DECEMBER
2019
EDITOR‘S NOTE
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or the past 12 months, GineersNow editorial team were able to published thought provoking articles pertaining to the Oil & Gas industry. From oil rig automation robots to the most difficult drilling projects, we have written articles that everyone enjoyed reading. On behalf of the GineersNow news team, GineersNow TV crew, GineersNow events management and GineersNow digital, we would like to thank you for making us the number one online platform for engineering community, industrial companies and technology enthusiast in Asia-Pacific. Here are the best stories that went viral in the past 12 months.
January 2019 Energy, Chemicals, Oil and Gas Forecast Despite the setbacks faced by the industry, there is still room for expectations this coming 2019. It is inevitable that the industry will eventually come back to its former glory, thus, all should watch out for possible trends that would come forth once the oil and gas industry recovers.
February Oil and Gas’ Most Effective 4
The Best of 2019 Oil & Gas Digital Marketing Strategy
April
In this specific case study, I have listed the top 30 largest oil and gas companies in the world. What language, keywords and phrases do they use on their websites, blogs, socials and press releases. In my honest opinion, if you understand the language of the oil & gas industry, then you can create an SEO-friendly & compelling inbound marketing content.
Cyber Attacks on Oil & Gas Facilities
March The Impact of Blockchain in the Oil and Gas Industry The blockchain technology can help improve workflow management, reduce operational losses, enhance operational performance and service delivery. It will also have an impact on the supply chain management for better management of the flow of goods and services.
Despite this, a university research study found that 68 percent of oil and gas company respondents have experienced security attacks and that they believe that other attacks may have been gone unrecorded. Meanwhile, another study predicted that cyber-attacks to oil and gas companies may result to losses amounting to $1.87 billion in 2018.
May We Need More Women in the Energy Industry This gender imbalance in the oil and gas industry is both alarming and highly nonprofitable. Most refiners did not realize this until the crude price crash in the market some years ago. Because of the sudden change of the game, the firms thought of changing
their business models as well: to accommodate more women into the workforce and to inspire them to stay by adding extra incentives and facilities that were missing before. Several refiners are even promoting women to executive positions and boosting women leadership to prevail in the organization.
June Like Oil and Water: The Oil Industry and Millennials The older executives of various industries and millennials are vastly different—while the former believes that the money earned is the primary concern for all job hunters, millennials want to affiliate themselves in a work environment that does not compromise the planet and the environment in any way. Millennials also want to leave a world-changing mark upon humanity and uphold the tenants of sustainability. That is why, despite the big salaries that come with working in oil and gas, millennials are turning away from these corporations.
July New Energy Industry Employees – The Millennials Millennials have a drastically different outlook on what they expect from their employment experience. They are well educated, skilled in technology, very selfconfident, able to multi-task, and have plenty of energy. They have high expectations for themselves and prefer to
work in teams, rather than as individuals.
When Petroleum Robots Take Over the Industry
August
As oil companies move out of their conventional oilfields, the risk and hazards drastically increase. Offshore oil locations, although capable of supplying the majority of the oil demand of the globe, pose a considerable risk for human workers. So instead of deploying humans to explore and inspect these sites, automated robots are now set on the oil hunting journey.
The Latest Petroleum Mobile Technology With the constant rise of smartphone ownership comes the continuous surge of various apps to go with it. Apps have found a way to integrate themselves in every aspect of our lives, may it be for paying your bills, shopping online, or entertaining yourself. In fact, there is a dedicated app for almost everything nowadays. While most of these are usually used for fun and entertainment, we can never deny that there are also a plethora of mobile apps that serve their purpose in the fieldwork of various industries.
September Blake Moret, Chairman and CEO of Rockwell Automation Joining the company in 1985 as a sales trainee, Blake Moret worked his way up the ladder and pioneered many innovations in his leadership. It is this personal experience that he learned the three major trends driving today’s industrial environment—the rise of the middle class in emerging economies, the growing need of more digital natives and tech-savvy workers who can quickly take the reins of any tool and system-dependent task, and globalization itself.
November The Latest Oil and Gas Trends with BAUER Compressors Bauer Kompressoren’s TankSafe Nitrogen Blanketing System. This ingenious system creates a nitrogen blanket layer inserting the headspace of tanks to prevent the risk of explosion and reduce tank corrosion. With state-of-the-art products such as the OE13, Rigforce, Bauer NGM, SNGH, and Nitromax, Bauer Kompressoren aims to make the oil and gas industry safer for each employee under its belt.
October 5
CON TENTS
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The Safest Water Dispenser in the Philippines
Revolutionary Women Empowerment in the Oil and Gas Industry
10 How to Find The Magic of Industry 4.0
12 11 Must Have Products In Your Jobsite
18 2019 Oil & Gas Trends & Forecast
40 Digital Marketing in Oil & Gas Industry: How It Works
62 The Potential of Blockchain Technology in the Oil & Gas Industry
114 Like Oil and Water : The Oil Industry and Millennials
132 Millenials Gaming into Technology and Energy
148 Mobile Apps in the Oil & Gas Industry
162 The Journey to a Connected Enterpise
182 How Robots Will Takeover Oil & Gas
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Cybersecurity Risk in the Oil & Gas Industry
The Lates Oil & Gas Trends by BAUER
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Regional Office: LG Electronics Gulf FZE, P.O Box 61445, Dubai. Tel: +971 4 279 9222, UAE, Mr. Amjad Abu Alika, Tel: +971 50 450 9808, email: amjad.abualika@lge.com; Fortune International Trading LLC, Mr. Wail Halbouni, Tel: +971 50 481 3570, email: fortintl@emirates.net.ae; Ghantoot Trading, Mr. Nour Haboush, Tel: +971 50 109 4109, email: nour.h@ghantootgroup.ae; District Cooling Company, Mr. Ahmed Henedi, Tel: +971 50 658 4832, email: ahmed@districtcoolingcompany.com; Al Yousuf Electronics, Mr. Moitra, Tel: +971 50 457 6170, email: pmoitra@alyousuf.com; Bahrain, AJM Kooheji and Sons, Mr. Jayachandran, Tel: +973 36888801, email: v.jayachandran@ajmkooheji.com: Al Babtain Air Conditioning & Refrigeration Co., Mr. Naji Kataya, Tel: +965 5 051 5771, email: nkataya@albabtaingroup.com,kw; BLK, Mr. Imad Rhayel, Tel: +965 5 157 1229, email: irhayel@blk.com.kw; Oman, Oman Gulf Enterprise, Mr. Narender Kumar, Tel: +968 9 747 4505, email: narenderk@otegroup.com; Aspire Projects and Service, Mr. Vivek Wagh, Tel: +968 99357694, email: vivekwagh@aspireoman.com; Azerbaijan, NBC LLC., Mr. Elkhan Sadikhov, Tel: +994 50 216 3363, email: elkhan.sadikhov@nbc.com; Al-Con Maxiwell Group, Mr. Vagif Alexperov, Tel: + 994 50 216 2092, email: maxiwellbaku@inbox.ru; Armenia/Georgia, ARAY Gulf, Mr. Vilson Melikjanyan, Tel: +374 9 307 7755, email: vilson@aray.am; Yemen, Modern House Exhibition, Mr. Khaled Jabr, Tel: +967 71 172 0202, email: mail@mhe-yemen.com; Pakistan, Iceberg Industries (Lucky Goldstar), Mr. Imran Jamil Khan, Tel: +923 21 277 6100, email: ceo@icebergindustries.net
F E AT U R E S T O RY
The Safest Water Dispenser in the Philippines
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hey say that water is the lifeblood of all things. It’s necessary for healthy living and a happy mood. However, the ironic thing is, a lot of people in urban areas in the Philippines just don’t drink enough. For some reason, office workers and frequent over-timers aren’t hydrated enough. It may be the stresses of the corporate life, the stigma that the only beverages one needs in this day and age are coffee and alcohol, or the inadequacy of the current water dispenser in the office. TOSOT may not have a solution to change the working or drinking behaviors of people, it does have one of the best solutions for the third reason: the TOSOT Water Dispenser.
office water dispenser and, while filling their tumbler, thinks about how they can have better quality drinking water—it’s simply an uncommon thought but one that is definitely worth thinking about. Like all things, problems appear when one looks closely and takes in the daily routines of getting water.
Its two types, the Bottom Load Water Dispenser and Table Top Water Dispenser, are kitted with a wide array of features aimed to appease the thirstiest of people.
Luckily, the TOSOT Water Dispenser promises no more lifting and no more back pain when loading a water container. With a 304 stainless water tank, the TOSOT Water Dispenser is a beautifully crafted endorser of ease of use. The bottom loading water dispenser is personally tailor fit for hassle-free wa-
It’s not every day an employee comes up to their
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One such hassle of the everyday drinking water dilemma is the awkwardness of being the person who has to replace the gallon-large bottles of water. For those who actively avoid the gym, this task is counterintuitive—you have to lift and break a sweat to get a cold refreshing drink.
