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When Regulation Matures, Management Must Evolve Alongside It

Tuesday, March 17, 2026

In recent years, regulation of the pipeline sector in Brazil has undergone a clear process of maturation. More structured standards, better-defined requirements, and higher expectations for traceability and governance have become part of operators’ daily routines.In this context, the Regulamento Técnico de Dutos Terrestres (RTDT), established by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis, represents an important milestone.

The Regulation not only introduced new requirements, but also consolidated a broader vision: operating pipelines requires not only robust engineering and well-maintained assets, but also consistent information management processes, reliable records, and the ability to continuously demonstrate compliance.This is a point that often becomes evident only as operations grow or when inspections draw near.

The real impact of regulation on day-to-day operations

In practice, the RTDT reinforces responsibilities that are already part of operators’ routines: monitoring pipeline integrity, performing periodic inspections, keeping emergency response plans up to date, and recording relevant events throughout the asset’s operational life.

The challenge is not understanding what the regulation requires. It lies in sustaining these requirements over time, especially in operations involving multiple shifts, distributed teams, large volumes of data, and different legacy systems.

Over time, common questions begin to arise:

Where are critical operational records consolidated?
How can alignment between inspection, maintenance, and event information be ensured?
How can it be clearly and consistently demonstrated that processes are being followed?

These questions are not merely regulatory; they are operational.

When the challenge shifts from technical to governance

As operational complexity increases, it becomes clear that the greatest risk is not necessarily the pipeline itself, but information fragmentation. Parallel spreadsheets, manual records, disconnected systems, and excessive reliance on tacit knowledge create points of vulnerability.

In this scenario, complying with the RTDT goes beyond meeting technical requirements and starts to involve:

data governance,
standardization of records,
decision traceability,
change management,
and visibility into what is happening across the entire operation.

It is precisely at this point that many organizations realize their processes have grown faster than their management tools.

Technology as a natural extension of processes

When operations demand consistency, traceability, and integration, manual controls no longer scale. Not due to a lack of effort from teams, but because the volume and criticality of information have increased.

Digital solutions then assume a strategic role: not to replace people or procedures, but to organize, integrate, and provide visibility into everything that already exists within the operation.

Platforms for control room management, operational logs, and event tracking become a fundamental link between field activities, the control center, and management.

Where MaCRoM & COSMOS fit into this context

It is at this point that tools like MaCRoM & COSMOS, developed by Tory Technologies, naturally positions itself. By centralizing operational logs, events, changes, and critical information related to control room or measurement systems, these platforms help operators maintain consistency, traceability, collaboration, and an integrated view of operations.

MaCRoM & COSMOS support exactly the pillars reinforced by the RTDT: information organization, process consistency, and the ability to demonstrate compliance based on reliable data.

The result is an operation better prepared not only for audits or inspections, but also for safer, more accurate and more informed day-to-day decision-making.

Conclusion

The RTDT reflects the evolution of the sector. It signals that operating pipelines today requires a more structured approach, where safety, integrity, and governance go hand in hand. For operators, the challenge is not only to comply with the regulation, but to create an operational environment capable of sustaining these requirements over time.

In this context, technology ceases to be an end in itself and becomes a means, a facilitator for transforming regulatory requirements into solid, consistent, and scalable operational practices.

If you want to understand how MaCRoM & COSMOS can help your organization evolve and stand out, contact us.

Tory Technologies, Inc., also known as Tory-Tech, is a Houston-based corporation founded in 2012, that designs, develops, integrates, and deploys intuitive corporate software solutions for Control Room Management and Volumetric Data Management. Decades of expertise in software development and implementation have resulted in a unique suite of solutions specifically designed to solve critical challenges in control rooms and flow measurement departments.

Interested in working with a SOC 1 and SOC 2 compliant company? Contact us to learn more about our control room management software, MaCRoM®, and our volumetric data management software, COSMOS®.

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Why Measurement Uncertainty Matters More Than Ever in the Hydrocarbons Industry

Name: COSMOS
Author: Tory Technologies, Inc.

Admin
Nov 30, 2025
4 min read

Accuracy in the hydrocarbons industry is essential for financial outcomes. Whether you’re producing, transporting, or refining oil and gas, the accuracy of your measurements directly impacts your bottom line. And while error margins have long been monitored, measurement uncertainty is now taking center stage.

By definition, measurement uncertainty is a parameter associated with the result of a measurement that characterizes the dispersion of values that could reasonably be attributed to the measured quantity. In other words, it expresses the doubt about the exactness of the measurement result. This uncertainty arises because every measurement is influenced by multiple external factors, such as instrument characteristics (resolution, stability, calibration error), environmental conditions (temperature, air currents, nearby heat sources), measurement method, and operator handling, among others. Every measurement, no matter how advanced the instrument is, comes with uncertainty.

