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Encino Energy taps the awesome power of modern analytics

Insights-driven, technology-fueled data and analytics drives success after explosive growth

Client

Encino Energy

Industry

Oil and gas

Primary goal

Build a modern data and analytics function at speed

Technology

Microsoft Azure | Informatica | Snowflake

When Encino Energy had 30 employees and 185 legacy wells, its data and analytics requirements could be met via spreadsheets, a niche application, and email. But when the company acquired 900 wells from Chesapeake Energy, there was a sudden and urgent call for a modernized data and analytics function. Encino would need a powerful new platform informed as much by business insights as by technological function. It would also require a vision capable of inspiring hundreds of new employees to surrender their SQL code, ad hoc processes, and customized reports, becoming active stewards of new architecture, new governance, and a new master data management program. KPMG was there every step of the way.

KEY OUTCOMES

Making a measurable difference

  • A scalable, cloud-based architecture now fuels a data-driven organization
  • Robust data governance supports accountability and accuracy
  • Master data sets now enable enhanced insights across disparate systems
  • Financial, operational, and acquisition risks have been mitigated
  • Reporting cycle times have been reduced from months to weeks

Client transformation journey

Click on each part of the journey to learn more about our client’s transformation.

If you focus on technology first and strategy second, you’re setting yourself up for problems down the road… KPMG leveraged its data and analytics strategy, deep business and industry experience, and technology alliances to build the modern data and analytics function we needed at speed.

Baron Unbehagen

CIO, Encino Energy

KPMG fields a multifaceted team to crystallize Encino Energy’s data and analytics solutions

The oil and gas industry faces especially complex data and analytics challenges marked by the sheer volume and varieties of data; integration from disparate systems, locations, and stakeholders; and the demands around real-time monitoring. On top of those complexities, Encino Energy had to build a new data and analytics capability in response to explosive growth.

To meet our client’s needs, KPMG assembled a team of specialists with deep knowledge and experience in areas including the oil and gas industry; leading business practices; Microsoft Azure; data integration; master data management; data governance; and Informatica, data engineers, data modelers, and Snowflake. We knew it would take all these capabilities combined with advanced technologies to unearth insights, use them to inform the design and creation of a new architecture, and plan and execute a master data management program tailored to Encino Energy.

Assess: Starting with a thorough assessment and building early stakeholder engagement

In order to align to our client’s business, data, and technology needs, we committed to a rapid, robust assessment. We worked closely with key stakeholders to understand their business and reporting needs and to engage them in the process from the start. Examining data sources, processes, and tools helped create a clear picture of the current state and informed the future vision.

Design and build: Creating a modern data services architecture

KPMG designed a cloud-based, multilayer architecture, with each layer serving a specific function such as data integration, standardization, and cleansing.

Key activities included the following:

  • Developed future-state recommendations centered on Microsoft Azure architecture to optimize scalability, resilience, and accessibility
  • Documented the architecture blueprint detailing cloud architectural patterns, integration requirements, controls, and a phased deployment plan
  • Identified needed data sources, including well header, land, account, facility, and regulatory data
  • Built a cloud platform on Azure comprising Snowflake data cloud platform for storage, Informatica for data management, Spotfire for visualization, and other leading technologies
  • Designed and connected automated data pipelines
  • Configured and integrated data from more than 10 disparate legacy sources
  • Standardized data leveraging governance policies, accuracy and lineage controls, and role-based security models.

To ensure that Encino Energy would be ready to run with its new data services architecture, KPMG proposed two implementation phases. In phase one, KPMG developed requirements and led the design, build, and test initiatives for two data domains. In phase two, KPMG handed the reins to Encino Energy IT, lending support as the internal team executed implementation activities for four additional data domains.

Master MDM: Developing a master data management program

Encino Energy recognized that providing valuable, trustworthy data to downstream consumers would require an effective master data management program up front. 

KPMG helped to design, implement, and operationalize an MDM program that brings large volumes of data from multiple, disparate legacy sources into an Encino data hub powered by Informatica, Snowflake, and Microsoft Azure. This modernized platform allows Encino to institutionalize and efficiently apply data management and data governance standards, tools, and processes. The platform leverages automation to improve efficiency, increase accuracy, and ultimately build trust. 

KPMG worked alongside Encino Energy stakeholders to complete key activities, including the following:

  • Defined business requirements for master data and prioritized implementation order
  • Defined master entities by applications, primary and secondary SORs, precedence conditions, key master data elements, and business rules
  • Helped achieve consensus on critical governing definitions, including well header attributes, levels in well hierarchy, Encino well lifecycle, unique well identifiers, and trusted sources for well data
  • Created processes for defining quality, developing rules, managing scorecards, and cleansing data
  • Defined data mastering rules across the well and land domains in terms of standardization, normalization, cleansing, and enrichment logic 
  • Defined data mapping, including SOR table/data element to master data element maps; rules for matching merging, linking, deduplication, and transformation; and scoring logic 
  • Established a data governance vision and mobilized a governance working group
  • Developed a target operating model to formalize roles and responsibilities as well as define processes for managing and measuring data mastering, including at well header, well bore, and well completion levels
  • Established a central repository, leveraging Snowflake, and implemented Informatica Enterprise Data Catalog to manage the business data glossary, facilitate business object searches, and capture meta data
  • Provided end-user socialization, training, and feedback mechanisms.

Deliver downstream: Enabling downstream consumption

To serve the needs of downstream consumers, KPMG helped establish the Snowflake data cloud platform. We engineered ETL pipelines and established load patterns, integrity checks, and DevOps processes to automate, integrate, curate, and deliver complete, accurate data. 

Users can access data via a wealth of dashboards, scorecards, and performance metrics. The platform is the primary source for business intelligence including LOS, gross production, and EOS ARIES on-demand reporting.

Throughout the design and implementation of the Encino Energy data service solution, KPMG combined deep industry experience with leading-edge technical capabilities to deliver tailored, pragmatic solutions focused on Encino's objectives.

Microsoft and Microsoft Azure are trademarks of the Microsoft group of companies.

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