ter container loading, giving even the most averse to the weight rack an easier time with quenching their thirst. All they really need to do is push the large bottle in and you’re good to go! Also, unlike run-of-the-mill water dispensers found in most buildings, the TOSOT Water Dispenser also offers three faucets that pour water with different temperatures: hot, cold, and lukewarm. This eliminates the second type of water-related hassles, which is becoming a chemist as you frantically mix hot and cold together to get your perfect warm water mixture. As a bonus, the TOSOT Water Dispensers also have a certain sleekness to their design. While most people imagine a white, plastic contraption supporting a large, awkward cylinder of water, these dispensers sport a cleaner, sleeker metallic look that fits like a glove to most minimalistic and modernized office and workspaces right now. Common finishes include black, silver, and stainless steel. They are also the perfect size and are able to fit smoothly anywhere. If you’re concerned about where you would place the TOSOT Water Dispenser, then know that both variants have their rightful places anywhere. TOSOT’s bottom loading water dispenser is sleek and flat, and placing this water dispenser in any corner is like fitting the last little piece in the last space of the magnificent corporate puzzle. For a more personalized setup, TOSOT’s table top water dispenser is the perfect low key water dispenser that does not infringe upon the overall theme of the workplace. Lastly, the TOSOT two Water Dispenser variants dispense only clean, high quality water. It’s a simple detail most would overlook, but different water dispensers dispense water that “tastes” different, if only a tad bit. The various tastes are nuanced but ultimately speak a reality about the water dispensers: that both the brand and the model matter. With TOSOT’s two water dispensers, water is purified, cooled to perfection, and comes out looking like liquid diamond. The taste is subtle and perfect for thirsty throats and hits the mark of refreshing all those who need a healthy drink every now and then. So, whether you’re working in a humble start-up
or have cemented yourself in one of the biggest agencies and companies in the Philippines, you and everyone else requires the water of TOSOT’s two types of water dispensers to kit the office pantry, hallways, executive rooms, meeting rooms, and other such places. Because as they say, staying hydrated is good for the mind, body, and soul, and with the TOSOT Water Dispensers just right around the corner, you can constantly and easily stay refreshed, hydrated, and focused as you burn the midnight oil. 9
How to Find The Magic of Industry 4.0 I believe that when it comes to industry 4.0, the true potential of your enterprise is not in what it does, but what it can do. The potential of your team is not what they can do today, but what they could do in the future. The opportunity doesn’t lie in what we know, it’s in what we don’t know yet. The rate of change in the modern world is staggering and it shows no sign of slowing down – in fact, it is speeding up. Industry 4.0 is both an example of this, and a result of it. Digital transformation is at the heart of fundamental societal changes that are emerging. In the region that I lead for Rockwell Automation – specifically the Middle East, Turkey and sub-Saharan Africa – there are huge changes in progress. Let’s start with the Middle East. It’s an area that is no stranger to change, with great cities having risen from the deserts – as well as great economies. And the industrial change in the area now is one of rapid diversification as whole new industries are envisioned at national levels and realized at break-neck speeds. Turkey, the ancient empire(s), bridging Europe with Asia, bridging tradition with future, bringing cultures together, is another market with enormous potential and possibilities for growth, always in a cycle of changes and reinventing itself. 10
The continent where everything started for humanity is set to reassert its position in our future. In sub-Saharan Africa, the population is projected to double by 2050. In fact, in the next 30 years the world’s population is set to grow by an incredible 2bn – an increase of more than 25% - and a large portion of that growth will be in sub-Saharan Africa. This exponential population growth comes at a time when the largest demographic for this region will be of working age – a fact that points to the potential for huge economic growth. Growth, incidentally, that will be championed by the digital generation. The opportunities for industrial enterprises in these regions are evident. There is no doubt that the enterprises meeting the needs of the new markets by leveraging Industry 4.0 technologies and strategies are the ones that will succeed. For most enterprises though, leveraging Industry 4.0 technologies requires strong change management capacity. It requires learning new skills rapidly, investing in the workforce, investing in new approaches, systems and technologies. It requires embracing disruptive technologies – and often it will entail being a positive disruptor.
Finding the Magic We’ve probably all seen the diagram of two circles that don’t overlap, where one is labelled “your comfort zone” and the other is labelled “where the magic happens.” It’s one of those that you look at and instantly recognize the truth of – and perhaps with a tiny sinking feeling as you realize that maybe, you should get out of your comfort zone a little more. The implicit message of that diagram is that “magic” requires change. It is something I believe very strongly, and I’m inspired by the words of Walt Disney (who knew more than most about magic): “If you can visualize it, if you can dream it, there’s some way to do it.” I can’t think of a better message for industrial enterprise leaders in this era of change. We stand with the makers, the doers, the builders; the innovators. Our most successful customers in adopting industry 4.0 approaches have taken the step of visualizing. They have dreamed of what could be done. By coupling this human ingenuity and innovation with the power of machines and Rockwell Automation solutions – we always find a way to do it. That’s where the magic of Industry 4.0 happens. Take a look just outside your comfort zone, the benefits are close at hand, but industry leaders must embrace change to find them. If you can visualize a bright future for your enterprise, come and talk to us, and we’ll help you connect the imagination and ingenuity of your people with the intelligence of machines to make it happen. About Rockwell Automation Rockwell Automation Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and information, makes its customers more productive and the world more sustainable. Headquartered in Milwaukee, Wis., Rockwell Automation employs approximately 23,000 people serving customers in more than 80 countries.
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11 Must Have Products In Your Jobsite A complete job site is a safe job site. It’s how you want things to be, especially for your hardworking men. The work area, like any other office, should have the complete tools to be efficient and time-bound. In other words, these are the necessary tools to have if you want your construction job to be smooth sailing. Here are some of the products you should have at hand in your construction site:
1. WELDING SOLUTIONS The welding equipment is the first thing every job site should take into account. And the best welding solutions come from Lincoln Electric. Their welding machines are extremely versatile and capable of both small home projects and big commercial demands. It works smoothly in soldering various types of metals and has a long lifespan. It is easy to use and has low electric consumption.
2. THREADING & PIPE FABRICATION SOLUTIONS The right product applications of threading and pipe fabrication machines are important for any job site. You wouldn’t want your building to have faulty meager threaded pipes for ventilation. It’ll take a lot more time, money, and resources to redo. When handling pipelines, it’s better to get it right the first time around and trust in the reliable threading and pipe fabrication solutions from RIDGID ®. They have threading and pipe fabrication machines that produce highquality threads and long-lasting pipe dies.
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3. DIAGNOSTICS, INSPECTION & LOCATING SOLUTIONS A construction site needs more than the human eye to determine if the job is done right. We need machines to let the engineers know the blind and weak spots of the job site. Luckily, we’ve got RIDGID ® who produces superb diagnostics, inspection, and locating solutions. Their machines set the standard in durability to finish the job. Their powerhouse diagnostics equipment includes the RIDGID SeeSnake® video inspection systems, the NaviTrack Scout®, RIDGID hand-held inspection cameras, and the RIDGID handheld diagnostic equipment. With these tools at hand, your mind can be put at ease that you haven’t overlooked any important construction details.
4. DRAIN CLEANING Drain cleaning is one of the lesser joys in erecting a building. However, the strenuous task shouldn’t be taken lightly because it’s the plumbing your building will have for a long time. You wouldn’t want your credibility ruined just because the drains are clogged or dirty. With RIDGID’s ® Drain cleaning machine, cleaning drains are easy and long-lasting. Plus, the new RIDGID® FlexShaft™ drain cleaning machines are lightweight, so they’re easy to lug around the Jobsite without requiring extra manpower and effort.
5. POWERTOOLS Of course, no job site is complete without power tools. Your workers need superior strength when drilling through walls, setting a foundation, and more. It’s the heavy-duty equipment every job site needs. And the most premium power grade tools produced only by Dewalt, Bosch, and Stanley. These brands focus on giving your men the power they need in building houses or skyscrapers.
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6. MECHANICAL TOOLS AND OTHERS
9. DOOR HARDWARE SOLUTIONS
Another must-have product every job site needs are mechanical tooling kits and ancillaries. There are plenty of brands in the market but only a few stood out when tested and proven: Proto, Facom, Stanley, and Tactix mechanical tools.
Doors are essential parts of any infrastructure, residential or commercial. So if you’re in a job site, the right door hardware solutions should be kept in your inventory.
They’ve created remarkable products such as the PROTO® Tether- ready tools, lanyards and attachment points with retrofitting capabilities. The complete and cost-efficient Facom® CM.160A 527Pc Mechanical Tool Set. The perfect basic tools every job site needs.
Baldwin, Domakaba, and Yale are well-known choices for door hardware. They offer great varieties of styles, affordable hardware, and even manufactures customized door materials. Chubbsafes is an exceptional safety vault for your valuable items at any given jobsite.
10. PLUMBING SOLUTIONS
The STANLEY® 28 in. FATMAX® Structural Foam Toolbox which can handle medium to large mechanical tools made from durable thermoplastic resin.
Plumbing is an important matter for every job site. Without proper plumbing, your building is in danger of flooding or water damage. That’s an even bigger issue for the future.
And lastly, the Tactix® power tool accessories, which have a longer than usual lifespan from most power tool accessories.
Get it right today with Dyson or Delta plumbing solutions. They provide high-grade piping systems and materials for both buildings and houses. They last longer and offer the more cost-efficient prices compared to other products in the market.
7. LIGHTING SOLUTIONS No job site is complete without lighting solutions. If not, it can pose hazardous threats for you and your workers. We’re talking about men working through the day and the dark of night, so the lighting equipment you should have in your arsenal has excellent quality. Pelican® is now offering the 9490 Remote Area Lighting System (RALS), which is a mobile lighting solution you can whip out any time you want. It has over 6000 lumens and 3 preset light levels. The perfect lighting for construction in dark areas.
8. MATERIAL HANDLING SOLUTIONS Another product every construction site need is a storage space for their materials and tools. Proper storage is vital in any job site, especially when taking tools into account. You wouldn’t want any important equipment to go amiss when you need it the most. For great storage solutions, trust in Storageworks, Durham, Stanley, or Toh. These four brands manufacture great material handling solutions. All of them highly durable with a flexible price range for any budget. 14
11. CLEANING SOLUTIONS Cleaning time is the signal your job is near its end. Finish your new infrastructure with the best cleaning solutions out there from RIDGID ®, Nilfisk, or Viper. They can scrub your job site clean and ready for its occupants. Especially Nilfisk ® which is an established leader in cleaning technology. They offer a wide range of industrial vacuums, sweepers, and scrubbers in the market today. So remember, before starting work at your job site, tick off every single product we mentioned above for a better construction job. It’ll save you both time and effort in the long haul. Apart from efficiency, having all these products also promote the well-being of your workers. Where to Buy? Co Ban Kiat Hardware Inc. is the largest authorized distributor of the best industrial hardware solution brands in the Philippines.
