New White Paper: Speeding up Daily Forward Curve Management


When we launched the Drillinginfo Curves-as-a-Service (CaaS) fully managed forward curve building solution earlier this year, we issued a press release that provided a breakdown of its features. A press release doesn’t tell the human side of the story of why we created CaaS — to relieve the immense pressure on risk analysts that are responsible for calculating and submitting forward curves every single night. That’s why we have published a new white paper, “Speed Up Daily Forward Curve Management with Drillinginfo Commodity Data Solutions.”

Day After Day…

We place you in the shoes of a risk analyst working at an integrated global oil company to give you a sense of how tedious and stressful such an important job has become. Every day she monitors an Excel spreadsheet comprised of 5,000+ lines of VBA to ensure there aren’t any data errors that cause the company to miss the day’s risk run.

She sits at her desk until 7 p.m. or 8 p.m., and finds herself constantly checking her desktop remotely until she goes to bed. At least once a month she will stay at the office until 11:00 p.m. working with her team members in Singapore to resolve any data issues.

Drillinginfo CaaS automates those manual processes enabling her to make it home in time for dinner.

How Did We Get Here?

Receiving accurate forward curves in a timely manner enables companies and traders to deal with the lack of repressive curves traded on exchanges. “Accurate” and “timely” are the key words here, and achieving both can be difficult.

Many companies’ forward curve management strategies were built around internal custom processes in Excel, and initially, the calculations were very simple. But over time, the complexity, cost and time required to run the curves grew, and so too did the likelihood of a simple mistake (e.g., forgetting about a holiday or a computer restart) causing costly errors and lost opportunities.

Drillinginfo CaaS eliminates those errors and delays, and provides real-time calculation of curves.

The Solution: Drillinginfo CaaS

Consider this common CaaS workflow the white paper presents — creating a Fuel Oil 1% USAC (U.S. Atlantic Coast) crack forward curve. A “crack” is a product differential between a product (Fuel Oil 1% USAC) and the underlying crude (WTI in this example). The end result is the curve output of MarketView® Desktop™:

New White Paper: Speeding up Daily Forward Curve Management

Curve output shown on MarketView® Desktop™

Front-office users can see all the curves that were created and it presents a single source of truth to front, middle, and back-office personnel.

To learn more, click here to download the white paper.

CaaS is part of Drillinginfo’s powerful Commodity Data Solutions suite and is now available to current and new MarketView customers. To learn more, visit the Commodity Data Solutions section of the Drillinginfo website.