VP Center of Excellence & Business Services, Chevron

Slides:



Advertisements
Similar presentations
MARKETING CHANNELS (Place)
Advertisements

© 2006 FedEx. All rights reserved. FedEx Ship Manager ® at fedex.com Shipping Administration.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Introduction to INTTRA-Act Shipping Instructions Q
Introduction to Web Bill of Lading Q Proprietary and Confidential Copyright © 2005 INTTRA Inc. 2 Agenda Industry Challenges INTTRA Solution Value.
Cost Management ACCOUNTING AND CONTROL
Objectives Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact and.
The 4 T’s of Test Automation:
INTERNAL CONTROLS.
Membership & Roster Maintenance Officers Training Workshop September 2012 Kevin Shanahan 1.
ASYCUDA Overview … a summary of the objectives of ASYCUDA implementation projects and features of the software for the Customs computer system.
_______________________________________________________ Book Industry Communication The UK Industry Returns Initiative Brian Green BISAC SCEDI, 10 March.
June 22, 2005 NAESB Board of Directors Meeting, San Antonio, Texas 1 North American Energy Standards Board Meeting of the Members NAESB Board of Directors.
Leadership for Energy Automated Processing
Prepared by the North American Energy Standards Board 1 North American Energy Standards Board NAESB Overview Presented to: Data Privacy Task Force February.
1 Environmental Assessment of Trade Negotiations Government of Canada Approach WTO Public Forum September 25, 2006.
1 The Metro Ethernet Forum Helping Define the Next Generation of Service and Transport Standards Ron Young Chairman of the Board
Report to the IIJIS Implementation Board October 20, 2004 Dale Good – SEARCH Dave Usery – IJIS Institute.
1 DOE Safety Committee Handbook. 2 Effective Safety Committee! Make it work for you!
Making the System Operational
Audit Evidence Week 11.
Government Services Group Wednesday, 18 September 2013 Purchase Cards Government Services Group Presented by Miro Dabek, Manager Procure to Pay Reform.
1 Administrator Introduction Driver Discount Lodging Program For T-Chek Systems.
Look, no forms! Integrating ESBRs into the IT Enterprise ATCO Seminar - May 10, 2005.
Configuration management
IBM Corporate Environmental Affairs and Product Safety
Vision: A strong and capable civil society, cooperating and responsive to Cambodias development challenges 1.
Copyright 2007 EcoSys Management LLC All Rights Reserved. Confidential and Proprietary Information. 1 Integrating Financial Management with Project Management.
A Roadmap to Successful Implementation Management Plans.
Information Technology Project Management – Third Edition
- 1- Just enough. Just in time. Just for you March 24, 2011 Building a solid foundation: A new approach to ERP acquisition March 24, 2011 Mike Reyna Project.
1 Division of Aging and Adult Services (DAAS) Knowledge Management and Transfer Project 7/30/12.
OptiShip ® Multi-carrier Shipping System. OptiShip ® customers save on average 13.6% of parcel shipping costs… OptiShip ® is a comprehensive system that.
1 The Antecedents of Internal Auditors Adoption of Continuous Auditing Technology: Exploring UTAUT in an Organizational Context Ray Henrickson CAIT, CACISA.
IFX Forum Benefits of Membership August Our Mission The mission of the Interactive Financial eXchange (IFX) Forum is to develop and promote adoption.
Roadmap for Sourcing Decision Review Board (DRB)
How to commence the IT Modernization Process?