The purpose of estimating measurement uncertainty is to quantify the combined effect of these factors and provide a confidence level for the measurement result. It ensures transparency and reliability in decision-making, compliance, and operational processes

The Guide to the Expression of Uncertainty in Measurement (GUM) provides a standardized methodology to quantify these influences, helping operators understand the reliability of their data. For example, measuring ambient temperature involves not just the thermometer, but also air currents, nearby heat sources, and even the person taking the reading. Each factor contributes differently to the final uncertainty value.

Why It Matters in Hydrocarbons

The American Petroleum Institute (API) validates the GUM methodology in its MPMS 13.3 standard. In an industry where millions of barrels are moved daily, even a small uncertainty can translate into a significant financial impact. A 0.2% uncertainty in a 1-million-barrel operation could mean a $200,000 swing daily.

Measurement uncertainty affects every link in the supply chain. Producers rely on accurate volume data for royalties and financial reporting. Transporters need precision to manage custody transfers and losses. Refineries depend on reliable inputs for efficient processing.

The Problem with Static Uncertainty Values

Many companies apply a fixed uncertainty value across all systems and timeframes. But this approach can mask real losses or misattribute them. For example, assuming a station has a 0.5% uncertainty, when it’s actually 0.2%, could hide 0.3% worth of unaccounted losses.

Daily or ticket-level uncertainty calculations provide a more accurate picture. They help teams distinguish between true losses and measurement variability.

Observed Situations in Oil & Gas Operations

Based on real experiences and observations at oil and gas operators, the following situations have been identified:

Static Tank Measurement: Crude oil tanks with capacities up to 150,000 barrels have demonstrated uncertainty levels varying from 0.14% to 0.24%. These fluctuations depend on factors such as the fill level and liquid temperature, resulting in differences that can equate to swings of 140 barrels.
Pressurized Tanks: In gas systems, pressure is a dominant factor, contributing up to 88% of the total measurement uncertainty. Even minor changes in system pressure or small errors in pressure transmitters can cause the overall uncertainty to shift significantly, from as low as 4% to over 11%.
Natural Gas Measurement: Daily changes in pressure and temperature have a notable effect on measurement uncertainty. For instance, a temperature variation of 35°F can lead to nearly a 1% increase in overall uncertainty.

The Financial and Operational Impact

Measurement uncertainty has a direct impact on several critical aspects of operations. First, when uncertainty is misestimated, it can distort the reporting of losses on balance sheets. Additionally, accurate volume measurements are essential to ensure fair payments for royalties and billing purposes.

Reliable data also supports better operational decisions, as improved information leads to more informed choices. Although companies often invest significant resources in calibration, advanced equipment, and regular audits, neglecting to properly account for measurement uncertainty can undermine all these efforts. Calculating uncertainty on a ticket-by-ticket basis is crucial for maintaining transparency and accuracy throughout the entire operation.

COSMOS Expanding FLOWCAL Functionality for Uncertainty Calculations

To address the evolving requirements for efficiency within oil and gas operations, COSMOS now extends the core capabilities of FLOWCAL by introducing a dedicated module for measurement uncertainty estimation on a ticket-by-ticket basis. This module is designed to provide operators with an accurate and dependable means of quantifying uncertainty for each individual measurement.

The COSMOS module integrates data sourced directly from FLOWCAL, combining it with instrumentation information consolidated from TESTit. Through this approach, users are empowered to assess the specific uncertainty associated with every measurement record, rather than relying on generalized or static values. This ensures that the estimation of measurement uncertainty is both precise and tailored to the actual operational data, supporting improved financial reporting, operational efficiency, and regulatory compliance.

Conclusion

In today’s hydrocarbons industry, measurement uncertainty is no longer optional; it’s strategic. As technology advances and regulatory expectations rise, companies must move beyond static assumptions and embrace dynamic, data-driven uncertainty analysis. This not only improves measurement but also safeguards revenue, boosts compliance, and supports operational integrity.

COSMOS, in collaboration with FLOWCAL, delivers a comprehensive platform for managing volumetric data; this platform not only validates the integrity of measurement data but also provides robust estimation of uncertainty levels for each record. By systematically evaluating and quantifying uncertainty with COSMOS, operators gain confidence in the reliability of their measurements.

Furthermore, COSMOS enables the identification of individual sources contributing to overall measurement uncertainty. By isolating and understanding these factors, operators can implement targeted improvements and maintain transparency throughout the measurement process. This structured approach ensures that data quality is upheld and that all uncertainty contributors are clearly recognized and managed.

Interested in working with a SOC 1 and SOC 2 compliant company? Contact us to learn more about our control room management software, MaCRoM®, and our volumetric data management software, COSMOS®.