Multinational Energy Company
Multinational Energy Company Drives Energy Trading Strategy with Real Time Information Web Services
At this global energy company, decision makers gained access to timely, actionable intelligence that helped them bring in $8 million of additional value to their trading book in the first year while meeting other strategic goals and establishing a standardized decision making system for all trading teams.
- Provide a platform that allows key decision makers to access timely, actionable information
- Support company strategic goal of creating new trading opportunities
Maritime with AISLive
- $8 million of additional value to their trading book In the first year of using Maritime
- Customized research and ongoing consultation from IHS Markit ensured unique company strategic goals were met
- Established a standardized decision making system for all trading teams
- Created a system to allow key decision makers to access multiple layers of relevant information including real time visual tracking
- Allowed analysts and traders to track global competitor activity
- Won in 3 categories in annual global innovation awards
Multinational Energy Company Drives Trading Strategy
With significant operations all over the globe, this company is one of the world's largest multinational energy companies. As the company faced the challenge of creating new trading opportunities they reached out to IHS Markit to help them identify and implement strategic solutions.
The Challenge: Create New Trading Opportunities in Real Time
The company had multiple trading 'benches' with a variety of real time information needs. Their unifying attribute was the need to see hydrocarbon ships as close to real time as possible in order to get a global picture of trade by commodity type. The challenge was to isolate just the relevant ships and to make them available on a live basis. Of the circa 65,000 ships fitted with AIS (Automatic Identification System), 12,500 were identified as the key target group of ships to satisfy every trading bench, from the Crude Oil traders through to CPP (Clean Petroleum Products).
Once the 12,500 ships were identified, the next challenge was to select the best method of calling those ships as close to live as possible.
The company had no prior experience of harnessing real time maritime information in their own systems. The scope of what was possible was also at an early stage. On initial investigation there were a lot of disparate sources of information available to them. Until that point they had not pulled together comprehensive ship data, ship ownership data, live ship tracking and ports data. In addition to these initial challenges, they also had no means of visualizing the information to make it actionable.
IHS Markit spent considerable time reviewing the right combination of Maritime services available, with the key objective of being able to get timely, actionable information to the right people at the right time. After describing the ideal solution that they were trying to ultimately get to, IHS Markit worked with the company on an ongoing basis to constantly tweak the web service and the content of that service to accommodate their requirements.
Microsoft Live Earth (now Bing Maps) was chosen as the appropriate visualization tool. This gave them the ability to approach the consumption of many data sets as a series of layers. This GIS (Geographic Information System) layer concept enabled the traders and analysts to see multiple views of information to underpin their trading decisions. Similar Customers have also used Google Earth Pro and for more intensive mission critical applications, one of the ESRI apps such as ArcGIS.
In the first year of using Maritime information, our customer attributed $8M of additional value to their trading book. They also won in three categories in their annual global innovation awards.
By linking sets of data, such as weather and ship type, patterns of trading behavior became apparent. This enabled the analysts and traders to have a clearer idea of the influence of many variables on their trading strategies. It also gave them a clear understanding of competitor activity on a global scale for the first time.
From a start point limited to just reviewing what was available with very few dedicated staff, the Customer quickly realized the value of a GIS approach. As a result, they built a dedicated team who developed the original application and turned it into the core system that all traders now rely on as a critical information decision support tool.
All of the trading teams now have the system at the center of their workflow. They have the ability to physically see the exact location of the ships that are directly relevant to them and take the appropriate action based on that knowledge. In the first year of using Maritime information, our Customer attributed $8M of additional value to their trading book. They also won in three categories in their annual global innovation awards.
Having extracted multi-million dollar value from the ships, ownership, ports and ship tracking information, the next level of information available is also the most recently added capability; Space AIS. Maritime became the first commercial company in the world to fuse the live data from the world's first and largest terrestrial AIS network with the data from the first Space AIS constellation. This state of the art fused dataset is now available as a web service. This breakthrough enables us to track the global hydrocarbon fleet in deep ocean. Adding this new service is the latest chapter in our Customers ongoing development and the results will be profiled in a future case study.
The maritime information is just one element of the information currently in use by our Customer. Their next opportunity is to pull in the relevant information sets from across the IHS Markit energy businesses to create a unified system to visualize upstream, midstream and downstream activities.
For a ready-made product for this sector, Maritime offers AIS Live Premium, which combines satellite and terrestrial data and offers greater visibility of your fleets' deep sea and offshore movements. As an alternative, a bespoke AIS positional data supply can be created to meet our clients' specific needs.
Output from AISLive's combined service