Future role of GRI NW Stakeholder Group Meeting The Hague, 7 may 2010 Peter Plug Chairman of GRI NW.
Get Started in e-Business. Aim This presentation is prepared to support and give a general overview of the ‘How to Get Started in e-Business’ Guide and.
Rosemarie Day Deputy Director and Chief Operating Officer Thursday, May 8, 2008 Operations Report Current Priorities and Future Plans.
GE Healthcare UK Performance Solutions
Registry system data exchange General design requirements Pre-sessional Consultations on Registries 19 October 2002 New Delhi, India UNFCCC secretariat.
Instant Business Improvement “Managing Operational Performance”
Chapter 14 Fraud Risk Assessment.
Senior Fiscal Officer Meeting Thursday, November 17, 2011.
Chapter 10 Accounting Information Systems and Internal Controls
The Deriv/SERV Trade Information Warehouse: Benefits and Opportunities 15 th March 2007 Bill Stenning Business Development.
Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight.
1 Introductions  Jeff Bailey PhD, PMP – Practice Manager, CherryRoad –Project lead, Team Georgia Marketplace™ for four years –Responsible for facilitating.
IN THE NEW PARADIGMS OF BUSINESS MANAGEMENT. ENTERPRISE RESOURCE PLANNING What is ERP? Business Challenges Today Why purchase an ERP solution ? Intway.
ADVANCING EFFICIENCYADVANCING COMMERCE eInvoicing European Directive & UK Plans Steve Shirley, Senior Director, Public Sector October 29, 2014.
SWIS Digital Inspections Project (SWIS DIP) Chris Allen, Information Management Branch California Integrated Waste Management Board November 5, 2008 The.
© Grant Thornton | | | | | Guidance on Monitoring Internal Control Systems COSO Monitoring Project Update FEI - CFIT Meeting September 25, 2008.
Operational Excellence and Sustainable Performance Improvement Date: 9 June, 2009.
IT Service Delivery And Support Week Eleven – Auditing Application Control IT Auditing and Cyber Security Spring 2014 Instructor: Liang Yao (MBA MS CIA.
Copyright © 2004 by The Web Services Interoperability Organization (WS-I). All Rights Reserved 1 Interoperability: Ensuring the Success of Web Services.
Market Reform Group Electronic processing The role of standards and how it all fits together Beginners session - 23 rd January 2008 Rob Campbell, MRO.
John T. Vaughan, CEO, MarketDataInsite December 3, 2004 An Objective Look at IT Solutions for Hedge Fund Operations.
Managing Regulatory Changes June 24, Regulatory Change Management Critical Component of successful overall regulatory compliance risk management.
SITPRO Simplifying International Trade SITPRO Gordon Cragge Director - Trade Facilitation & Promotion.
+ OTC Derivative Clearing Summary Making Great Ideas Become Reality”
DEMAND RESPONSE TRANSPORTATION SOFTWARE Improved scheduling processes will generate higher revenue: Schedulers decrease their trip booking times Schedulers.
PCS : PORT COMMUNITY SYSTEM Container Shipping Lines Association
The Implementation of BPR Pertemuan 9 Matakuliah: M0734-Business Process Reenginering Tahun: 2010.
TAXCO BUSINESS SERVICES INC. Division of Des-Dawn Corporation BOOKKEEPING | PAYROLL | TAX FILING | TAX PLANNING | CONSULTING INTRODUCING TAXCO BILL PAY.
Combating Uninsured Driving 2011 Annual Region I Conference.
Microsoft Dynamics GP Paperless Automation David Adams Channels Sales Support Manager The Challenges, Benefits & Value.
BMO’S SUPPORT FOR YOUR ORGANIZATION
Microsoft Dynamics GP Paperless Automation
{Project Name} Organizational Chart, Roles and Responsibilities
Presentation transcript:

VP Center of Excellence & Business Services, Chevron Introduction to LEAP (Leadership for Energy Automated Processing) The Role of Leadership in Driving Automation & Standardization in our industry Gary Spengler VP Center of Excellence & Business Services, Chevron and LEAP Co-Chair Welcome participants. Good afternoon, my name is Gary Spengler. I’m VP for Chevron’s Downstream Center of Excellence and Business Services and Co-Chair for LEAP – Leadership for Energy Automated Processing. Today I plan to give you an overview of what LEAP is about and how business leadership has a key role in driving automation and standardization in our business. NEXT SLIDE November 16, 2011 © LEAP 2011

Leadership Drives Automation LAGGARDS Data integrity and management is critical to our business – within the oil, energy, independent trading and banking industries. We know that there are parts of our industry that are lagging behind. Specifically, we’re talking about the commercial piece across the front, mid and back office. So where do we want to be? Do we want to be leaders using space age technology or laggards using a stone age chisel? How do we get there? There are many industries already paving the leadership path ahead….. NEXT SLIDE Other industries are leading the way – where do we want to be? © LEAP 2011

Leadership Drives Automation (cont) Major IT Milestones in FedEx History 1978: Fred Smith, who founded FedEx in 1971, declares: "The information about a package is as important as the package itself.“ FedEx Ground's hubs sort 3.5 million packages a day without human intervention, helping the courier win market share. 1979: FedEx launches a centralized computer system designed to track packages, routes, weather, vehicles and employees. 1980: Implements a dispatch system that allows customers to electronically request pickups. These supply chain driven companies are leaders in their industry. Many started 1, 2, 3 decades ago. Even the gas industry is way ahead of the game, whereby the industry evolved from 20-year contracts to annual pricing terms, to monthly, then daily and even hourly (electric utilities) They have mastered automation…. Where do we want to be? NEXT SLIDE 1984: Introduces a PC-based shipping system. 1986: Introduces a handheld bar-code scanner. Source: ComputerWorld.com © LEAP 2011

What’s Holding Back Our Industry? 1. Leadership 2. Partnership 3. Focus 4. Commitment Leadership - drives change – FedEx is a perfect example of leadership driving from the top Partnership - we’re all doing this in our own houses. But when we’re working together - for example contract matching – we need to work in partnership. Agreeing on language etc Focus - we need to prioritize (I’ll shortly talk about LEAPs prioritized 6 key initiatives). To make this happen we need Commitment from everyone in our industry LEAP provides the leadership, the forum to work in partnership, and the focus . NEXT SLIDE LEAP is the enabler to do this. © LEAP 2011

LEAP Leadership for Energy Automated Processing LEAP was formed in 2006 with the mission to: Promote efficient and reliable transaction processing within the energy trading industry by means of automation and standardization. Our founders are a group of oil majors, banks and independent traders. Benefits of automation:  Accuracy & Timeliness  Managed Risk  Consistency  Regulatory Credibility  Efficiency For those of you who are not very familiar with LEAP – Leadership for Energy Automated Processing…. Here’s some background: LEAP was formed in 2006 with the mission to: Promote efficient and reliable transaction processing within the energy trading industry by means of automation and standardization. Accuracy & Timeliness – minimize operational incidents Consistency – reduce operational risk Efficiency – scale up the business while containing operating costs Managed Risk – manage counterparty, operational and market risk Regulatory credibility – provide real commitment to industry best practices NEXT SLIDE Better Access to Customers, Capital and Profitability!

The LEAP Board of Directors Co-Chair: Gary Spengler Chevron, US James Murdoch Shell, UK Treasurer: David Porter Glencore Secretary: Karen Mikkelborg Nexen Jim Brush Goldman Sachs Cesar Covarrubias PMI Gordon Fraser Morgan Stanley Tom Lullo BP Kevin Masucci Hess Carolien Ruiter Mercuria Jone Slutas Statoil Mary Dortenzio (as D. Porter designee when required) Joann Bonanno (as G. Spengler nominee when required) Patty Giedris Shell, US (as J. Murdoch nominee when required) LEAP is made up of folks from the oil majors, banks, and independent trading houses. Chevron and Shell currently Co-Chair the LEAP Board of Directors, with James Murdoch, from Shell UK being the other Co-Chair. NEXT SLIDE

Members of the Executive Committee Co-Chair James Murdoch Shell, UK Tone Vaila Statoil Co-Chair Gary Spengler Chevron, US Karen Mikkleborg Nexen, Calgary AB Cesar Covarrubias PMI LEAP EC Blandine Lewine Glencore, US David Porter Glencore, US In addition to the LEAP Board of Directors, we also have an Executive Committee, again with a good cross section from industry representation. We also have good presence in both the US and the UK. Our intent is to influence business on a global basis. NEXT SLIDE David Knipe BP, UK John Herd Glencore, UK

