Please answer each object in the scorecard from objectives, measures, targets and initiatives. Including in the finance, customer, internal business and learning n growth. Below is the case study and I have included the score card.

Case Study -

The U.S Shale Boom... and bust

Who produces most of the world's oil? Your first guess may be somewhere in the middle east. Indeed, that area of the planet has long been the center of the global oil market and derives much of its revenue from the export of crude oil. Pointing to Saudi Arabia, Iraq or Iran would therefore be a good guess, but you would be wrong. The United States is now world's largest crude-oil producer, beating out Saudi Arabia, Russia and other countries. This is in large part due to the U.S shales boom in crude oil production since 2014. Shale drover American daily oil output from 8.8 million barrels in 2014 to a record 12.2 million barrels in 2019. As a result, the United States is now king of black gold

Things are not well in the kingdom though. Fuel demand in 2020 plunged by 30% or 30 million barrels a day, as covid-19 pandemic grounded air travel, decreased vehicle usage, and led to a worldwide recession. As a result, oil fields from Texas to North Dakota had to shut off their drills, causing tens of thousands of U.S oil workers to lose their livelihood. The future of the U.S oil industry looks grim with experts predicting over a thousand bankruptcies by the end of 2021.

WHAT IS SHALE OIL ANYWAY

Before we continue any further, it is important to gain a better understanding of shale oil, which is crude oil that lies between layers of shale rock. It's produced by drilling into the shale rock and pumping water, sand and chemicals into it- a process known as fracking. The oil is located thousands of feet deep into the rock, making it quite labor intensive and costly to get. In fact, some experts put the cost of the entire processes at around 60 a barrel. This means that when oil prices dip below 60, many shale oil companies lose money if they continue to operate.

On the other hand, conventional oil is quite cheap to produce because it's closer to the earth's surface and does not require complex fracking techniques. This is the primary way in which the world's other top producers get their oil. Saudi Arabia for instance is able to produce conventional oil for under 10 a barrel, making it more resilient during price slumps.

A FRACTURED CONTROL SYSTEM

The formula for success in the US shale industry was simple. First, if oil prices remain high, there will be enough profit to keep shale exploration and production going. This was the case between 2011 and 2014 when oil prices averaged 90 a barrel. Second, smaller shale companies needed low interest bank financing to stay afloat. And the banks delivered to the tune of almost 250 billion in 2014 alone. The federal reserve also increases interest rates that same year, which many banks were unwilling to lend to shale companies at the same low rates. This is a one-two punch resulted in shale companies having negative income statement and balance sheets filled with debt. Dozens of companies declared bankruptcy in 2016, but those that were able to withstand the storm saw light at the end of the tunnel when oil prices went back up between 2017 and 2019.

The lesson from the 2016 crisis was that shale companies could not simply rely on the market supply and demand to stay afloat. They needed to find ways to reduce their break-even point to stay competitive. Companies such as Occidental Petroleum Corp and CrownQuest were able to reduce their cost to around 30 a barrel, but that means they did not have enough cash to pay shareholders. And even 30 barrels was not enough when the covid 19 pandemic hit. The virus sent oil prices to below 0 a barrel because there was such an oversupply of the commodity in the market that producers could not afford to store it. US shale seemed to hit a wall-floating oil prices were causing havoc on operations while cost could not be reduced any further

Drilling for Data

Advancements in technology may provide hope for an industry on life support. Keep in mind that oil companies haven't typically shied away from technology. French and Italian oil companies total and Eni for instance are owners of some of the top 500 most powerful supercomputers in 2019. The problem is that much of the industry data are never used a lot of data are collected but a lot of it is very isolated, said Binu Mathew, head of product management at baker Hughes. Only a small percentage of it is actually being analyzed.

If oil companies could do a better job controlling their operations in real time they could have competitive advantage, especially during challenging times. This is where AI and data navigation come into the picturing. According to mark Mills, a senior fellow at the Manhattan institute. Bringing analytics to bear on the complexities of shale geology, geophysics, stimulation and operations to optimize the production process would potentially double the number of effective stages, thereby doubling output per well and cutting the cost of oil in a half. Oil companies can use AI and analysts to find the best drilling locations, optimize how and where they steer their drill bits, find the best ways to rupture the shale, and ensure efficient truck and rail logistics.

Shale is a good example of a company using AI and data analytics to its advantage. The company partnered with Hewlett-Packards to developed fiber optic cables that provide sensors throughout the ground. The data from these sensors are transferred to Amazon web Servies cloud based servers to extract and analyze. The results provide engineers with a more accurate idea of what lies below the ground. This is important because drilling in the wrong places can cost companies upwards of 100 million. Another oil giant, Chevron is such a believer in the power of AI and data analytics that is installing around 1 million sensors in a new oilfield it is launching in Kazakhstan in 2022.

Machines are another important part of the equation. Drilling is a continuous process and machines are subject to working long hours under severe temperatures and conditions. AI can help ensure that these machines are working efficiently.

An Accenture and Microsoft survey of oil companies found that 86 to 90% believes an increase in their analytic capabilities would increase the value of their business.

ScoreCard

SCORECARD	Objectives	Measures (what measurement tool did we use to measure our success.	Targets (what is our target number for this objective	Initiatives (strategies going forward)
Finance (what were our finance objectives and how did we do? Did we measure up?
Customer (what objectives did we set to attract and retain customers and how did we measure up?
Internal Business Process (What kinds of objectives did we have to improve our processes? Did we measure up?
Learning & Growth (What kinds of objectives did we have to grow our employees skill and knowledge. Did we measure up?