income to company. Functions of analytics and prediction which are intended for the determination of strategic inquiries, will assist to put precedences during crisis clip, to specify chief causes of disbursals and possible beginnings of growing. Having found out them such company can work over tax write-off of favorable clients and addition of favorableness of concern at the disbursal of attractive force of the new. Merely with the aid of BI it is possible to transport out prediction of state of affairs, puting different conditions and having consequences of prognosiss depending on the set parametric quantities.

The primary application of BI in oil and gas companies is to assist direction consolidate operations and cut costs. The basic ends have been to shorten the clip required to make studies and analyses, better the truth of information and make a individual information depository. The most common application countries for BI have been to supply fiscal studies and analyses, and support concern operations with a particular focal point on ERP. In our yearss the modern big oil and gas companies represent vertically incorporate companies. Vertical integrating describes the ownership or control by a house of different phases of the production procedure, e.g. , crude oil refinement houses having “ downstream ” the terminal storage and retail gasolene distribution installations and “ upstream ” the rough oil field Wellss and transit grapevines. It can be achieved through M & A ; A ( amalgamations and acquisitions ) or investing.

Upstream is a term which describes the geographic expedition and production sectors within the oil and gas industry. Downstream, in the context of the oil and gas industry, applies to the refinement and selling sectors of the industry. Oil and gas merchandises are trade goods and are, hence, competitory based on monetary value. This makes the industry cost-conscious and extremely dependent upon the monetary value of rough oil, the basic concern driver in the industry and the natural stuff for production ( Skriletz, 2002 ).

Purpose of the research

The increased demands to efficiency and quality of recognized determinations at all degrees of operations in oil & A ; gas companies leads to happening of decision-making support techniques. It assumes ownership of the existent cosmopolitan information on a status and inclinations of development of concern by methods and BI means. Thus the volume of the information which is necessary for sing for formation of optimal tenable determinations steadily grows. It leads to a state of affairs when it becomes efficaciously impossible to run the company without usage of modern agencies of information support. Transactional information is good for maintaining path of what is go oning in an organisation, but is non good suited to happening out why things are go oning or foretelling future public presentation. In other words, after old ages of seting potentially valuable fiscal informations into your corporate databases, it is now clip to set the tools in topographic point to acquire the informations out of the same systems and form it in utile ways to back up the decision-making procedure.

The intent of the research is to demo that BI is such a tool which gives the opportunity to the administrations to transform the accrued informations in the information on concern, and so the information into extra beginning of net income. The research inquiry is how the value of BI should be considered in the context of profitable concern action. BI has become an expected concern competence for bettering decision-making effectivity. Leading endeavors are set uping competence in facets of BI such as determination modeling and support so that all workers, directors and executives can take the most effectual action in a given concern state of affairs. Missing worthy BI tools oil companies risks to remain competitory or even to prolong in a concern.

What is more I want to use my research outcomes in KMG, the job is that BI is non so developed in Kazakhstan, so I hope my cognition will be paid to my company as employer and to me as employee.


There is presently adequate media attending concentrating on this topic and about this subject. A bulk of these can be found in IT magazines, newspaper articles and on the cyberspace, but the credibleness of these beginnings is questionable. They can besides be written by people who do n’t cognize a batch about the topic and have formed an sentiment based on minimal information. IT magazines articles are frequently written in a colored manner in footings of being in favor of one seller, such as company propaganda or from the point of position of the author. This information can be deceptive, articles written by Gartner and TDWI analysts have more credibleness and raise of import inquiries and point of views which I believe should be considered in my study. Below is the list of books and resources I am willing to utilize during my research:

The Profit Impact of Business Intelligence ( 2007 ), Williams S. , Williams N.. Morgam Kaufmann Publishers

This book contains plentifulness of mini-cases and utile information for my undertaking.

Business Intelligence, The Savvy Manager ‘s Guide ( 2009 ) , D.Loshin, Morgan Kaufmann Publishers

This book provides a cognition base for the determination shapers to find the value of incorporating BI into the company. In this book I want to look at the modern position of the aggregation and integrating of transactional and mention informations as a valuable resource that can be used for analytical intents.

BI Success Factors: Tools for Aligning your Business in the Global Economy ( 2009 ) , O.Parr Rud, John Wiley & A ; Sons

Fiscal BI: Tendencies, Technology, Software Selection and Implementation ( 2002 ) , Nils Rasmussen, Paul S. Goldy, Per O. Solli, Publisher: John Wiley & A ; Sons ; 1 edition

This book will assist me to reexamine how directors can rapidly and easy analyze the fiscal information in the corporate databases in order to be able to do more intelligent determinations about the hereafter. Consequently it will assist me to analyze the impact of BI fiscal tools.

TDWI Best Practices Reports Series

This series is designed to educate proficient and concern professionals about new BI engineerings, constructs, or attacks that address a important job or issue. Research for the studies is conducted via interviews with industry experts and leading-edge user companies and is supplemented by studies of BI professionals.

Gartner Inc.

Gartner beginning is the most comprehensive aggregation of analysis and advice for the users and sellers of engineering.


In my research I want to follow multi -method, which will incorporate:

Interview: To acquire more practical point of position I am traveling to interview those who work on execution of BI tools and utilize SAP-ERP in gas transit, to be more precise fiscal section in KazMunayGas and KazTransGas. KazMunayGas is the state-owned oil and gas company of Kazakhstan and KazTransGas one of KazMunayGaz subordinates responsible for gas transit.

Trend analysis: Phenomenon that are or have been in the procedure of alteration are examined to place and describe the waies of tendencies and to do readings and prognosiss.

Literature: As I mentioned antecedently

Qualitative informations beginnings ( TDWI and Gartner ) will incorporate different instances in my research. Conducting qualitative research requires an ‘open ‘ attitude in order to understand how others experience their state of affairs. Qualitative research is characterised by the fact that the research worker works on the footing of an unfastened inquiry

Qualitative research represents the general name for a group of fact-finding processs with common features. Besides, qualitative research is empirical in the same sense as other recognized signifiers of scientific enquiry. It relies on observation.

Qualitative research encompasses several signifiers of the probe. They all portion this feature: The informations used do non suit readily to quantification, specification, objectification, or categorization. Because of that, common statistical processs can non be used for informations show or analysis. Typical of such informations might be studies of participant observation or the texts of in-depth and comparatively unstructured interviews.


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