Allegro: Advanced software for the upstream business
The upstream oil and gas industry is characterized by complexity and constant change: Legal property ownership changes through acquisition, well interests are transferred regularly, production rates undergo alterations based on fluctuations in demand and commodity prices, by their nature, are volatile.
Trading & Risk Management Software: Buy or Build?
While you might be thinking about developing your own software for commodity management in-house,
you have to consider whether doing so makes the most sense. A report from Allegro, "Build vs. Buy,"
explains how a CTRM system may be the right decision instead.
The Benefits of Allegro
Oil & Gas Production Trading
With Allegro, traders have numerous benefits, giving them more opportunities to seek profits. Benefits of Allegro include:
- – Less tedious loading of pricing information and curves, providing more time to actually trade
- – Ability to view metrics by book or trader
- – Timely and accurate valuation of positions
- – Trade strategy analysis with market data and an easy-to-use grid architecture
- – Integration with exchanges and exchange trading
Oil & Gas Production Logistics and Operations
Allegro is designed to monitor physical commodity movements, greatly aiding logistics teams. Benefits include:
- – Accurately tracking and monitoring actuals and allocations
- – Data management and enhanced reporting with built-in views to improve decision-making
- – Pipeline nomination management
- – Interest-owner and gas-balancing management
- – Automated data capture and streaming functionality, from the wellhead to the first point of sale
Oil & Gas Production Risk Management
A critical part of Allegro is its understanding of the need to manage risk. Among the benefits are:
- – Automated retrieval of credit information
- – Greater position visibility
- – Reduced risk of a customer making incorrect payments
- – Ability to connect with multiple systems of record
- – Lower operational risk by virtue of having an integrated, adaptable system
Oil & Gas Production Accounting and Compliance
Allegro can capture all the necessary transactional data surrounding distributions to interest owners. For accounting or compliance professionals, benefits include:
- – Mitigated risk of regulatory compliance errors, therefore reducing the potential for penalties associated with being non-compliant
- – Automation of labor intensive tasks such as revenue distribution, division of interest and severance taxes
- – The ability to calculate a wide range of complex prices and fees
- – A structured approval process for settlements, and an automated revision process for prior period adjustments
Built for Oil & Gas Production
Allegro is designed to make the complex business into a simpler one. Upstream companies face the considerable difficulty of managing production and monitoring and then managing the logistics to get their production to market. Allegro addresses virtually every aspect of the business, from gas marketing to plant management, risk management and pipeline scheduling, transport and actualization, along with equity production, property, production management, revenue, authorizations for expenditures and joint-interest billing.
Each month, producer companies need to forecast production for the next month, while managing production changes for the current month and reconciling actual production for prior months. When upstream customers turn to Allegro's commodity risk management software, they'll find an easier way to manage gas balancing using division orders and information regarding marketing arrangements to determine the appropriate entitlements by interest owner. Allegro is able to calculate interest owner entitlements for daily estimated nominations by calculating the volumes and applying applicable division of interest information. In addition, actual volumes are calculated and captured in the system from meter readings. Actual volumes are allocated back to the well and owner levels. With that, Allegro will also support prior-period adjustments.
Plus, Allegro can be deployed on-site or in the cloud. Because of its flexibility, our CTRM software can meet a customer's specific needs, and it can be extended without having to wait for a new upgrade cycle. With Allegro, front, middle and back office teams will be able to focus on what's important.
"We are satisfied with Allegro's highly flexible, integrated and technically efficient solution and recognize its high potential for further development. It has enabled us to optimize existing business processes – and introduce new ones – within the commodity trading and financial risk management area. Allegro’s solution provides us with a strong foundation to grow our expertise in different commodity classes and to deepen our system's functional coverage with the scalability required for future growth."
"We needed a centralized ETRM system to manage our energy trading business, and we selected the Allegro platform because we found it innovative, sophisticated and adaptable to our trading and risk management needs. We strongly believe that Allegro's technology will help us achieve better portfolio, trade life cycle and risk management, which are ultimately our business goals."
"We are confident that with [Allegro], we can cover our current needs, but will also have the flexibility to extend our business into other areas in the mid to long term future.”