Features
Embracing Digital: Realizing Unfulfilled Potential in Oil and Gas Industry Not l o n g a g o, the c ruc ia l rule of the game was foc used on l arge produc tion. The rul es then s hi f te d - to b e t te r m a rg i ns be c a us e of a s ignif ic a nt imbal ance in demand and suppl y, geo -pol itic al decisi o ns, and low c ru d e p r i ce s. In the c urre nt e conomy, efficiencies in operations is the name of the game and t he i nd u s t r y s e e m s to h ave f ixe d the ir e ye s on one major frontier: digitization
D
igitization, which can be described as collecting, monitoring,
from smar ter exploration, easy capturing of data, robust reser voir
and analyzing huge amount of data, can bring a dawn of new
modelling applications, safer operations, and interoperabilit y of data
operational efficiencies using sensors, increased computational
across exploration ac tivities. This helps not only in reducing costs
power, automation, remote configuration and optimization, control
and better utilization of labor, but also, if done well, in transforming
systems, and even ar tificial intelligence. Analyzing big data is not new
the planning process with predic tive analytics. This provides E&P
for an industr y that has relied on data for decades to understand the
companies with a better shot at anticipating and responding to ever-
potential of reser voirs that hold billions and trillions cubic feet of oil and gas. Yet the industr y, par ticularly upstream, has been struggling to become “more digital.” Many companies are now giving their digital strategies a new lease of life to curb the menace of a rather painful downturn and position themselves for nex t growth cycle. Although the potential benefits of automation in the entire upstream value chain is evident, some of the biggest and impactful oppor tunities exist in production operations. With oil and gas companies looking to deeper seas for resources, any downtime will become costlier than it was at any time before. Automation may create several benefits for operator to that end: asset utilization and integrit y and increased field recover y. There is another oppor tunit y lying ahead, not just for oil and gas producers, but also for drilling operators and oilfield ser vices companies.
changing market scenarios. Payment Process An often neglected area for exploration and production companies is the ability to speed up the ever daunting and slow process of payments in this industry. Some E&P companies are trying auto-executable contracts and quick payments transfer by using blockchain technology that removes the requirement of a mediator to validate transactions. By accelerating the industry’s slow payments process, technology can free up cash for exploration, lower a company’s operating expenses, and contribute to higher margins per barrel. Drilling Contractors Asset Strategy Since the downturn, many drilling operators had either cancelled new orders or refurbished their old rigs to continue working with aging
Digitization is not just about much needed efficiencies; it is also about
assets. Many companies may have to reassess their portfolios, and make sure that they capable of supporting increased activity and new drilling environments. Most will need to redefine their fleets to match those opportunities—and likely will have to expedite retirement of some older rigs. Operators and drillers should collaborate in developing scenarios for balancing the supply and demand of rigs over the long term to reduce
enabling E&P companies to develop power ful capabilities to benefit
the risk of fleet investments.
Digital approach of major upstream stakeholders Exploration and Production companies Smart Exploration
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Offshore World | 30 | December 2019-January 2020
