Accounting for crude oil loadouts has traditionally relied on paper oil run tickets. Although this legacy method works, it has inherent vulnerabilities, including the occasional missing run ticket. A missing run ticket can mean having to make an inefficient prior period adjustment at best, or unaccounted revenue at worst.
In this article, we cover how Engage Mobilize’s Missing Ticket Report reduces risk and boosts the productivity and efficiency of closing the crude oil revenue books.
The Vulnerabilities of Paper Oil Run Tickets
The vulnerabilities of a paper-based oil run ticket process are evident. Employees may forget to create an oil run ticket after a loadout, tickets can get lost in the shuffle of paperwork or they can “escape” from a damaged mailbox at the well site.
Even digital processes can experience the occasional glitch. For example, if an electronic ticket is missed in the data transfer, it can get overlooked or even charged to the wrong tank. That has implications for revenue recognition, royalty payments and even production reporting
The consequences of these oversights can be substantial, considering the value of a crude oil load. A single missed oil run ticket for a 180-barrel load, using a conservative estimate of $75 per barrel, results in a loss of $13,500.
Even if a missing ticket is eventually found, it typically results in an inefficient prior period adjustment, impacting both financial statements and production volumes used by operations personnel and engineers.
The Answer – The Missing Ticket Report
Engage Mobilize's Missing Ticket Report proactively identifies missing tickets, automatically. Leveraging the data input by crude haulers into the Engage Mobilize E-Ticketing platform, our technology automatically monitors run ticket creation after each crude oil loadout. By cross-referencing tank level data with generated run tickets, the Missing Ticket Report instantly identifies any discrepancies.
How it Works
The Engage Mobilize E-Ticketing platform integrated with your SCADA data system monitors crude oil storage tank levels. When E-Ticketing detects a decline in crude oil tank volumes at a specific well site or facility, it automatically searches for an associated crude oil run ticket to document the loadout. If it fails to find a relevant ticket, the system promptly flags the event as a potential missing ticket, alerting the necessary personnel for immediate action.
The checks and balances built into E-Ticketing provide additional assurances for manual orders and frequency of loadouts. For example, if the normal frequency of oil run tickets for a well site is 15 days, but the system detects that the last ticket was 30 days apart, then it will be flagged on the Missing Ticket Report for investigation. That gives you time to analyze the situation and determine if there is indeed a missing ticket before the oil revenue books close. This ensures you recognize all your revenue and get paid. Additionally, finding missing tickets before closing the crude oil revenue books increases your efficiency and reduces prior period adjustments.
How You Use It
Integrating the Missing Ticket Report into your operations is simple. Engage Mobilize provides user-friendly interfaces and intuitive dashboards that make it easy to access and interpret the data. The report can be customized to fit your specific loadout locations, helping you keep track of critical information in real-time.
Reduce Risk - Get Paid for All Your Production. By eliminating the potential for missing oil run tickets, E-ticketing and the Missing Ticket Report ensures that you get paid for every barrel of oil produced.
Improve Productivity - Identify Missing Tickets in Real-time. Real-time identification of missing oil run tickets allows you to address potential discrepancies promptly. This immediate feedback loop empowers your team to take swift corrective action and eliminate inefficient prior period adjustments.
Boost Efficiency - Close the Oil Revenue Books Faster. With the Engage Mobilize Missing Ticket Report, the loadout ticketing process becomes more efficient and streamlined. By reducing the time spent manually cross-referencing data and resolving discrepancies, you can close your oil revenue books faster, enhancing overall operational efficiency.
Balance Vendor Invoices Quicker. Accounting for all oil run tickets in real-time speeds the reconciliation and balancing of vendor invoices.
Engage Mobilize's Missing Ticket Report eliminates many vulnerabilities of the traditional paper-based ticket system and leverages electronic data to help you work smarter. By automating the identification of missing run tickets, Engage Mobilize technology helps oil and gas operators reduce risk, improve productivity and boost efficiency, ultimately maximizing revenue and optimizing operational processes.
Don't let revenue slip through the cracks due to missing run tickets. Call (720) 575-6695 or email Sales@engage-m.com to learn how the Engage Mobilize Missing Ticket Report can help you take control of your crude hauling processes and achieve new levels of efficiency in the field and back office.
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