LEAP Accomplishments – A Brief History ISDA adopts v2, creating U.S. Crude Oil and Refined Petroleum Products Annex Pipeline Contracts Master 1.0 LEAP Master 2.1 Canadian Addendum 2.3b LEAP Settlements White Paper draft LEAP DELIVERY JAN-06 | JAN-07 | JAN-08 | JAN-09 | JAN-10 | JAN-11 | Annex C Marine Annex 1.0 First physical oil match on ICE eConfirm ICE eConfirm for Physical Crude Oil in Canada LEAP Master 2.0 adds US crude Canadian Addendum 2.2 Over the past 6 years LEAP has accomplished some significant milestones in the area of automation and standardization. For those of you who may have attended the previous ISDA session, you’ll be interested to hear that LEAP has very good coordination with ISDA. ISDA has leveraged LEAP’s crude Master as the starting point for their physical oil annex. We continue to share as we progress, such as Canadian annex. Master agreements provide the ability to incorporate numerous contracts (100-200) under one electronic agreement. This has the key benefit of mitigating potential risk, and improving efficiencies across front-mid-and back office. NEXT SLIDE Navarik contributes electronic Inspection Data standard

LEAP’s 2011 Key Initiatives

The LEAP 2011 Initiatives LEAP Prime Initiatives NW European Barge Contract (Annex) NA Rail / Truck Contract (Annex) Pipeline Bookouts LEAP Prime Initiatives eDocs (Electronic Cargo Docs) RINs GT&C’s Secondary Initiatives Contract Matching Redesign Inspection Data Standardization Dodd Frank: Issues and Impact Automated OTC Margin Matching Settlement Matching Some of you may be aware of LEAP’s key initiatives for 2011 shown under the Prime Initiatives. Objectives US Pipeline Bookouts – objective is to automate the current manual processs for US refined products pipelines RINS – Renewable Identification Number – There is a need for a clear interpretation and standardization of RINS trading. And, given current annual renewable fuels volume is mandated to increase approx. 180% by 2022, developing a set of balanced General Terms & Conditions (GT&Cs) will greatly benefit all companies involved. Broker Matching – Broker Confirms are often the primary vehicle for trade verification so trade details need to be timely & accurate eDocs – electronic cargo documentation – industry adoption of electronic documents to replace existing manual, multi-copy, and paper-based process N.A Rail/Truck Contract annex NW European Barge Contract annex - Both these annexes were added to the priority list following the last LEAP General Meeting, held in London in Sept. The objective of both is to publish a Trade Annex based on the LEAP Master Agreement. NEXT SLIDE Broker Matching

Other Potential LEAP Initiatives Possible Future Development Settlement Matching Automated OTC Margin Matching Dodd Frank Implications & Impacts In addition to the primary and secondary initiatives, we have several other potential future developments, which will be driven by industry needs identified by the LEAP board members. NEXT SLIDE Inspection Standards Contract Matching Redesign

Levels of Involvement: How To Get Involvement Levels of Involvement: Several levels are available Take a test run as a non-LEAP member Join LEAP as a Full Member (fee is prorated) - Actively participate, vote in the Work Groups, assign a representative to the LEAP Board, become a member of the Executive Committee decision process As a non-member: You are invited to observe the Work Group process, but not actively participate in the meeting dialog or direction  As a LEAP member: The option of Board membership is available (a commitment of 2 hours a month)  Active participation in a Work Group (Initiative) A commitment of resources is expected to staff your Work Group The pay-back is direct influence in the direction of the Initiative and Work Group effort Participation LEAP is looking for new members from the oil, banking and independent trading communities. There are different levels of participation. 8K – Full membership (seat on Board, participate on all committees, guide direction of org, etc.) 12K – Regular membership (1 committee); note no seat on Board 6k – svc providers The conference organizers will be sending out this deck afterwards and the copy you’ll receive contains additional information on the initiatives LEAP is working on. QUESTIONS Next Steps Identify areas of interest (initiatives) that best suit your org Make a participation commitment © LEAP 2011

Where to find out more about LEAP http://energyleap.org/ QUESTIONS Where to find out more about LEAP http://energyleap.org/ © LEAP 2011

