In the rapidly evolving energy sector, companies operating in the midstream segment are under increasing pressure to boost operational efficiency, cut manual errors, reduce risk, and accelerate financial closings.
With the advent of advanced digital platforms, the concepts of midstream automation, midstream software solutions, oil and gas SaaS solutions, and software for midstream oil and gas are no longer optional; they’re imperative.
In this blog post we’ll explore how switching from manual spreadsheets to intelligent workflows fundamentally transforms midstream operations. Also, we will look at how a platform like TIES uses built-in rules to automate even the most complex business logic.
#Replacing Spreadsheets with Intelligent Workflows in Midstream
Historically, many midstream companies have relied heavily on manual processes: spreadsheets, human data entry, fragmented systems, and disparate tools.
The manual spreadsheets can work in simpler cases, but as plant processing, pipeline gathering, storage, and multi-party contracts scale, spreadsheets become brittle, error-prone, and risk-laden.
Enter modern midstream automation via intelligent workflow platforms. These platforms are built specifically for the midstream oil & gas domain: they are what we mean by oil and gas midstream software or software for midstream oil and gas.
They provide modules for allocations, purchases, processing, revenue settlements, reporting, and compliance. They shift data from manual copy-paste into integrated workflows that automatically import measurement data, apply allocation logic, distribute revenue, generate reports, and hand off to finance.
In effect, they replace silos of spreadsheets with a unified digital process.
These workflows enable several advantages:
Reduced manual data entry: Rather than keying volumes, pressures, rates, and contract terms into spreadsheets, systems ingest the measurement, flow, and contract data and apply rules automatically.
Automatic logic and business-rules application: The system knows the allocation methodologies, pricing algorithms, seasoning rules, force-pooling, and reserve deductions, so you don’t rely on ad-hoc spreadsheet formulas.
Better transparency and auditability: Instead of a map of hundreds of spreadsheet tabs, you have traceable workflow steps, logs of data transformations, and audit trails.
Faster responsiveness: When the month-end closes, workflows complete far more reliably and quickly, enabling finance teams to hit their deadlines and deliver insights faster.
Scalability and flexibility: A workflow platform handles growth (new plants, new pipelines, more contracts) without the exponential spreadsheet chaos.
In short: by deploying modern midstream software solutions, companies transform from manual, error-prone, labor-intensive operations into streamlined, automated, efficient processes.
For a more detailed insight, please refer to the following blog: “From Spreadsheets to Smart Systems: Why Midstream Operators Are Automating Core Workflows”.
#Key Midstream Workflow Automation Examples
Let’s look at specific workflow examples in the midstream segment to illustrate how automation delivers value.
Automated Allocations
Allocations in midstream may refer to how volumes are assigned across production, gathering systems, processing plants, residue gas, liquids, and contracts. In a manual spreadsheet world, this may involve copying meter readings, reconciling flows, applying formulas for loss, recovery, and dividing by contract share; then manually adjusting and reconciling. This is slow and prone to error.
With an automated midstream platform, measurement feeds (via SCADA, meter logs, or other systems) are ingested, then the allocation engine executes rules for fixed-recovery, plant-recovery, mole-percent, or other methodologies.
This means what once required manual spreadsheets now happens in a matter of clicks, with audit trails and less risk of human error.
Division of Interest (DOI) and Complex Partnerships
DOI payments and managing interests across partners, cost centres, and assets are complex. Manually, spreadsheets may track cost share, revenue share, taxes, deductions and partner ownership changes.
Automation allows you to model partner ownership, apply standard business rules, calculate DOI payments based on defined logic, and distribute accordingly without human intervention.
This dramatically reduces the time and risk involved in such distributions.
Revenue Distributions and Reporting
Revenue distribution (often after allocations, netbacks, third-party processing, fees, liquids extraction, and transportation) requires rolling up multiple inputs and applying contract logic.
Doing this with spreadsheets often leads to versioning issues, late adjustments, manual reconciliations, and missed deadlines. Automated workflows ingest data, apply the business/contract logic, generate revenue distribution schedules, export to accounting or ERP systems, and generate reports.
Reporting and Month-End Close
The month-end close in a midstream environment is a high-stress, high-volume process involving measurement reconciliations, allocations, partner statements, audit attachments, export to GL/ERP, and regulatory reporting.
