Case study · Oil & Gas

Blending optimization: $120k/month margin increase

A downstream operator was blending streams using static rules tuned years earlier.

Outcome

$120k

per month margin increase

Problem

A downstream operator was blending streams using static rules tuned years earlier. Sensor drift, changing feedstock chemistry, and shifting market premiums meant the blending strategy was leaving margin on the table — but no one could quantify how much.

Approach

R2 wired live sensor data into a machine-learning blending model that re-tuned blend ratios against current quality and price. The output flowed into an Excel-based financial model the trading desk already used — so the recommendation landed in their workflow, not in a separate dashboard.

Result

Blending optimization delivered $120k/month margin increase, sustained. Quality-spec adherence improved at the same time — the model was constrained, not unconstrained. Machine learning surfaced optimized cases and the automation found “sweet spot” operating cases the team had not tested.

From the engagement

What the work produced.

Engagement output — blend scenarios

Bar chart of margin per blend scenario across roughly seventy simulated cases, with the baseline case marked at the left and a single higher-margin outlier highlighted mid-range.
Every blend scenario ranked by margin. The baseline sits at the left; the case the automation surfaced sits mid-range, in a region the team had no reason to test by hand.

Technologies & methods

The stack behind the outcome.

  • Machine learning (Python)
  • Live sensor / SCADA integration
  • Excel financial model
  • Constrained blending optimization

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