Edsa Corner Shaw Boulevard Mandaluyong City, Philippines Phone +632 6364895 Phone +632 6364896 About CBK Hardware For almost a hundred years, a family’s surname has become synonymous to the country’s biggest hardware supply company. Co Ban Kiat Hardware Incorporated, of the Cobankiat family has a regular client network of more than 1,500 industrial organizations; 1,600 traditional community hardware stores, and 584 home building specialty chain of stores across Luzon, Visayas and Mindanao. This ever-growing conglomerate traces its humble roots to Manila Chinatown, as a pioneer enterprise started by family’s patriarch, Mr. Cobankiat in 1920. Despite the ruins of World War II, the business goes back to its feet in 1948, rebuilding a storefront from the very same spot where it was known for three decades. This ever-growing conglomerate traces its humble roots to Manila Chinatown, as a pioneer enterprise started by family’s patriarch, Mr. Cobankiat in 1920. Despite the ruins of World War II, the business goes back to its feet in 1948, rebuilding a storefront from the very same spot where it was known for three decades. While the Filipinos continue to rebuild their lives post war, CBK Hardware sees the opportunity to introduce the retail concept once unheard for in hardware industry. The Hardware Workshop Store is the fruit if this endeavor. CBK Hardware further cemented its legendary distribution channel with the creation of Coby’ Design Center in Edsa Shangi La in 1996, a specialty store that caters to discriminating taste of modern Filipinos.
To shop online, visit https://www.cbkhardware.com/ Co Ban Kiat Hardware, Inc. Ground Floor Cobankiat Building II 231 Juan Luna St. Binondo Manila, Philippines. Phone +632 2476557 Phone +632 2432734 Coby’s Designer Center Unit 467 level 4 Shangri-La Plaza
In 1997, Mr. Johnny Cobankiat, the 4th generation Cobankiat leader, set another milestone for the company when he brings a franchise of Ace Hardware USA to the Philippines, and signs up CBK Hardware as one of its major suppliers. This further expanded into delivering quality world class products nearer to families of Filipino overseas workers in the countryside. A century’s excellence can quickly pass, and guided by the vision to be the largest network supplier of the biggest global brands in the hardware industry, CBK Hardware resolve to source the best products to supply its customers anytime and every time. 15
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2019
Oil & Gas Trends & Forecast In recent years, the oil supply has gone down rapidly. From 2.5 million barrels per day production in 2014, according to IEA Oil Market Report in December 2017. To accelerate its rebalancing, the Organization of Petroleum Exporting Countries (OPEC) with its non-OPEC members decided to cut the supply by 1.8 million barrels/day. 06 6 18
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OIL & GAS
LEADERS
n the other hand, the chemical industry has experienced growth in the past years due to an effective portfolio restructuring for the past two decades. Moreover, China’s economic growth has required a massive need to import supply from other countries as it cannot stand on depending on its domestic capacity alone. This paved way for the growth of businesses in Western Europe and Northern America.
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Despite the setbacks faced by the industry, there is still room for expectations this coming 2019. The trends that we will tackle today will have a great impact on bringing back the oil and gas industry to its desirable place, balancing prices amidst demands. Furthermore, it will also be a challenging year for the chemical industry as the industry’s return on invested capital (ROIC) performance has become less favorable in the past five years.
As businesses are pursuing a hundred percent digital operation, stringent policies and guidelines are on the rise.
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P O R T F O L I O M A N A G E M E N T & P R O D U C T I O N I N C R E A S E
All industry participants are pressured today as oil and gas supply could potentially crunch while prices keep on plunging. While the US issued waivers for sanctions imposed on Iran, OPEC will keep on protecting the revenues of member countries while
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preventing the US to keep their oil production surging. In the chemical industry, the weakening of the industry’s concentrated structure and the entrance of new players in the markets, resulting in overcapacity, are the factors why the
financial performance of the industry is slowing down. Despite the advanced approaches made, the global demand is declining, specifically in China, where chemicals were once in a good place. Adjusting portfolios is one of the key solutions to strategically improve the market. Much scrutiny is needed in order to remove the assets that do not
OIL & GAS
meet the standards. For example, BP, one of the largest oil and gas companies, has implemented a criterion in which it would only approve new projects that were profitable at less than $40/bbl. This kind of portfolio management, however, should be considerate of the factors affecting smaller and independent companies. Meanwhile, the chemical industry
LEADERS
Adjusting portfolios is one of the key solutions to strategically improve the market. Much scrutiny is needed in order to remove the assets that do not meet the standards.
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is expected to grow at a rate of 2.7% per year to 147.5m tons by 2027, according to the Gulf Petrochemicals and Chemicals Association (GCPA). Saudi Arabia and the US are head to head in chemical production for the coming years. The US will be expected to increase its industry capital spending by an average of 4.7% next year according to the American Chemistry Council (ACC).
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The US will be expected to increase its industry capital spending by an average of 4.7% next year according to the American Chemistry Council (ACC)
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D I G I T A L I Z A T I O N Technological transformation is also rapidly taking place in the chemical and oil & gas industry as companies seek more ways to speed up production and make decision-making better. As the market face high volatility and lower prices, the industry invests heavily on technology to improve production, prevent losses and push for a more sustainable and cost-efficient system. Oil and gas companies are investing in cloud computing services to better manage data across organizations, providing seamless availability and access for scalable computing power. Meanwhile, big data and analytics are also happening in the industry as it allows companies to gather valuable insights from different sectors, giving
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them an outlook of what to ameliorate or upgrade. A growing interest in prescriptive analytics is brewing as this sophisticated methodology can help detect problems in a system and provide exact solutions on-hand. Internal and external data from oil fields are also relevant to keep the process smooth that is why more
businesses are upgrading their digital oilfields which integrates sensors and other advanced devices on pumps and other important parts of the system. Meanwhile, the Internet of Things (IoT) as ever, will provide in-depth information on manufacturing processes and operations which could balance production costs.
The Internet of Things (IoT) as ever, will provide in-depth information on manufacturing processes and operations which could balance production costs.
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C O V E R
S T O R Y
The year 2019 might be just as challenging as the previous year as political and economic issues keep on affecting production and prices. Oil and gas, as a commodity in most parts of the world, will surely make an
impact on the littlest activities of communities, as prices of goods depend on it. Meanwhile, the chemical industry competition will continue to surge to meet the global demands.
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Digital Marketing in
Oil & Gas Industry: How It Works
Here’s a step by step guide for the energy industry marketers. Including the keywords of the top 30 oil & gas companies. Are we on the first page of Google search? Have we made it on top? If not, are we getting there? For most of us, marketing professionals, we ask
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these questions very often. Few of us really know the answer. The tendency of every marketing professional out there is to hire a digital agency who
doesn’t know the industry dynamics of the energy sector.
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o, before you do the same, perhaps you can look into hiring a marketing professional who can guide the marketing department (let’s say, hire me?). As soon as you hire a marketing professional, then the Oil & Gas marketing team will learn and understand the dynamics of content, engagement and digital infrastructure. Once that is achieved, you can then start the agency-hiring process. During the selection process, ensure that they know the difference between downstream, upstream and midstream, offshore and onshore, refining, process, and petrochemicals. The agency should talk and understand the language of oil & gas.
The Oil & Gas marketing team will learn and understand the dynamics of content, engagement and digital infrastructure. 1143
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hey should eat riggings for breakfast and drink crude at night. Print is dead. That’s what the case studies are saying in any business school. Whether Kellogg, Stanford, Harvard or Oxford, they are unanimous in saying that Print is dying and that digital is the way forward. That is the inevitable truth. Marketing professionals who are working in energy, oil & gas or petrochemical companies should now embrace this , or they will be left out, along with the fax machines and cassette tapes.
Print is dead. That’s what the case studies are saying in any business school.
So what is the next big thing in marketing communications for Oil & Gas? Well, you are looking at it right now… You are probably using it 3x-20x per day. It’s in your bag. Yup, it’s digital marketing right inside your mobile devices.
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What we’ve learned from Philip Kotler 10-20 years ago is still valid. The basic principles of marketing will always remain the same.
COVER STORY
What really happened is that the implementation of the basic fundamentals has been disrupted because of the advancement of technology. For
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OIL & GAS
example, the “segmenting-targeting-positioning� that you learned in college is no longer a valid case for some industries, like solar power consum-
LEADERS
er panels, oil pipe suppliers, processed oil manufacturers and small-size power generators.
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BCEO S TVSET R O RSI T E SOORF Y2 0 1 9 Take a look at the case study of Hubspot by Harvard Business School Professor Jill Avery. The concept of segmenting the market, defining your target and positioning your offering is no longer valid. By us-
ing technology, oil & gas companies can do it backwards. From S-T-P to P-T-S, which means Position your offerings, Target the lucrative customers, then Segment which clients will go to the priority list. Hubspot’s
Inbound marketing can be a successful tool for the energy, utilities or oil and gas industry. This will lead me to the second question.
When procurement specialists, maintenance managers, or engineers search for a particular solution, do marketing professionals know which keywords they are using?
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OIL & GAS
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To understand the process of SEO, PPC, and adwords, you need to understand the industry, your competitors and your customers. You need to speak the same language.
world. What language, keywords and phrases do they use on their websites, blogs, socials and press releases. In my honest opinion, if you understand the language of the oil & gas industry, then you can So, how are you going to do create an SEO-friendly & comthat? pelling inbound marketing content. In this specific case study, I have listed the top 30 largest oil and gas companies in the
Using Platts Top 250 Energy List of 2016, I have segmented the list into 5 categories: 1. Integrated oil and gas companies 2. Oil and gas exploration and production companies 3. Oil and gas refining and marketing companies 4. Oil and gas storage and transportation companies 5. Oil and gas companies in Middle East Click here to see the list.
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If I am targeting oil & gas companies, how much do I need to spend for each promotional mix?
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n exhibition will surely cost you a fortune – considering the space, exhibition stand, manpower, collateral and gift items. Depending on your budget and goals, you can allocate 30% – 40% of your marketing budget to events. Exhibitions, conferences, trade shows and other events are still relevant, especially in renewables, utilities, oil & gas and construction industries. However, they are costly and prices vary between $500 – $1500 USD per sq. ft. If you want to meet your existing clients face-to-face, or acquire new leads, or perhaps educate engineers about your oil & gas solutions, then this is a viable marcom plan. But if you are tight on budget and still want a face-to-face engagement with an oil & gas audience, then you can opt for webinars. You can invite petroleum engineers, HSE professionals or maintenance managers and create a 30-minite presentation, plus 30 minutes of Q&A. Webinar in the oil & gas industry is a great tool to showcase your products, educate the audience, or explain your solutions toa niche audience at the comfort of their offices and homes. The difference between the cost of a webinar and a trade show / exhibition is huge. Again, depending on your goals and budget, you may use one of them or both.