Manual spreadsheet workflows slow the close, introduce errors, and increase risk. Automated platforms streamline this by performing the heavy calculation and data-movement under workflow control, reducing human effort and accelerating close.
By automating these workflows, companies can close faster, with fewer corrections, and deliver better financial transparency.
#How Automation Enhances Compliance and Reduces Risk
When you apply automation to the midstream segment, the benefits extend beyond mere efficiency to deeper business-critical impacts: compliance, risk reduction, and improved returns (better ROI).
Supporting Compliance
Midstream operations operate under numerous contractual, regulatory and tax obligations, escheat payments, force-pooling distributions, royalty tracking, partner auditing, measurement compliance, and environmental/regulatory reporting.
Manual spreadsheets make compliance risky: errors, missed deadlines, version control problems, and lack of audit trail.
Automation delivers: built-in logic for regulatory processes, standardised workflows that enforce rules, audit logs, user-access controls, and consistent documentation.
This helps ensure compliance is met reliably and transparently.
Reducing Risk
Human error is a significant risk: mis-keyed volumes, incorrect allocation formulas, outdated spreadsheets, omitted adjustments. These errors can lead to financial losses, partner disputes, audit issues, regulatory penalties, and damaged reputation.
By automating key workflows you reduce reliance on manual entry, eliminate complex spreadsheet chains, embed business rules for consistency, and ensure that traceable workflows protect from error.
Boosting ROI
The faster your systems can close, the quicker insights flow to management, and the sooner you can reinvest, reallocate, or act on data. Automated workflows reduce manual bottlenecks and time-consuming reconciliation processes.
That translates into fewer overtime hours, fewer corrections, and faster reporting. Not only is internal cost reduced, but external value (partners, investors, regulatory stakeholders) is delivered sooner.
Additionally, automation enables scalability: as volumes, pipelines, plants or contracts grow, the system handles the load without proportionally increasing head-count. That drives improved return on investment: lower cost per transaction, fewer errors, faster throughput.
For further insight, please refer to the following blog: “How Automation Is Streamlining Midstream Operations and Reducing Costs”.
#Real-World Case Studies
Scissortail Energy
A subsidiary of Copano, Scissortail Energy operated on an outdated, proprietary plant allocation system. Data access was limited, requiring consultants to extract information, and the system could not support complex allocation methodologies.
Challenge: Limited data access, manual workarounds for DOI and tax distributions, and an inability to model complex allocation scenarios.
Solution: Implemented the TIES platform to provide user-friendly data access and automate the allocation engine for multiple methodologies. DOI payments, tax reporting, and other financial operations were streamlined.
Results: The internal staff gained full data access, eliminating consultant dependency. Allocation processes now run faster and more accurately, compliance has improved, and cost savings have been achieved through reduced manual effort.
Oklahoma Midstream Company
This natural gas pipeline operator and processor faced significant inefficiencies from its reliance on spreadsheets for plant and purchase statement settlements.
Challenge: Heavy spreadsheet dependency made processes slow and error-prone. The system was not scalable to support business growth and integration with a legacy accounting system was difficult.
Solution: Implemented TIES to automate plant allocation calculations and integrate seamlessly with a new accounting system. A flexible allocation engine was configured to handle a complex gathering system, and advanced pricing and fee management rules were established.
Results: Spreadsheet dependency was eliminated, leading to significant improvements in accuracy and turnaround time for settlements. The company now has a scalable operational foundation capable of supporting future growth and acquisitions.
#Conclusion: Automation as a Strategic Imperative
These case studies demonstrate how automation in the midstream sector delivers measurable gains. The true differentiator of a platform like TIES lies in its ability to embed complex business logic into built-in workflows.
For companies investing in software for midstream oil and gas, the message is clear: replacing spreadsheets with intelligent workflow automation is a strategic shift. It reduces manual errors, supports compliance, lowers risk, and boosts ROI through faster month-end closing and scalable growth. In a world of complex contracts and partner relationships, automation is not a luxury; it is a competitive necessity. By adopting a robust platform and embedding automation into your workflows, you transform your operations into a modern, data-driven midstream powerhouse.
