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Oil & gas — tank storage & custody transfer

The problem. A tank terminal holds millions of barrels whose value turns on one thing: that the books match the tanks. Every custody transfer in or out is metered, and the measured volume in the tank should move by exactly that amount. When it doesn't — when there's an unexplained loss — it's an evaporation issue, a measurement error, a leak, or theft, and each needs investigating fast. The challenge is reconciling metered movements against measured inventory continuously, not at month-end.

What we solve here is keeping book and physical inventory in agreement, and flagging the gap the moment it opens.

Set up demo data​

New workspace? Run this once (Python) to create the tank's volume and metered-movement series with a built-in discrepancy — the measured drop is larger than the metered deliveries, so the reconciliation flags an unexplained loss. Safe to re-run.

import intellistream_datahub_sdk, numpy as np, pandas as pd

client = intellistream_datahub_sdk.DataHubClient.from_env()

idx = pd.date_range(end=pd.Timestamp.now(tz="UTC"), periods=12, freq="1h")
# measured volume falls 3000 bbl over the shift
client.timeseries.create([intellistream_datahub_sdk.TimeSeries(external_id="tank_t_12_volume_bbl", name="Tank 12 volume", unit="bbl", value_type="float")])
client.timeseries.insert_from_lists(timestamps=idx, values=np.linspace(50000, 47000, 12), ts="tank_t_12_volume_bbl")
# but only 2500 bbl was metered out → 500 bbl unexplained
for s, total in [("tank_t_12_receipts_bbl", 0.0), ("tank_t_12_deliveries_bbl", 2500.0)]:
    client.timeseries.create([intellistream_datahub_sdk.TimeSeries(external_id=s, name=s, unit="bbl", value_type="float")])
    client.timeseries.insert_from_lists(timestamps=idx, values=np.full(12, total / 12), ts=s)

1. Reconcile movement against measurement​

Compare the tank's measured volume change over a period against the net of its metered transfers. A gap beyond tolerance is an unexplained loss.

// measured volume now vs the start of the shift
double opening = firstValue("tank_t_12_volume_bbl", shiftStart);
double closing = latest("tank_t_12_volume_bbl");
double measuredChange = closing - opening;

// net metered movement over the same period (receipts − deliveries)
double metered = sum("tank_t_12_receipts_bbl", shiftStart)
               - sum("tank_t_12_deliveries_bbl", shiftStart);

double unexplained = measuredChange - metered;
if (Math.abs(unexplained) > tolerance(closing)) {
    EventModel loss = new EventModel();
    loss.setExternalId("inventory_discrepancy_t12_" + System.currentTimeMillis());
    loss.setType("inventory_discrepancy");
    loss.setStatus("open");
    loss.setMetadata(Map.of("tank", "tank_t_12", "unexplained_bbl",
                            String.format("%.1f", unexplained)));
    loss.setEventTime(shiftStart);
    client.events().create(List.of(loss));
}

2. Watch tank conditions​

Level, temperature and pressure are series per tank; trends catch a tank breathing abnormally or a level moving with no scheduled transfer — an early sign of a leak. See Query & aggregate.

See the result​

The reconciliation compares the 3000 bbl the tank actually lost against the 2500 bbl that was metered out — and flags the gap:

unexplained_bbl ≈ 500.0     → an inventory_discrepancy event is raised for tank_t_12

See also​