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Another 30% – 40% of the marketing budget can (or should) be allocated in transforming your marketing efforts into digital. The marketing migration plan to digital platform should be thoroughly thought
of, and should give premium to security, effectivity and cost-efficiency. If you’re still keeping those clients lists on excel, or maybe using those old CRM platforms that don’t work because the fields are ineffective
BCEO S TVSET R O RSI T E SOORF Y2 0 1 9 and cost-efficiency. If you’re still keeping those clients lists on excel, or maybe using those old CRM platforms that don’t work because the fields are ineffective and they are cumbersome to populate, then it is time to switch to cloud-based CRM. I personally like Salesforce and integrate it with Marketo. They are very powerful, efficient and marketing-friendly tools that will allow you to acquire new clients, monitor reports, analyze data and engage with clients via newsletters, emails and social media. (I am not paid by Salesforce or Marketo, I just like their technology. They fit the oil & gas industry).
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While you are working on your marketing cloud infrastructure, you can still move forward and invest on content, social media, blogs, website media section and online press releases. You need these marcom tools to amplify your key messaging and be seen online.
those key messages to the operations, maintenance, procurement and oil & gas professionals.
Why use these online tools? Well, you might have the best product, let’s say an “offshore pump equipment”, but your marketing team cannot properly communicate to the oil and gas engineers. How would you think will they find those pumps? Therefore, you need online marketing tools to send
When creating a post, blog entry or article, your content should match the search keywords being used by your clients. The oil & gas industry has the most complicated list When creating a post, blog entry or article, your content should match the search keywords. being used by your clients.
The Right SEO for Oil & Gas
OIL & GAS
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The oil & gas industry has the most complicated list of products and equipment, so be sure that you know specifically the keywords. The basic foundation of any SEO is to understand how your potential customers search a product on Google. Understand first your target market, then use a marketing SEO tool. Let’s say you are an aerial access rental company and targeting an oil & gas camp site, you may want to include keywords, such as “boom lift rental in Dubai for oil & gas engineers”. You have the product + location + the industry target. Furthermore, investigate the keywords being used by your competitors in the energy industry and use a marketing diagnostic tool that will populate the word density, then compare, and find out what are the most used keywords from their website pages using tools like SEMrush… wait a minute, this is too detailed and technical… Just drill down on your competitors’ keywords, then analyze the most commonly used keyword. Your oil & gas products or solutions should match what your audience will use when searching Google. After identifying the most used keywords, you can now create compelling stories using the language of your oil & gas clients. Invest on marketing assets like images and videos. Stories with visuals are the most nvest
on marketing assets like images and videos. Stories with visuals are the most powerful way to educate your clients and be seen online. Did you know that millennial engineers and procurement specialists like to watch videos and understand the product specs before recommending a product to their managers? A camera will only cost you $100 – $500 USD, and your phones are also capable of taking high resolution images/videos. Take a photo/video of your operations, products, transportation and activities. Two photos per day is an ideal number of snaps. Next thing you know you have 500+ pics, ready to be posted on social media & blogs.
You should allocate around 20% – 30% of your budget on your external digital communications. Linkedin is best avenue for brand building and lead generation. There’s a gamut of oil & gas engineers, managers and leaders who are frequently browsing on their news feed. Twitter is the best medium for spreading your latest news while Facebook is your best medium to engage with your stakeholders and employees. -end-
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Invest on marketing assets like images and videos. Stories with visuals are the most nvest on marketing assets like images and videos. Stories with visuals are the most powerful way to educate your clients and be seen online.
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The Potential of Blockchain Technology in the
Oil & Gas Industry
Is the industry ready to integrate blockchain technology? Upon hearing the term blockchain, the first thing that will come to your mind is bitcoin and other cryptocurrencies. But blockchain isn’t merely about cryptocurrencies. This technology creates secure ledgers for digital transactions and accelerates
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various online transactions. No wonder why many global business leaders are using blockchain. Oil and gas companies evolved itself into a dataintensive industry with the involvement of the Internet of
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Things, machine learning, and even artificial intelligence. No doubt, the industry has grown and expanded which makes it even more necessary to adopt advanced blockchain technology. Using blockchain can help the industry improve in service
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delivery and operational performance. Aside from that, it can also help oil and gas leaders in many different ways. Let us look into how the oil and gas majors could benefit from its integration of blockchain.
COVER STORY
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Benefits of Blockchain The oil and gas industry needs advanced technologies to improve workflow management and reduce operational losses. The blockchain technology is an answer to that. Aside from the aforementioned, this technology can also help in the betterment of operational performance and service delivery. Supply chain management, which refers to the management of the flow of goods and services, should also be applied. This involves the tracking of raw materials and the improvement of quality control. Blockchain technology can be used in classifying and tracking raw materials to improve quality control. The complete supply chain of the raw materials from the source to end user can be identified and tracked through the distributed ledger system. Blockchain can also help in the preservation of digital data from sourcing the raw materials to trading and reselling the finished product. Potential damage and leakage of sensitive data will also be avoided. Data tracking is easier and more secure with blockchain
technology. It can also help in asset management and in tracking regular maintenance updates. Aside from that, compliance and regulatory matters are made possible through the analysis of recorded data. With blockchain, it is quicker and easier to extract information while ensuring authenticity of data. Manual transactions and third-party involvement can be eliminated since all transactions are already automatic. This results in better customer service, faster, more accurate and cost-effective
processes. It also improves transparency among the parties involved in the contracts since everyone will have access to data. This will result in fewer contract disputes and better flow of the business. Some big names of the oil and gas industry could be at the forefront of the deployment of blockchain technology in the next years to come. This includes Royal Dutch Shell, BP, Gazprom, Statoil, and Repsol.
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Roadblocks to Blockchain Integration The potential of blockchain in the oil and gas industry is palpable. Some executives and leaders of this industry acknowledge the fact that blockchain can help reshape their business. However, not everyone is open to such changes. Others are concerned about possible disruptions and they remain unsure if the technology could counterbalance the risks and investments that are required during first entry. Lack of understanding for this technology leads to doubts on the positive impact it may have in the sector. In a survey conducted by Deloitte in 2016, about two in five senior executives of the US-based companies do not have enough knowledge about blockchain. Meanwhile, around 55 percent believe that their company will be at a competitive disadvantage once they apply the technology and 42 percent think that it has disruptive potential. One reason why executives think this way is due to the absence of adequate proof that blockchain will work for
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the industry. Currently, the technology has very little impact on the oil and gas business which hinders a thorough assessment of its current and future value. However, considering the huge role of the Internet of Things (IoT) in the expansion and growth of the industry, blockchain could be a good vessel to bring this business to higher grounds.
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Data tracking is easier and more secure with blockchain technology.
BCEO S TVSET R O RSI T E SOORF Y2 0 1 9
Will the Industry Use Blockchain in the Future? Acceptance of the latest technological innovation on the operations side is a lot easier for the industry. The usage of hydraulic fracturing, 3-D seismic and other processes are concrete proofs of the industry’s acknowledgment and applica-
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tion of technology. However, there is a different story when it comes to the back-office function. The industry is slow in bringing in new digital technology that can help in the supply management, procurement of goods and even on the finance areas.
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But it isn’t late yet. There is still plenty of time for the industry’s leaders to study and analyze the potential of blockchain in their businesses. Who knows, major oil and gas companies might be considering the blockchain technology soon. It could be one major breakthrough in the industry, but for now, there are still countless hurdles to overcome. -end-
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Cybersecurity Risks in the Oil & Gas Industr y
What IT engineers need to know to safeguard your company from cyber attacks The use of the Internet has both pros and cons. If not prevented, vulnerability to cyber-attack is one downside that can bring dangerous results that can cripple the economy.
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The oil and gas industry is especially at risk of cybersecurity attacks because the vital role it holds in the country’s infrastructure makes it attractive to hackers and a primary subject of political-
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ly-motivated attacks. More than half or 68 percent of the gas company respondents of the study conducted by the Ponemon Institute said that they experienced a security compromise in the past year, which resulted in either loss of classified information or disruption in their operations. A related report by Motorola Solutions predicted that cyber attacks on oil and gas companies will result to losses amounting to $1.87 billion by 2018. As technological advances continue to emerge, the oil and gas industries become more at risk of attacks. Here are seven reasons your company may be vulnerable to cybersecurity threats and how you can prevent the risk of these happening to your company.
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1. Lack of Awareness and Training Even if there have already been developments that maximized the use of technology in the oil and gas industries, there are still tasks that can only be done by humans, which is why proper awareness training is important before they are assigned to any job. In most cases, if trainings and awareness seminars are not conducted among employees, there is a greater chance that an error that will make systems susceptible to attacks will be committed. It should also be emphasized among
employees during awareness trainings that mobile phones they are using carry the risk of being targeted. By regularly conducting trainings and seminars that will make employees realize what cyber security is and how compromising them could be dangerous, the culture of cybersecurity will be instilled. This is a good measure to prevent employees from the wrong use of company systems.
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2. Cost-cutting measures When oil and gas companies settle for IT products that are cheaper, the tendency is that they are also welcoming security risks and vulnerabilities. With outdated control systems, hackers can attack a weak link in the supply chain in order to get to the bigger organization. It is thus important to see beyond the prices of software. Some may be more expensive but they have security features that can save you from millions of worth of losses you are going to incur if you settled for the cheaper and more vulnerable ones. Like everything on the Internet, cybersecurity threats are continuously changing, so it is just rational that the oil and gas industries implement frequent upgrades in their software and infrastructure. Another cost-cutting measure is shifting to remote working arrangements. Hackers can be able to open and do employee tasks without being detected, so it is important that proper security protocols are implemented.
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Because of the vital role that the oil and gas industry play in the economy, the tendency is that hackers would be very willing to hack them
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3. Insufficient data network separation
4. Unsecure data rooms
Investing on systems used to separate data networks is something that most businesses don’t realize they need until they become subject of cyber attacks. Insufficient separation of data can lead to hackers accessing a good deal of classified information.
Because of the vital role that the oil and gas industry play in the economy, the tendency is that hackers would be very willing to hack them. Strict security should be implemented in data rooms through the use of key cards and providing security to data rooms.
Sixty percent of oil and gas companies surveyed said they lack staff that will help them safeguard cybersecurity programs. Meanwhile, less than half or only 45 percent are confident that they have the capacity to handle cybersecurity threats.
