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Corvelle Drives Concepts to Completion

Corvelle Drives Concepts to Completion. Monitor Compliance Risks Through Data Analytics. IIA Calgary Luncheon 15 September 2010. Yogi Schulz Biography. Partner of Corvelle Consulting Information technology related management consulting Microsoft Canada columnist & CBC Radio host

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Corvelle Drives Concepts to Completion

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  1. Corvelle Drives Concepts to Completion

  2. Monitor Compliance Risks Through Data Analytics IIA Calgary Luncheon 15 September 2010

  3. Yogi SchulzBiography • Partner of Corvelle Consulting • Information technology related management consulting • Microsoft Canada columnist & CBC Radio host • PPDM Association board member • Industry presenter: • Project World - 4 years • CIPS Informatics - 7 years • PMI - Information Systems SIG - 2 years • Convergence - 4 years • PPDM Association - several years

  4. PresentationOutline • Business Context • Data Analytics System • Development description • Benefits • Conclusions • Recommendations • Discussion

  5. Business Context • Regulator publishes requirements • Oil & gas industry expected to comply • Some requirements relate tomeasurement and reporting

  6. Business Problem • Current situation: • Challenge maintaining compliance audit coverage • Suspicion of poor compliance • Goals to: • raise level of assurance over state of compliance • raise level of compliance • Approach: • Apply CSOX audit concepts to compliance audit • Improve monitoring through data analytics

  7. Oil & Gas IndustryHigh-Level Data Flow FieldProductionOperations FinancialAccounting FieldDataCapture Alberta’soil & gasregulator RevenueAccounting ProductionAccounting AlbertaEnergy PetroleumRegistryAlberta

  8. Compliance AuditPhilosophy “Trust, but verify” - Ronald Reagan

  9. Continuous auditing • A method used by auditors to perform audit-related activities on a continuous basis • Changes the audit paradigm from periodic reviews of a sample of transactions to ongoing audit procedures that test 100 % of transactions resulting in timely and comprehensive insights into risk and control issues

  10. Data Analytics SystemOverview InputDatastores Data Extract NoncomplianceIndicators ComplianceAnalytics

  11. Data Analytics SystemData Extract Data Extract Alberta’soil & gasregulator FieldInspectionSystem ExtractA - n

  12. Data Analytics SystemData Analytics Extract A ComplianceAnalytics NoncomplianceIndicators Extract B ComplianceAnalytics

  13. Data AnalyticsExamples • High metering difference • Production rate trending up • Puzzling trends in gas flare, fuel, vent, meter difference • Gas production greater than oil production for an oil well • High or low fuel consumption

  14. Data Analytics SystemReporting Noncompliance Indicators OperatorReports Reports ProductionAudit TeamReports

  15. Data Analytics SystemArchitecture Master Reports Data Extract ComplianceAnalytics Transform

  16. Data Analytics System Development • Building the system - a part-time effort • ACL dramatically reduces the amount of code • Significant architecture, design and testing effort

  17. Benefits of ACL forData Analytics development • Cost-effective and rapid development • Adaptable to change as source datastores change • Adaptable to change ACL Compliance Analytics Routines • Encapsulates expert understanding of data relationships in complex datastores • Simple validation of candidate compliance assessment indicators

  18. Benefits of ACL forData Analytics system operation • Formal, fully auditable system • Fully automated operation • Scalable solution

  19. Business benefits of this Data Analytics activity • Assurance over the state of compliance • Feedback to oil & gas operators • Improved data quality for all stakeholders • Comprehensive auditing • Greatly increased auditor productivity • Independent of skilled data analysts

  20. Conclusions • Data Analytics addressed our business challenge • ACL enabled development and operation of our Data Analytics System

  21. Recommendations • Investigate opportunities to employ Data Analytics within your organization • Consider ACL as the technology to implement Data Analytics • Consider ACL for batch Data Analytics applications

  22. Next Steps • Identify datastores to examine • Experiment to identify potential data anomalies • Design, build and test a Data Analytics system • Collect dollars revealed

  23. Questions &Discussion Can you help us improve our compliance? Please fill out evaluation form

  24. Monitor Compliance RisksThrough Data Analytics Corvelle Consulting 700, 205 - 5 Ave. S. W. Calgary, Alberta T2P 2V7 Phone: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Yogi Schulz Partner of Corvelle Consulting Information technology related management consulting Microsoft Canada columnist & CBC Radio host Industry presenter PPDM Association board member

  25. Bibliography • Continuous Auditing

  26. Noncompliance Indicator FileRecord Layout • Noncompliance Indicator id • Production Year/Month • Operator BA id • Facility id • Noncompliance supporting data

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