The Project
The energy commodities business moves fast and the business dynamics are ever shifting. Since initially deploying Allegro in the 2010-era, Essentia’s client’s business strategy had shifted. With the North American market evolving substantially and various other competing priorities over the ensuing nine years, the client found themselves approximately 10 versions behind the current release of the trading and risk management software platform.
A large, independent exploration and production company with major positions in the Haynesville & Marcellus shale, the client markets approximately 460 thousand barrels of oil equivalent BOE per day. The Allegro software is critically important to ensuring optimal business decisions for the client; a commodity trading & risk management (CTRM) version upgrade project was necessary.
Client leadership was hopeful that by implementing upgraded software to modernize the organization, advanced software features would better align system capabilities and workflows to the organizations’ current business strategy.
Essentia Provided
In moving from an Allegro 8.x version to the latest “Horizon” release, there were over 3,000 software code updates and changes to consider. Moreover, the client’s technology architecture standards had evolved since the original deployment 10 years earlier and a shift from the Oracle database originally deployed with Allegro to Microsoft SQL Server was needed. Thoughtful, deliberate technology-specific planning and solutioning was required to ensure a successful transition and that total cost of ownership reduction goals were achieved.
Renowned for having the largest group of Allegro software experts, including the visionaries which originally designed, coded, implemented, and supported Allegro in the firms’ years of being the CTRM-industry juggernaut, Essentia put its A-team of Allegro experts on the upgrade project.
Some of the many successful outcomes from this upgrade include:
- Moved from Allegro 8 to the latest Horizon release.
- Moved from Oracle to SQL Server.
- Leveraged cutting edge innovations such as Optical Character Recognition (OCR) and robotic process automation (RPA) to enable automatic trade confirmations.
- Automated the review of thousands of natural gas contracts to identify applicable natural gas contract optionality, pinpointing increased profit opportunity potential on trade timing, locations, and delivery quantities.
- Right-sized and aligned the trading platform to the current-state business strategy to ensure optimal share-holder value is achieved.
Client Benefits
Transforming outdated processes and suboptimal business workflows with upgraded, modern capabilities, the client was able to capture all the process automation potential offered by the latest software version. By retiring the formerly manual, repetitive processes, this upgrade ensured that the required decision-support for optimal trading execution was available to the front office, optimally positioning the client to maximize its long-term value to its shareholders.
Industry
Upstream
Commodities
Natural Gas
Crude Oil
Technologies Deployed
CTRM
Allegro Upgrade
Robotic Process Automation (RPA)
Optical Character Recognition (OCR)
Integration Platform
Reporting Services
Essentia Solution Offerings
Strategic Advisory & Planning
CTRM Implementation