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5. Onshore and Offshore Facility In the oil and gas industry, partnership between onshore and offshore facilities is imperative. This, again, involves the use of mobile devices for communication.
Yes, it is important that communication lines are open but caution should be made as if hackers can access even one facility, the two will be affected. This is where the importance of employing a layered communication to keep a seamless communication line for both facilities comes to picture.
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6. Plant Shutdown In the case that the business cease operations, a protocol should be in place to make sure that systems and technologies are secured. Aside from closing down, power interruptions and other concerns may also call for evacuation from the premises so it is important that a remote security system is established. Of the companies surveyed, only 41 percent of oil and gas companies keep track of their digital infrastructure to make sure that threats are identified and prevented. Because of this low figure, they also said they believe that there is a possibility that almost half of cyberattacks they encountered have gone undetected. -end-
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R e v o l u t i on ary Women E m p o w e r ment in the Oil a n d G as Industry
What was supposed to be a “man only” job, women are taking the initiative to achieve gender diversity in the field of oil and gas No more than 2% of the oil and gas corporations located in Western Europe and North America have female superiors. With only around one-fifth of the oil and gas industry’s ranks, women are far less represented than any other primary sectors. To make
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it all worse, when Accenture surveyed some US graduates, only a disturbing 2% of them are considering taking the oil and gas route. “Women are underrepresented in the oil and gas industry,” is truly an alarming statement by
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Katharina Rick, a partner at The Boston Consulting Group (BCG). She co-authored a report with the World Petroleum Council titled “Untapped Reserves” which basically promotes gender diversity in the oil and gas industry. Although she mentioned how companies are encouraging the inclusion of more female employees in the workforce since the late 1980s, the numbers still didn’t exceed the expectations. More female workers are opting to proceed into other industries with health and social work having a 60% 98
female population, followed by finance with 39%. Although there are fewer women in the construction industry with only 11% representation, the oil and gas industry is not far off having only 22%. The reason behind women’s dissatisfaction with the field may be due to the limited resources offered to female employees. Lack of separate facilities such as bathrooms in plants and drill sites is a major no-no. But after the crude’s price
OIL & GAS
crash some years ago, oil corporations are now redefining their workforce. An Ernst & Young Global Ltd. survey in 2016 revealed how gender diversity is essential in boosting the company’s financial performance, with a surprising 61% agreeing to this argument. More companies are now recognizing how much hiring and promoting
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more women in the workforce can enhance their overall profitability. The oil and gas industry is now shifting to include a more balanced organization. At major global oil refineries such as UK’s BP Plc and Exxon Mobil Corp. in the U.S., around 30% of the workforce is now composed of
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HOUSE OF ENERGY & INDUSTRIAL TECHNOLOGIES Serving the Oil & Gas industry for over 13 years HOEIT prides itself as a proud partner to Petro Rabigh and a contributor to the growth of the Saudi Economy.
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women. The women in office-based positions did have an evident increase, but those in the field works are still at a staggering low. That is why Exxon Mobil Corp now encourages more women to take up STEM studies and later on recruit their skills for the betterment of the company. Although this intensive effort to eradicate the women deficiency in the field seems to be a good start, there is clearly more programs and efforts that need to be done. The ratio of the women executive at Exxon may have increased over the course of the decade, but in 2016, it is still at a low percentage of 18%. Meanwhile, at the other side of the world, some of Asia’s major refiners like Idemitsu Kosan Co. in Japan, S-Oil Corp in South Korea, and Reliance Industries Ltd. in India only employ women personnel comprising of no more than 10% of their current population. But even though most Asian firms are lagging behind other regions in the
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world, SK Innovation Co. in South Korea and Showa Shell Sekiyu K.K. in Japan are now focused on having more women on board. Urged by their former European parent company, the Hague-based Royal Dutch Shell Plc, Showa Shell finally took the gender diversity challenge as they employed more female than male last 2017, making 24% of their workforce women. Although the numbers did increase, 108
there is still prevailing gender discrimination in the organization as women are questioned of their capabilities and strengths. There is also a noticeable deficiency of women leaders with only one female representation in their eight-member board and only 13 out of 211 executive positions held by women. To uphold their goal of achieving gender balance, the company is now holding gender diversity seminars and workshops for
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men to understand how vital diversity is in the workplace. Showa Shell also plans to increase woman leadership and targets to double their women leaders by the March 2020. The Japanese and South Korean refiners are also adding extra incentive to attract more women in their organization. To promote women rights as well, the top three Korean firms namely S-Oil, SK, and GS Caltex Corp., have all constructed daycare facilities at their headquarters to aid in their female employees’ needs. Behind the improvements major companies are now offering to women applicants, the field work still pose some challenges, especially for expecting women who may not be as resilient to the tasks assigned. Although this is a major problem in this industry, still more women are encouraged to take on the challenge and be a game changer in this gender-diversity deprived work environment. -end-
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Why the oil industry isn’t a slick career path for millennials
Millennials are the generational equivalent to mass murderers, killing multitudes of businesses and industries in cold blood. Products and services, as well as corporations that are deemed harmful to a better tomorrow are instinctively yet gradually destroyed by millennial inaction. Their immense unwillingness to 114
purchase whatever is offered is a slow-acting poison. Their hit-list is so extensive and all-inclusive: from fanfavorites such as fast food, to the downright deserving such as the diamond industry. But there is no industry that gets as much flak and disapproval than oil and gas— the top priority target in the
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millennial manhunt for unsustainable industries. Millennials refusing to enter into the oil industry to uphold their environmental beliefs is a prime example of this generation’s eagerness to care for nature, butting heads with established conglomerates dead set on creating environmentally harmful energy. While usage of crude oil and petrol is the global norm, it comes at much too high a cost. Because millennials seek to align themselves with more benign companies, sending their resumes to oil industry 116
hiring teams is essentially giving their souls away to the devil. That said, just like all the other industries millennials have offed, the oil industry has become a non-option for the millennials when it comes to finding a career. According to an EY survey published on June 2017, careers in oil and gas have become unappealing for 62% of purposeful 22-to-37-year-old millennials. This is because giving their skills and talents to such an industry will have socio-economic and environmental repercussions in the future. They believe that the oil industry experiencing
a downturn and drought in the talent pool is dwarfed by the adverse, future consequences brought about by these types of fuel. Not only do millennials see the ecologically damaging effects of oil and gas in this industry, but also perceive the political landscape as “unstable, blue-collar, difficult, and dangerous”. So what do millennials look for in a job? One thing people have to know about millennials is that everything they decide (what they buy, where they go, how they behave, etc.) is dictated by their beliefs, which in turn are shaped by their desire to better the bleakness of this world. Their goal is to leave a future-improving legacy, albeit in a realistic way. They are not totally positive or overly negative. They simply choose to make the most of the cards they have been dealt. When they choose to off a certain business, more often than not, they ask themselves, “will the world be better off without this?” As stated in the EY survey, there is a stark difference in what oil and gas executives believe millennials want in a job and what millennials really want. In classic “older executive” fashion, the older generation believes that their younger counterparts care about the technology with which they are working, and view salary as the quintessential prize to be won despite being in disagreement with the company tasks. Also, too much emphasis was put in 117
how getting the work done with the best gadgets and tools are attractive to millennials (43%), but this could not be further from the truth. While salary is still at the top of the millennial priority list, the younger generations seek career paths that offer sufficient work-life balance, job stability and happiness, and more importantly, are aligned with their beliefs. True enough, millennials care little about using technologies in the office, no matter how avant-garde. At only 10%, this was the least important driver in the millennial search for a viable career path. The very nature of millennials,
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in that they are purpose-driven and socio-politically and environmentally proactive directly contradicts the oil and gas industry’s main objective whether they admit it or not. But millennials aren’t just killing the “bad” for the sake of dispensing retribution. In fact, millennials searching for better, more sustainable and least environmentally detrimental alternatives, are how these corporate giants are being “killed”. One falls, another rises. In the context of finding career paths, the younger generations have opted to find jobs in environmental fuel technologies and more companies that offer more nat-
ural fuel systems and energy i.e. a company that is directly opposed to slowly polluting the planet. What needs to be done then, as far as the oil and gas industry is concerned, is an internal audit and inevitable overhaul of their brand, if they still seek potential new hires. A more familial, humane office culture must be fostered in response to the hireand-fire culture to which the older executives are accustomed, as well as a steady flow of incentives for those who have long committed to the industry. That, or up the ante in digital automation to fulfil the least difficult of tasks.
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According to an EY survey published on June 2017, careers in oil and gas have become unappealing for 62% of purposeful 22-to-37-year-old millennials.
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As for the long-term effects of fossil fuels to the ecosystem, it is paramount that oil and gas companies either minimize the destruction their products bring to nature, or find ways to transition to more sustainable and safer alternatives for energy. Lastly, the industry itself must modernize their communication strategy i.e. be able to fit the shoes of prospects and visualize the world from their point of view. Should oil and gas companies begin these next steps, the number of new hires among millennials might increase. But, until then, the oil industry and millennials are mixing like oil and water. -end-
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Not only do millennials see the ecologically damaging effects of oil and gas in this industry, but also perceive the political landscape as “unstable, blue-collar, difficult, and dangerous�.
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Nowadays, only minorities of millennials believe industries behave ethically and business leaders are committed to helping improve. Today’s oil and gas organizations were developed in a time of resource insufficiency to get at those difficult to develop resources, 132
companies built large and composite organizations with strong centralized functions. This kind of model allowed them to wrestle enormous technical challenges, manage great political and operational risks and organize scarce talent across the world as needed. A blunt incompati-
bility between what millennials belief, how responsible businesses should achieve and businesses’ actual priorities to be, this is where counterparts exist.
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Tendencies of Millennials in a Workplace
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ccording to several experimental researches, millennials are trophy-weaned basement dwellers or ruthlessly efficient killing machines, taking down everything. But unless you scrutinize the business press and semi-obscure trade publications, you may have missed the news about the latest trend, the fossil fuel industry. A handful of articles have pointed out that the workforce of the oil industry is rapidly aging and companies are having trouble attracting younger workers into their folds. Millennial is not the average generation. There is a great deal of variation from one
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individual to another within any generational legion. Nevertheless, the particular environment for any generation affects those individuals in ways that are observable as broad tendencies. There are reported tendencies for millennials in the workplace, millennials and technology as well as millennials and culture such as follows: 1. Those who are born between 1980 and 1996 have been called everything from narcissistic to serial job hoppers and allegedly killing industries and even department stores.