Appendix © LEAP 2011

Recent / Current Activity US Pipeline Bookouts Objectives Automate the current manual process for US refined product pipelines Create a standard communication process Leverage Transport4, the de facto standard transaction hub for 12 US pipelines since 1997 Benefits Automatically identify trades that can be offset against one another Find more complex bookouts & minimize product shipped (save $) A clear method for communicating changes to the book or conversions to physical delivery Creation of an audit trail maintained by a disinterested third-part (T4) Applicable to other petroleum types (crude, NGL) and markets (cargo, non-US), assuming user participation is gained Recent / Current Activity Development activity: parameters are well understood, production level software would be ready in 11 months; Require critical mass of users, operational consensus, funding and compliance with Dodd Frank LEAP’s Goal To save companies money by minimizing product shipped by pipeline via an automated solution Provide an audit trail where none exists today

Recent / Current Activity RINs (‘Renewable Identification Number’ – as applies to Renewable Fuel Standard Program ) Objectives There is a need for clear interpretation and standardization of RINs trading the need for a set of balanced GT&Cs that at a minimum, address indemnifications, clarification of RFS2 standards and compliance, risk protections Benefits Current annual renewable fuels volume is 13 Billion gallons and is mandated to increase to 36B Gals by 2022, developing a set of balanced GT&C’s now will greatly benefit all companies involved. Recent / Current Activity Annual Renewable Volume Obligation (RVO) is set yearly by the EPA for each RFS participant organization RIN’s are used to verify each party has met its annual RVO BP and Morgan Stanley are key participants of this Initiative . LEAP’s Goal To develop a set of balanced GT&Cs that will address RIN’s. Involvement to include Non-LEAP members

Recent / Current Activity Broker Matching Objectives Broker Confirms are often the primary vehicle for trade verification Match broker trade details timely and accurately Matching Canadian activity - currently being done on derivatives, US physical products and crudes. Benefits Minimize human error; prompt detection of trade discrepancies; improve accuracy Improve Process Efficiency: Average 5 mins to process a trade, ~10% contain discrepancies Spend work time resolving discrepancies rather than checking correct trades Recent / Current Activity Brokers (US and European) have been signing up at rate of 1 per month LEAP’s Goal Progress this Initiative, we are seeking additional participation and development

eDocs (Electronic Cargo Documentation ) Objectives Industry Adoption of electronic documents to replace existing manual, multi-copy, and paper based process Reduce lost time in document generation, transport, tracking, validation, and (ultimately) invoicing Benefits Overall document accuracy, speed in cargo ownership transition and validation Reduced demurrage, reduced need for LOI’s, allows for timely invoicing, trade transparency (regulatory interest here) Reduces incurred working capital costs when indemnities are required Recent / Current Activity Support of several large integrated Oil Companies already exists Pilot activity is already underway. LEAP’s Goal LEAP’s goal is to accelerate, expand, and automate the process Progress this Initiative: We are seeking adoption of standardized electronic documentation across the industry (oil companies, ship owners)

NA Rail / Truck Contract - Annex Objectives Publish a Trade Annex based on the LEAP Master Agreement Work with vendors to implement electronic matching, and to encourage voluntary adoption within the Industry of these agreements Benefits Reduction of manual effort, errors, and a savings of time & costs Allows the capture of economies of scale Recent / Current Activity V2.1 Pipeline Master published V2.3a Canadian Addendum published V1.0 US Marine Annex published NWE ARA Barge contract Master drafted and reviewed User Guide published LEAP’s Goal Gain better understanding of the roadblocks to adoption Leverage the knowledge gained in past NA contract work Progress adoption and the use of electronic contract matching

NW European Barge Contract - Annex Objectives Publish a Trade Annex based on the LEAP Master Agreement Work with vendors to implement electronic matching, and to encourage voluntary adoption within the Industry of this agreement Benefits Standardization of terms Reduction of manual effort, errors, and a savings of time & costs Allows the capture of economies of scale Recent / Current Activity V2.1 Pipeline Master published V2.3a Canadian Addendum published V1.0 US Marine Annex published User Guide published LEAP’s Goal Gain better understanding of the roadblocks to adoption Develop common wording acceptable to all Progress adoption and the use of electronic contract matching