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Oil and Gas

Business Process Standards for the Oil and Gas Industry

Like other industries, standards are important to the smooth operation and interchange of information in oil and gas. They cover standards managing and operating upstream (exploration, development and production of crude petroleum), as well as downstream (refining, downstream marketing and retail), and business standards used to help manage oil and gas companies in their day-to-day operations.

API – American Petroleum Institute 
The American Petroleum Institute represents all aspects of America’s oil and natural gas industry with over 400 corporate members, from the largest major oil company to the smallest of independents. They come from all segments of the industry including producers, refiners, suppliers, pipeline operators and marine transporters, as well as service and supply companies that support all segments of the industry. The American Petroleum Institute produces standards, recommended practices, specifications, codes and technical publications, reports and studies that cover each segment of the industry. The API standards program has also “gone global” through collaboration with ISO. SAP’s Oil and Gas solution incorporates many API standards into its solutions, for example for inventory management.

PIDX – Petroleum Industry Data Exchange 
The Petroleum Industry Data Exchange (PIDX) standard is developed by the American Petroleum Institute’s committee on Electronic Business Standards and Processes. PIDX have developed a set of XML Schemas, originally based on the CIDX standard from the Chemical Industry, which enable automation of various aspects of the oil and gas supply chain. They include standards for: Bill of Lading, Order Management, and Invoice Management. They also include standards for oil and gas specific processes, such as: Field Tickets, Pipeline Nomination and Pipeline Scheduling. PIDX uses the RosettaNet Implementation Framework (RNIF) and AS/2 standards for exchanging messages. SAP’s Oil and Gas solution uses the PIDX standards to provide support for services procurement.

Energistics (formerly) POSC – Petrotechnical Open Standards Consortium
In November 2006, the Petrotechnical Open Standards Consortium (POSC) was re-branded as Energistics. Energistics publishes the Well Information Transfer Standard xML (WITSML) for communicating well data such as wellbore, drilling trajectory, etc. Energistics has also taken responsibility for the Production Markup Language (PRODML) standard that supports data exchange between applications and data stores in the office domain (typically data historian and technical analysis applications). The emphasis is on near-real time optimization (i.e. optimization that can be achieved by making changes in the existing production configuration that can be effected within one day). SAP’s oil and gas solutions use both WITSML and PRODML in Upstream (E&P) Production Revenue Accounting (PRA).

FERC – Federal Energy Regulatory Commission 
The Federal Energy Regulatory Commission (FERC) oversees energy industries in the economic, environmental, and safety interests of the American public and regulates the interstate transmission of natural gas, oil, and electricity as well as natural gas and hydropower projects. They play a key regulatory role in the USA.

NAESB – North American Energy Standards Board 
The North American Energy Standards Board (NAESB) is a non-profit, industry-driven organization established in January 2002 to develop standards and business practices designed to promote more competitive and efficient natural gas and electric service. Their goal is to develop a seamless marketplace in four “quadrants”: Wholesale Electricity, Retail Electricity, Wholesale Gas and Retail Gas. NAESB is the successor to the Gas Industry Standards Board (GISB). SAP uses NAESB standards for the nominations process in the transmission of natural gas.

The mission of PetroXML is to provide a starting point for xml-based standards for documents commonly used in Petroleum Industry joint venture activities. Currently PetroXML provides documents to support business processes for Revenue Check and Joint Interest Bill. Revenue Check is used by joint venture partners during the production revenue accounting process to allocate revenue according to their shares.. The Joint Interest Bill is used by one party in a joint venture to bill another party in the venture for monies that are due. PetroXML is an essential component of SAP’s Oil and Gas solutions for the Production Revenue Accounting process in North America.

PMML – Predictive Modeling Markup Language 
The Predictive Modeling Markup Language (PMML) is developed by the volunteer based Data Mining Group (DMG). PMML is an XML-based language which provides a way for applications to define statistical and data mining models and that can be shared between PMML compliant applications. PMML is important for the provision of real-time analytics based on data mining models.

PPDM – Public Petroleum Data Model 
The long term vision of the Public Petroleum Data Model (PPDM) is to develop a relational data model that embraces the major upstream E&P business subjects; encompassing exploration, development, production, gathering and marketing, plus related management and administration functions. Version 3.7.1 provides definitions of over 30 different entities. The PPDM model is designed to be used for the database structure behind oil and gas software applications.

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