2. When it comes to the workforce, millennials stand out as much more mobile than their older counterparts. Based on a recent report, 57 percent of teens now see the fossil fuel industry as bad for society and 62 percent of those aged 16 to 19 say working for oil and gas companies is disagreeable. 3. Millennials dislike the oil industry the most, and listing the oil and gas industry as their first choice on job placement. While many companies are still perplexed as to what attracts and retains a millennial worker, there are clear trends that show what industries and sectors this age group is inclining towards and evading.
OIL & GAS
LEADERS
Millenials Thoughts toward Oil and Gas Industries
The coined word “Millennial� is usually considered to apply to individuals who reached adulthood around the turn of the 21st century. The precise description varies from one source to another. The labor force of the future in the energy industry, oil and gas in particular is often a centerpiece of various alarms
that currently dominate discussion about the energy landscape in the context of energy transitions. There is growing concern that public attitudes toward oil and gas are waning particularly on millennials, this contributes to a workforce shortage that will compromise the long run sustainability of the industry. 135
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This discourse often cites an apparent philosophical preference for renewable energies and technologies. Millennials argue on entering the oil and gas industries because they are concerned about how long the industry will be around and they desire to work in innovative agreeable energy industries. Millennials are much more technologically savvy than previous generations. Younger generations have been immersed in technology their entire lives, playing on tablets, laptop computers and smartphones and having fingertip access to information streams in ways that previous generations did not. Their depth of interconnectedness with technology has created a very different platform for thinking about the world.
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The coined word “Millennial� is usually considered to apply to individuals who reached adulthood around the turn of the 21st century.
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COVER STORY
Relativeness of Millennial’s Skills to their Employment The top growing industries for millennials switching jobs in the last year include technology and software; healthcare and pharmaceutical; financial services and insurance; aero and auto and transport; and architecture and engineering. This growth is contributed to the fact that millennials are much more likely to have
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strong IT, software and programming skills than oil and gas industry, they have more the desire to use such modern technologies and software at work. Millennials are significantly more likely to cite a strong career path and strong employee development opportunities as qualities they
COVER STORY
seek in a job, lending itself to the most frequently cited reason by millennials for leaving a job are lack of opportunities for career advancement. Since technology is generally seen as a growing, supportive industry, it makes sense that many millennials are attracted to the career prospects it seems to promise. If there is any other significant trait of millennials, they are defined as political
generation who lean fairly far to the left. Competition for millennial candidates in these industries has gotten a lot fiercer, and may continue to become more difficult as time goes on while technical skills are always necessary, oil and gas industry still needs the younger and newer generation for their fresh ideas. So, when it comes to killing the fossil fuel industry, millenials game on. -end-
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The majority of the world is now constantly depending on their smartphones and the mobile apps that come with them. In fact, a whopping 25 billion applications have been downloaded from the Apple Store in 2015 alone. Most of these apps are categorized under fun and entertainment, but the functionality of mobile apps are not only limited to this. Plenty of applications are now supporting various industries to aid in the proper organiza148
tion and management of these businesses. The oil and gas industry is no exception to these sectors. As a matter of fact, this industry’s investment in mobile apps and some other mobile technologies will spike to approximately $18.7 billion by 2020 as reported by an American energy research company. Here are a few reasons why investing in mobile technology is a wise move for the industry.
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Reasons for Using Mobile Apps in the Oil and Gas Industry
Collecting Data
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he world has transitioned into paperless transactions, but working in the oil and gas industry meant needing to write down every piece of information gathered in the field. Although this is usually done by geologists, field managers, derrick hands, and other personnel, human errors are always inevitable.
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This is where mobile apps come into play. The accuracy of the data is essential in streamlining the business. With mobile applications to aid in the collection of data, productivity increases as personnel can spend more time in other important tasks rather than consuming the day taking down notes.
OIL & GAS
LEADERS
Gathering Real-time Information
Providing Location
Real-time information is one of the most critical data that keeps the oil and gas industry flowing. This includes mud viscosity and pump rate, to name a few. Having real-time information readily available for supervisors to review helps streamline processes, which then produces high-quality results.
With mobile apps and smartphones to pinpoint the exact location of people and resources, it will be easier for the upper management to assign tasks and organize the workforce with the best possible efficiency. Knowing the location of high-risk areas will also improve safety for their personnel
Mobile applications can gather large amounts of real-time data that can make or break the entire production process.
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Easing Collaboration The oil and gas industry does not only revolve around a single person and decision. It is a collaboration of ideas from various points of the globe, especially for companies with different operations in other countries. Mobile apps bridge the gap between the executives on the other side of the state to the personnel working in the fields. It is imperative that the right information reaches the right person at the right time.
Improving DecisionMaking Aside from better collaboration between superiors and fieldworkers, mobile apps also deliver timely information, thus leading to better decisions and fewer confusions. The tasks are organized and prioritized accordingly, reducing employee mistakes and providing a higher return of investments.
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Mobile apps bridge the gap between the executives on the other side of the state to the personnel working in the fields.
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BEST STORIES OF 2019
Top Nine Must-Download Oil and Gas Apps easy to access and use.
The Oil & Gas Journal To reach more people, the Oil & Gas Journal magazine developed this app. It has statistics, global articles, and note-worthy analysis on the latest news in the oil and gas industry.
Riggertalk Providing users with geographical locations of companies and services, Riggertalk is a definite must-have. Aside from this, the app also contains job search sections for those thinking of venturing into the oil and gas industry.
Convert Units To aid in streamlining processes within the organization, these are among the best apps to download for the oil and gas personnel.
Oil & Gas News Being a product of the Louisiana Oil & Gas Association, this app specifically provides residents at the state of Louisiana with local and associational news about the local Haynesville Shale. However, it also covers national news for nonLouisiana individuals. 158
Oyly Oyly, developed by Roger Baker at Odd Mob Software, provides information about wells such as the amount of produced oil and other technical data regarding reservoir and wellbore.
Oil & Gas Created by Arrow Engine Company, Oil & Gas contains the latest must-know regarding natural gas and crude oil prices. It has updated information and is
Math is vital in the field, especially in oil and gas. Covert Units provides an easy access to the most used metrics such as speed, temperature, and volume. -end-
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A critical requirement of any smart manufacturing initiative is the ability to seamlessly communicate data and information from sensor level all the way up to the enterprise, so the right people have the right information at the right time in the right format. This communication has a proven and pivotal role in lowering total cost of ownership, while improving return on investment and operational equipment effectiveness; and Rockwell Automation is at the technological forefrontof this new pardadigm. “We’ve been in business for 115 years,” explains Rockwell Automation Chairman and CEO Blake Moret, “and we are
now the world’s largest company dedicated to industrial automation and information solutions. Our primary goal is to expand human possibility, by marrying a user’s imagination with our technology to help them deliver the very best possible solutions.” With the words “smart manufacturing” on the mind of every industry executive and decision-maker, one question inevitably asked is: Where do we start? The answer is: At the machine level, leveraging a digital transformation to create smart, connected machines.
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The industrial environment today
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ccording to Moret, there are three major trends driving today’s industrial environment. “The first is the rise of the middle class in emerging economies, which means companies must be able to compete in these markets to gain business from this growing demographic. “Second is a requirement for more people who can deal with new technology: countering the growing skills gap. In the U.S. alone, there are hundreds of thousands of manufacturing jobs going unfilled for lack of people with the right skills and talent. This is also true around the world. People are retiring, and it is a struggle to replace them. 164
“Finally, of course, is globalization itself. We all compete against the very best in the world, all the time,” Moret elaborates. From a technological standpoint the cost of connectivity is falling, delivering a more palatable price point. This leads to wider deployment of smart technologies, which, in turn, is driving greater productivity. Hand in hand with this is the impact of the way operational data is interpreted and subsequently deployed, with, information management and analytics underpinning new-found levels of optimisation.
OIL & GAS
LEADERS
The path towards a Connected Enterprise Rockwell Automation has a strategy to make this all happen. Its Connected Enterprise approach will help companies get to market faster, lower total cost of ownership, reduce unplanned downtime, and manage enterprise risk and compliance.“Connected technology is allowing companies to take real-time operational data and turn it into insights that can unlock another level of opportunity,” explains Moret. ” When we do this well, we can make enterprises more agile and productive by expanding human possibility. ”A digital transformation can transform an industrial company into a better industrial company,” Moret explains. “Indeed, we apply these concepts in our own facilities. They’re not as automation-intensive as many of our customers’ sites, but the benefits have been amazing and they all stem from tackling the the basics.” By understanding work practices and potential savings, Rockwell Automation plants have reduced work in process (WIP), error-proofed procedures and reduced rework. “Results like ‘reduced
time to market’ are tangible and drive sales for us,” Moret adds. “Each plant starts from a unique point, with its own opportunities to add value.”
it does change their work,” Moret adds, “and it provides insights that we can apply to our customers.”
In Phase 2, the company is adding data streams from its supply chains, using the cloud to complement onsite systems. “In the end, it doesn’t reduce the number of people, but 165
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Transformation to the digital oilfield Oil and gas, the Middle East’s primary industrial sector, has entered a transformative era of global competition. This era is rife with fluctuations, as the global oil and gas landscape continues to shift, resulting in uncertainty for economic projections. Furthermore, the implications of today’s industry extend far beyond the latest fluctuations in the global price per barrel of oil. Oil and gas is arguably the world’s most asset-intensive industry, and every additional wellhead, pump and compressor raises a company’s operational complexity. These, often highly 168
dispersed production assets, combined with tightening environmental regulations and a shrinking pool of skilled, in-house expertise, are forcing oil and gas companies to find new ways to optimize production, increase efficiencies, enhance recovery and contain costs. “As with other major industries, the search for solutions is leading to a boom in digital technologies,“ states Moret. “In the oil and gas business of tomorrow, data will be the lifeblood of the digital oilfield and will be the key element in any digital transformation journey in what
is a very cost-competitive market.” Today, integrated control and information solutions – including smart devices embedded in wellheads, on compressors and pump stations – are yielding a new wealth of data. Alongside this, leading oil and gas companies are taking advantage of innovations in industrial Ethernet-based connectivity and advanced analytical software to better leverage the full value of this asset data to achieve higher operational performance.
