Oil and Gas Industry – Demand Forecasting
Industry:
Oil and Gas
Region:
USA
Technology:
Machine Learning
About the Client
A major natural gas transportation and storage provider implemented advanced forecasting to optimize their operations. The client’s extensive pipeline network spans nearly 14,000 miles, transporting approximately 3.4 Tcf of natural gas annually. Their operations directly serve both end-use markets and industrial customers, making accurate demand forecasting critical to their business success.
Challenges
- Balancing storage levels to avoid shortages that impact customer service
- Excess inventory that increases maintenance costs
- Emergency purchases in order to meet demands
Solutions
- Data sourcing and forecasting
- Feature engineering approach
- AWS based solution architecture
- Technical implementation details
- Forecast methodology
Results
- Improved Customer Service: Ensuring the right amount of gas is always available to meet customer needs, enhancing reliability and satisfaction
- Balanced Inventory Management: Avoiding under/over stocking, reducing inventory holding costs, and eliminating emergency purchases
- Enhanced Risk Management: Multiple forecast scenarios (P10, P50, P90) enable better planning and risk mitigation strategies The implementation of this forecasting solution has transformed the client’s storage operations, delivering tangible business benefits. By optimizing inventory levels, the company has achieved significant cost savings while simultaneously improving their ability to meet customer demand consistently.
