Forecasting Drilling Bits Demand: A New Horizon for Oil & Gas Supply Chains

This capstone project streamlines the demand forecasting process for drilling bits in the oil and gas industry, crucial for optimizing supply chains and ensuring equipment availability. Focusing on a leading service provider, the study utilized causal and time-series modeling to predict bit runs and revenue for the next 4–6 quarters. Correlating rig counts and market share with bit runs, the model effectively anticipates drilling demand, substantiating its use in SAP's Integrated Business Planning. The forecasting model's application aims to enhance global and local supply chain decision-making, improving resource planning, customer service, inventory, and cash flows. The outcomes represent a substantial step toward more accurate and automated demand forecasting within the industry’s supply chains.