Improving O&G efficiencies In the oil-and-gas industry, Rockwell Automation’s Connected Production suite – based on the Connected Enterprise vision – is a digital technology that improves operational efficiencies and validates the case for a digital transformation. It connects multiple, disparate systems common to this industry, then cleanses and makes sense of the data. “We understand that a digital transformation in oil-and-gas is a long journey, often starting with pilot plants and limited capital expenditure, so phased implementation is an important aspect of using ConnectedProduction,” Moret explains. “The digitaltransformation journey is constantly evolving from assessment to actual optimisation. It’s not a linear process. We work with our partners in the oil-and-gas industry to assist with assessments, planning, technology integration and early piloting and concepts. Analysis and visualization assistance is also provided to help with understanding. This takes time but pays off for operators.”
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The benefits of convergence Wireless technology, visualization software and other advances now allow oil and gas companies to access and monitor assets in real time, and merge disparate oilfield data into streams of actionable information – anywhere, anytime. As the benefits from the convergence of automation, communications and information technology multiply, oil and gas companies are now truly heading towards digital oilfields. “In addition to providing more secure connections to the data — bringing the silos of infor-
mation together — our ConnectedProduction approach provides a suite of oil-and-gas applications and tools that allow managers and producers to gain operational insights into their operations,” says Moret. “This includes production and operation workflows, automation of manual processes and role-based visualization, so the right stakeholder sees the right information based on that person’s function. It also connects to advanced analytic platforms, allowing operations to gain valuable insights into the process.”
Intelligent assets – from data to decision making While high-integrity data is the foundation of the digital transformation journey, data on its own means nothing. “We combine and unlock the data with competent decision-making to expand what is possible, helping to make our customers more connected, productive, intelligent and ultimately, competitive,” says Moret. A key concept of ConnectedProduction is the idea of intelligent assets. “Intelligent assets are a way to group together software and hardware components in the field and provide automatic configuration,” Moret elaborates. “An example would be a well-pump controller. The ability to automatically connect 170
to an asset, give it context and then automatically generate dashboards, workflows and analytics hugely reduces the number of skill sets needed to configure that asset. The historian, visualization and program are all done automatically by the system.” Moret describes how a customer, through assessment and analysis, had developed an array of manual processes that involved sending engineers to the field to collect data from well pads, before coalescing the data into spreadsheets for analysis related to the level of chemical injection needed to avoid wax buildup, which impacted production. While the analysis was valid, it took time,
and the required resources weren’t always available. Finally, when the resulting recommendations were made to production, it was often too late to take advantage of the analysis. “This same customer implemented our ConnectedProduction solution to gather data from assets, automatically handing that data off to advanced analytics, which provided analysis of the data and made real-time recommendations regarding chemical injection,” Moret explains. “Based on the number of wells on a well pad, the customer is now realizing half a million dollars a year in savings.” Another example of ConnectedProduction was at a large producer with a large installed base of mature and disparate systems, which were used for control and safety. as well as there being many silos of information across different systems, they had workforce issues, too. They didn’t have the skills sets to maintain all the systems and limited capital to upgrade them. This customer turned to Rockwell Automation for services to support a planned migration over time. “By implementing our ConnectedProduction suite, and taking advantage of automation solution services, a standard set of hardware architectures for each of their control systems was created, allowing a phased migration while still connecting the existing infrastructure.”
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BEST STORIES OF 2019
Expanding Human Possibility “In a manufacturing environment we are linking people, machines and data across an entire business – that’s how machine builders and end users become more effective and productive. For machine builders, the focus is on future-proofing an end user’s investment. For end users, it’s about leveraging new smart, connected capabilities to be better able to take advantage of the innovations to remain competitive in the global market.”
Connected people, devices and systems, advanced analytics and modern network architectures are optimizing processes and results in ways previously inconceivable. The business and technology of industrial automation is advancing at a remarkable rate and smart, data-driven manufacturing aided by digital manufacturing is driving automation performance to new heights. Today, the industrial automation industry is signifi172
cantly influenced by the need to achieve improved operational productivity. “To accomplish this, manufacturers are looking for improved equipment efficiency, more effective processes and better informed – and thus better prepared – workers. While technology is the key to achieving all of these, when we combine the strengths of technology with an engaged, enthusiastic and imaginative workforce, anything is possible,” Moret enthuses.
These manufacturers’ critical needs are resulting in innovations in industrial platforms, cloud-based and real-time analytics, secure remote access, virtualization, wireless technologies, mobile apps, connected lighting, workforce safety and support… and more. These developments are supporting a smart manufacturing strategy that helps optimize automation and increase competitiveness, now and into the future. -end-
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BIOGRAPHY – Blake Moret , Chairman & Chief Executive Officer Blake Moret is Chairman and CEO of Rockwell Automation, the world’s largest company singularly focused on industrial automation and information. As CEO, Blake is dedicated to delivering the company’s strategy to bring the Connected Enterprise to life. Under his leadership, Rockwell Automation integrates control and information to help make industrial companies and their people more productive and the world more sustainable. Blake is accelerating the Rockwell Automation strategy by focusing on understanding customer needs and their best opportunities for productivity, combining our technology and domain expertise to deliver positive business outcomes, and simplifying our customers’ experience. Joining Rockwell Automation in 1985 as a sales trainee, Blake has built his career with the company and has held leadership positions in many areas of the business, including international assignments in Europe and Canada. In his previous role, Blake served as Senior Vice President of Control Products and Solutions, one of the company’s two business segments. Blake became CEO on July 1, 2016 and was elected Chairman of the Board effective January 1, 2018. He is passionate about workforce development and creating a diverse worldwide team of employees that can and want to do their best work. Blake serves on the PTC, Inc. Board of Directors, the Executive Committee of the National Association of Manufacturers (NAM), and is a member of the Business Roundtable. He also serves on the board of the ARMI Advanced Regenerative Medicine Institute and the Georgia Tech Advisory Board. Blake is Chairman of the Rockwell Charitable Giving Corporation and is on the board of the United Way of Greater Milwaukee and Waukesha, and the Board of Trustees for the Boys and Girls Club of Greater Milwaukee. Originally from Atlanta, Georgia, Blake graduated from Georgia Tech with a bachelor’s degree in mechanical engineering. He and his wife Cheryl have four children.
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ALLEN BRADLEY How Tradition Drives a Pioneering Spirit A fifteen-year-old tech nerd thinks up and develops a revolutionary new product. Happens all the time. But this is different – because we’re talking about the year 1893. The precocious developer is called Lynde Bradley. At 16, he wins his first patent for an electrically powered wind vane – and impresses his family’s doctor with his grasp of technology. The doctor, Stanton Allen, invests $1000 in the teenager’s fledgling company and after a few years – and many more successful inventions – the Allen-Bradley company is born. Allen-Bradley survived both world wars and the Great Depression to become a leading global engineering company by the 1980s, when it was acquired by the equally enterprising Rockwell International group. Part of the company’s DNA has always been R&D – finding new and better ways to do things. In the early days, some of its new inventions even replaced its own top-selling products, an approach that some found counter-intuitive. By addressing each new technological evolution as it emerged, the firm was always at the forefront of innovation while building on its traditions. In the same way, Industry 4.0 is an evolution, not a revolution in the sense of destroying what has been done before. Manufacturing processes and systems grow organically, adding new technologies to proven ones and innovation to past experience. The secret to being a successful and long-established company is to leverage expertise and know how to innovate, evolve and push boundaries further out. Like vines in a world-class vineyard, the oldest plants have the deepest roots and are considered to produce the very best wine. Since the days of the geek kid Lynde Bradley, Rockwell Automation has always aimed to produce the most pioneering technologies – relying on its very deep roots.
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SENSIA Rockwell Automation and Schlumberger have entered into an agreement to create a new joint venture, Sensia, the first fully integrated provider of measurement solutions, domain expertise, and automation to the oil and gas industry. The new joint venture entity will combine Rockwell Automation’s integrated control and information solutions with Schlumberger’s oil and gas expertise to help customers maximize the value of their investments. Sensia’s value lies in the fact that customers can work with a single source oil and gas automation partner completely and exclusively focused on oil and gas for measurement, data collection, and data-connectivity for everything from optimization to automation. “Oilfield operators strive to maximize the value of their investments by safely reducing the time from drilling to production, optimizing output of conventional and unconventional wells, and extending well life,” said Moret. “Currently, no single provider exists that offers the end-to-end solutions and technology platform that address these challenges. Sensia will be uniquely positioned to connect disparate assets and reduce manual processes with secure, scalable solutions that are integrated into one technology platform.”
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With the depletion of resources and the simultaneous increase in demand for oil products, the oil and gas industry is forced to re-evaluate using robots in their operations. Newly discovered oil fields are typically located in extreme conditions, posing a high risk for the workers. On the other hand, the manufacturing industry is
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already adopting the use of robots in dirty, dangerous, and repeated duties in their factories. Seeing the success of automation in the manufacturing industry alone inspired the integration of this technology in the oil and gas field. Here are some of the top reasons why the use of robots is a potential deal breaker in the industry.
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BEST STORIES OF 2019
Benefits of Robots in the Oil and Gas Industry Better health and safety While safety standards have dramatically decreased the number of accidents in the oil and gas field, there is no denying that working in oil rigs is still a highly dangerous job. Among the primary threats in the oil rigs are hydrocarbon releases (HCR), which are commonly referred to as oil and gas leaks and mostly occur during installation. These unintended releases are likely to cause fire and personal injury. Given this fact, the importance of robotic systems in the field is continuously growing through the years, especially in surveillance and inspection works. The current investment in robotics is a staggering 15% but is expected to boom to 28% in the next five years. Robots in the oil rigs help in operation and maintenance, as well as underwater welding and remote sensing. This will significantly reduce the hazards for the workers in platforms and ultimately increase efficiency while reducing cost. While safety standards have 184
dramatically decreased the number of accidents in the oil and gas field, there is no denying that working in oil rigs is still a highly dangerous job. Among the primary threats in the oil rigs are hydrocarbon releases (HCR), which are commonly referred to as oil and gas leaks and mostly occur during installation. These unintended releases are likely to cause fire and personal injury. Given this fact, the importance of robotic systems in the field is continuously growing
through the years, especially in surveillance and inspection works. The current investment in robotics is a staggering 15% but is expected to boom to 28% in the next five years. Robots in the oil rigs help in operation and maintenance, as well as underwater welding and remote sensing. This will significantly reduce the hazards for the workers in platforms and ultimately increase efficiency while reducing cost.
