Scribd
Upload
128 views13 pages

Digital Transformation in Oil & Gas

The document discusses digital transformation opportunities in the oil and gas industry. It notes that while the industry has traditionally focused on increasing production, recovery, and throughput, digital adoption has been slow due to long investment payback periods and internal barriers. However, increased digital adoption could boost GDP growth. The document outlines challenges to digital adoption in the industry and describes how analytics, sensors, automation, and other technologies can create value across the upstream, midstream, and downstream segments of the industry value chain. Examples of digital solutions that have improved surveillance, materials management, and innovation are also provided.

Uploaded by

himshikha himshikha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
128 views13 pages

Digital Transformation in Oil & Gas

The document discusses digital transformation opportunities in the oil and gas industry. It notes that while the industry has traditionally focused on increasing production, recovery, and throughput, digital adoption has been slow due to long investment payback periods and internal barriers. However, increased digital adoption could boost GDP growth. The document outlines challenges to digital adoption in the industry and describes how analytics, sensors, automation, and other technologies can create value across the upstream, midstream, and downstream segments of the industry value chain. Examples of digital solutions that have improved surveillance, materials management, and innovation are also provided.

Uploaded by

himshikha himshikha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

DIGITAL

TRANSFORMATION
IN OIL & GAS
INDUSTRY
OIL & GAS INDUSTRY
Oxford Economics predicts
 The O&G industry has focused on increasing
production, recovery and throughput for years that increased digital adoption
 Heavy capital investments, extended pay-back periods by the O&G industry could
and internal operational barriers have prevented
O&G firms from realizing full value result in GDP increase by 0.5
 O&G firms are very conservative in implementing percent and 0.8 percent by
smart field technology
the end of 2025
CHALLENGES

Reasons for slow adoption in O&G industry


 TIME (to reach full deployment )
 Fragmented implementation
 Preference to buy COTS (commercial
off the shelf
 Most O&G companies often view
anything IT, data, or digital as activities
not related to core business.
OIL & GAS INDUSTRY - VALUE CHAIN
OIL & GAS INDUSTRY - VALUE CHAIN - UPSTREAM

 Analytics is used in
 Seismic data processing,
 Predictive maintenance
 Drilling
 Digital oilfield initiatives
 Wearable technology
 Field automation technologies - real-time work scheduling
 Wireless sensors - asset tracking and condition monitoring
 3D scanning technology - virtual asset representations
 Drones and smart robots – inspection of sites
SIX AREAS OF DIGITIZATION EXIST FOR SIGNIFICANT VALUE
CREATION IN UPSTREAM OPERATIONS
OIL & GAS INDUSTRY - VALUE CHAIN - MIDSTREAM

 Advanced measurement devices are prevalent in


midstream firms. Examples -
 Electronic flow metering technology,
 Data-intensive pipeline inspection gauges (pigs),
 SCADA and
 Digital sensors
 Opportunity
 Use of drones to perform pipeline flyovers
 Use of data for safety, pipeline integrity and
asset management.
OIL & GAS INDUSTRY - VALUE CHAIN - DOWNSTREAM

 O&G plants and refineries are automated


 Equipment are under constant surveillance
 Process analytics and simulations enable operators to predict the
effects of changes in the system.
 Embedded smart sensors in vessels, tanks, compressors and turbines to
monitor processes and provide diagnostics for issues.
 Opportunities:
 Connecting biometric data to improve operator safety and
materials movement within facilities.
OPPORTUNITIES

 Improved health, safety, and environmental


(HSE) performance - using advanced
analytics to identify risky behaviors and
choices
 Better subsurface planning - well
placement, well design, and full-field
development planning
 Automation of the prospect-maturation
process
 Higher offshore operational performance
 Faster, more efficient, and lower-cost
supply
SOLUTIONS

Source: [Link]
EXAMPLE 1
A CENTRALIZED SURVEILLANCE CAPABILITY FOR DEEP WATER OIL AND GAS

 Combined offshore control and onshore


asset engineer collaboration rooms to
create a “digital trauma center”
 Improved surveillance quality and
reduced time spent on surveillance by
60%
 Predictive monitoring was built to
identify potential risks
 Resulted in a substantial reduction of
unscheduled deferment related to trips,
equipment performance, and corrective
maintenance.
EXAMPLE 2
DIGITIZATION OF MATERIALS MANAGEMENT

 A large IOC launched a multi-year


program to improve materials
management
 The key was monetizing the value by
addressing gaps in data/BOMs, orders
and workflows.
 E.g., create “BOM factories” and
rewire ERP to reduce “generic
orders”.
 An IoT connecting orders to
equipment to materials was the key
catalyst to taking an end to end
process view and scaling the solution.
EXAMPLE 3
PWC AND GE DIGITAL HELP COMPANIES INNOVATE AND DISRUPT

You might also like