F EA T URES
Unleashing the power of digital There is an enormous amount of interest in the benefits that digital solutions can bring to the upstream sector. By Giorgio Biscardini, Eirik Rasmussen, Dr Reinhard Geissbauer and Adrian Del Maestro In its 2017 Digitisation and Energy
gence; and in the use of integrated
of the North Sea and advanced
report, IEA estimated that digital tech
platforms (connecting the organisation
reservoir modelling.
nologies could cut production costs by
with external partners).
The trend toward digital innovation
as much as 20%. We conservatively
is accelerating across the sector
estimate that use of digital tech
Signs of digital transformation
because companies are much more
nologies in the upstream sector could
emerging
focused on cost and driving
result in cumulative savings in capital
Many upstream companies have for
operational efficiencies in an era of
expenditures and operating expendi
some time been using elements of
relatively low oil prices. Some major
tures of $100 billion to $1 trillion by
digitisation, which we define as the
companies are already fairly far down
2025. Our own experience confirms
strategic business value of data-based
this path. Here are a few examples:
this significant potential. As illustrated
technology that includes the Internet
BP has stepped up its capabilities
in Figure 1, savings can be realised in
of Things (IoT), cloud computing and
by building its own digital work
operational excellence (such as more
artificial intelligence. Examples of
force and running digital boot
efficient maintenance and better
these elements are 3D seismic tech
camps for executives. The company
operation of assets); in the supply
nology, unmanned oil and gas instal
is encouraging its employees to
chain; in the use of artificial intelli
lations in the Dutch and Danish parts
develop apps stored on common platforms to improve workflow processes. It has also created
Efficiency increase from digitisation (% saving on total operating expenditure) 1% - 2%
a “data lake” of more than 1 petabyte, where billions of data
12% - 20%
records from global operations
2% - 5%
are captured and made available to engineers across the firm.
4% - 6%
A petabyte is a unit equal to a million gigabytes.
5% - 7%
Eni has developed its own super Upper range Lower range Operational excellence
Supply chain excellence
Artificial intelligence
Integrated platform
Figure 1.
Automated 52 Unleashing the power of digital Virtual simulation of “first oil” before
engineering, design, manufacturing and fabrication
Automated onshore control
to process data on oil and gas reservoirs. With a computing speed
Total
Source: Analysis by PwC Strategy&
computer, the HPC4, which is used
of 18.6 petaflops (a single petaflop computer can process a quadrillion
