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Data Mining:Unlocking the Intelligence in Your Data

[PRESENTATION EXAMPLE]

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Today’s Agenda

Big Data – What is it?

Data Mining at a Glance

The Importance of Data Mining

Know Your Tools

Next Steps & Final Thought

Questions & Answers

BIG DATAWhat is it?

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What is Big Data

Wikipedia says:

“A collection of

data sets so large

that it becomes

difficult to process

using traditional

data processing

applications.”

We say:

“So much data

that it freezes

Microsoft Excel.”

Data is

produced

from all parts

of a

company

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What is Big Data

A company

generates

multiple sources

of data

It’s not

uncommon for

each data

source to have

50,000+ lines

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What is Big Data

• Having large amounts

of raw data does not

necessarily translate to

effective decision-

making

• Interpretation is key,

and this is where data

mining shines

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Data Mining at a Glance

Output is usable data:Reveals correlations and patterns

to support decision making

Process and

interpret the

data using:

• Software – ACL

• Scripts and

formulas

• Industry

statistics

• Artificial

intelligence

• Database

management

• Accounting

knowledge

Other

Reports

Vendor Data

LOS Reports

Start with large amounts of disparate, raw data from different sources

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Data Mining at a Glance

Manual Sampling – See only part of the picture

• Eyeball large reports

• Make decision based on

small parts of the data

• Constrained by time

Automated – See the full picture

• Leverage all of the data

• Combine data from all parts

of the company

• Better data in less time

• Analytics that are customized to your processes

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Oil & Gas Industry Example:

The Importance of Data Mining

• 8-9% average profit margins

• High risks per project

• Geographically dispersed operations

• Multiple service providers and

subcontractors

• Joint interest billings

• An abundance of disparate data:

– AFE

– Cost by well

– Production by well

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• Are you getting paid in a

timely manner?

• Are you billing completely

and accurately—to contract

terms and capturing all

services?

• Are you overpaying your

employees and contractors?

• Do you know who your most

profitable customers are?

• Are you leveraging

production statistics to

produce most efficiently?

• Are you being charged

correctly by your vendors?

• Are you paying invoices

twice?

• What about fraud? Would

you know if kickbacks were

happening?

Supplier SideProduction Side

Oil & Gas Industry Example:

The Importance of Data Mining

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JIB Reporting:

Sample Cost Questions

• Well Costs– Do costs to production vary

from expectations?

• Vendor Costs– Do vendors charge for the

same price for similar services?

– Have new vendors been properly vetted?

– Production trend analysis by various drivers: cost to barrel, MCF by well, region, location, project, etc.

– Looking at trends within production against geologists’ reports; pinpoint non-productive elements

Oil & Gas Industry Example:

The Importance of Data Mining

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Next Steps

• Know your data

– If you don’t know your data, you

will not develop a successful

program

• Key points to consider in

designing a successful program:

– Develop a plan

– Identify the risks

– Determine your stakeholders

– Determine the tool and who will implement the tool

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Final thought:

Mining your company’s data can

unlock key information

to reduce risks and

improve your bottom line