COVER STORY
Innovative Way of Collecting Supplies Companies are now exploring the potential of oilfields outside of the conventional sites. This is mostly due to the drastic increase in demand for petroleum. In fact, it is predicted that crude oil demand will hit an all-time high in 2040 with 111.1 million barrels/day, as opposed to just more than 90 million barrels
per day in 2016. This demand calls for the addition of autonomous robots into the equation. With robotic aid, oil explorations offshore will be easier and more convenient, not to mention safer and less hazardous for workers. Since most of the offshore oil supplies are
nestled in places with hostile weather conditions, deploying robots instead of humans is probably the best option.
Types of Robots in the Oil and Gas Industry Robots are often comprised of three primary aspects: • Brain – the robot’s intelligence which dictates the scope of activities the robot can do independently • Brawn – the robot’s ability to carry its physical payload • Bone – the robot’s physical
appearance, including its dimensions and weight, which can vary according to the purpose of the robot Here are some of the various types of robots used in the oil and gas field.
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Remotely Operated Underwater Vehicles The remotely operated underwater vehicles (ROVs) are mostly used in restoring and troubleshooting underwater pipeline problems. They are basically robots connected to a vessel through cables and maneuvered by the humans aboard. These ROVs are equipped with video cameras and illumination operations, though some are already deployed with additional sensors such as water samplers, still cameras, light penetration, and manipulators, to name a few. Aside from troubleshooting pipes, they are now also utilized for ocean exploration and equipment installation. Other potential usages are currently being explored as well.
Cellular Robotic Systems The mobile robot structures prove to be a useful tool in the oil and gas industry, especially in the topside operations, topside renovation and repair, and topside inspection and monitoring. The only downside to these cellular robotic systems is that they are required to endure the cruel environments and be able to anchor itself in a stable, robotic manner.
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It is predicted that crude oil demand will hit an all-time high in 2040 with 111.1 million barrels/ day, as opposed to just more than 90 million barrels per day in 2016.
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Subsea Robots While there are numerous oil and fuel reserves inland, most of the reserves are located offshore and beneath the ocean floor. Reaching these reserves is a rather challenging task for the engineers. Personal safety is not the only issue here; environmental insecurities and weather-associated problems should also be taken into consideration. Therefore, deploying subsea robots is the most logical solution to these issues. Subsea robots, which are automatic and no longer need human intervention, can first be set to survey the area before any ROVs are deployed. While there are numerous oil 190
and fuel reserves inland, most of the reserves are located offshore and beneath the ocean floor. Reaching these reserves is a rather challenging task for the engineers. Personal safety is not the only issue here; environmental insecurities and weather-associated problems should also be taken into consideration. Therefore, deploying subsea robots is the most logical solution to these issues. Subsea robots, which are automatic and no longer need human intervention, can first be set to survey the area before any ROVs are deployed. While there are numerous oil and fuel reserves inland, most of the reserves are located
offshore and beneath the ocean floor. Reaching these reserves is a rather challenging task for the engineers. Personal safety is not the only issue here; environmental insecurities and weather-associated problems should also be taken into consideration. Therefore, deploying subsea robots is the most logical solution to these issues. Subsea robots, which are automatic and no longer need human intervention, can first be set to survey the area before any ROVs are deployed. -end-
building
momentum
In an exclusive interview with the Managing Director of BAUER Kompressoren GCC FZE, Colin Fountain talks to GineersNow about the latest trends and economic impact of oil & gas across the globe.
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Your Innovative Future. Our Integrated Solutions.
OE 13®
breathIng aIr cOmpreSSOr SYStem
› ExcEEds cGA stAndArds › GAs monitorinG systEm › dEsiGnEd For oFFsHorE
RIGFORCE™
BAUER NGM™
SNGII®
NITROMAX™
› Air or WAtEr-coolEd › ExtrEmE EnvironmEnts › nEGliGiBlE oil cArryovEr
› Built For oFFsHorE › compAct dEsiGn › rEliABlE n2 sourcE
› dEdicAtEd For Bop › improvEd sAFEty › turn-kEy solution
› diEsEl drivEn › contAinErizEd & portABlE › Fpso liFtABlE
hIgh preSSure aIr & n2 cOmpreSSOr SYStem
StatIOnarY n2 generatIOn SYStem
BAUER KOMPRESSOREN GCC FZE, P.O. Box 261413, Unit # AF07, Jebel Ali Free Zone, Dubai, UAE, Phone +971-4-886 0259, Fax +971-4-886 0260
n2 cOmpreSSOr & bOOSter SYStem
hIgh vOlume n2 generatIOn SYStem
www.bauer-kompressoren.de
Question: Tell me about Bauer Kompressoren
very focused on other Industrial Air & Gas applications.
BAUER is German family owned company having 22 subsidiaries and 15 branch offices worldwide.
Q: What benefits are your compressors designed to bring to the oil and gas industry?
Company’s focus is the manufacturing of high pressure reciprocating compressors & nitrogen generators.
Bauer Compressors are designed to operate in harsh conditions with high ambient temperatures and high humidity.
I am Managing Director of Bauer Kompressoren GCC FZE, which is based is Jebel Ali. From this strategic location, we provide support to our 32 channel partners in the GCC region.
Space is an important concern on the platforms. Thanks to our engineering team for developing compact Nitrogen Generators & Offshore Breathing Air compressor units.
We are market leaders for Breathing Air compressor business in the region but also
We are capable to provide ABS / DNV certification for nitrogen generators. Catering to the recent requirements, we have developed
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ATEX units for hazardous area classification.
Q: What are the latest technology trends and developments around compressors and compressors equipment? Our Instrument Air system is all set to deliver low pressure air without the use of desiccant dryer. This is the future for low pressure oil free air requirements, especially for remote locations where maintenance of desiccant dryers is difficult. We use 7 stage mechanical moisture removal method to avoid the use of Desiccant dryer.
Q: What role does technology and innovation play in the development of your products and how do you ensure you keep up with the latest trends? Everyone talks about automation today and Bauer is absolutely on the top of it with latest PLC control panels used in our compressors. Our control systems allow you to get information through message and through Ethernet using our proprietary app ‘ Bauer Connect’. In addition, IOT (Internet Of Things) option is now available on Bauer Products. By IOT, you can remotely access your compressor, check the operating parameters, performance characteristics. 197
4 N2 GENERATION (DEDICATED FOR BOP)
1 FIREFIGHTING & H2S PROTECTION
3 N2 GENERATION (HIGH VOLUME)
5 N2 GENERATION (FOR COIL TUBING)
2 MOTION COMPENSATION & RIG TENSIONING
1
2
OE 13®
BREATHING AIR COMPRESSOR SYSTEM
› EXCEEDS CGA STANDARDS › GAS MONITORING SYSTEM › DESIGNED FOR OFFSHORE
RIGFORCE™
HIGH PRESSURE AIR & N2 COMPRESSOR SYSTEM
› AIR OR WATER-COOLED › EXTREME ENVIRONMENTS › NEGLIGIBLE OIL CARRYOVER
3
BAUER NGM™
4
5
SNGII®
NITROMAX™
STATIONARY N2 GENERATION SYSTEM
N2 COMPRESSOR & BOOSTER SYSTEM
HIGH VOLUME N2 GENERATION SYSTEM
› BUILT FOR OFFSHORE › COMPACT DESIGN › RELIABLE N2 SOURCE
› DEDICATED FOR BOP › IMPROVED SAFETY › TURN-KEY SOLUTION
› DIESEL DRIVEN › CONTAINERIZED & PORTABLE › FPSO LIFTABLE
BAUER MNG™2
Mobile On Demand Nitrogen Generation System
DURABLE, HEAVY DUTY TRAILER
MNG 2 is engineered for operation in tough road conditions typical in the Oil & Gas Industry
SELF-CONTAINED
Has fully integrated diesel driven prime mover and does no require external utilities for operation
ELIMINATES THE HAZARDS
Eliminates the hazards and injury potential associated with moving DOT bottles from source to point of use and back to source
SIGNIFICANT COST REDUCTION
As compared to purchasing merchant gas in filled DOT bottles or liquid nitrogen tanks
REMOTE DIANOSTICS CAPABLE THROUGH BAUER CONNECT™
www.BauerOilandGas.com
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Bauer Compressors are designed to operate in harsh conditions with high ambient temperatures and high humidity.
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Q: What are some of the gaps that need addressing in terms of product development on the Middle East market? Our experience in the market has taught us that even the Water Cooled Units are not sufficient to work efficiently in the high temperature conditions in some cases. Our air conditioned units are helping to overcome this problem. Containerized units not only prevent the overheating but prevent from dust and allows easy maintenance. References are available in Abu Dhabi.
Q: Has the oil price slump affected you and the market as a whole, and if so in what way? Absolutely! We have seen slowdown in terms of the ‘number of new enquiries’ and also the conversion rates. Many of the big projects are on hold, which is delaying the decision making process. Positive about it is, companies are buying more spare parts / service to maintain existing units instead of replacing.
Q: You also said you are looking to focus on mid-stream oil and gas applications. Could you tell us a little bit more about that? When we talk about midstream, we try to cover pipeline services & LNG transportation. Pipeline services require nitrogen for pigging, inerting, dewatering & drying, pressure testing. We have developed mobile nitrogen generators to support these services in remote locations. For high flow high pressure requirements, we can supply trailer mounted packages and for small duration requirements, we can offer small trolley mounted nitrogen generators. For LNG (Liquified Natural Gas) vessels, nitrogen is primarily used for blanketing and we can offer skid mounted membrane type nitrogen genertator.
Q: Is there anything else that you would like to add? We are diversifying in other industries like Plastic Injection Moulding & Ship building, Gas bottling plants. In the end, I would say, we will always be a reliable partner in Oil & Gas.. ‘Quality is our DNA’ -end203