Over the past two years, spurred by resurgent oil prices, digital pilots have flourished across the value chain, promising an exciting future. Fremont, CA: The oil and gas industry is seeking ways to use technology to increase efficiency and improve results across the board, from operations and production to sales and marketing.When it comes to marketing and sales, becoming paperless and focusing more on digital documents, websites, and adverts is frequently considered . With Industry 4.0 sweeping the current digital ecosystem, the fresh set of digital modeling and simulation tools is the latest scoop on transforming upstream project May 3, 2021. It both enables and is fueled by digital transformation—it allows Summary: The oil and gas industry is being shaped by numerous risk factors, including supply and demand imbalance, rise of sustainable resources, higher operating costs and increased pressure from investors. DIGITAL TRANSFORMATION AND THE OIL AND GAS INDUSTRY KNUT MØYSTAD, INDUSTRY DIRECTOR FOR OIL AND GAS, IFS Digital transformation in the oil and gas industry is already a fact of life. The oil, gas, and chemical sectors face daunting global challenges. transformation . Simply speaking, companies will . Safety 3X fewer recordables Process and process incidents Incidents 4 th Quartiles 1 st Recordables 4% higher availability Half exploited to drive transformation in oil and gas. They have the potential to redefine the oil and gas industry. predictive analytics is seen as the priority capability for digital solutions in this sector 61% of oil and gas professionals consider the cloud to be 'important' to their transformation plans 50% of these professionals see analytical capability, combining both content and structured data, as business critical it is almost impossible not to … In the past, Oil and Gas (O&G) companies have attempted to address oil- and horizontal drilling of oil shale) • Heightened geopolitical risk • The prospect of increased supply from Iran • Diminishing storage space for crude These market conditions and others suggest that the days of $100-per-barrel oil may not return for years, if at all. Oil & Gas and Electric Power Practices Digital transformation in energy: Achieving escape velocity The need for digital value is greater and the barriers to change are lower—yet inertia persists. Let's take a deep dive into the O&G value chain to understand the ideal components of the digital spine. The digital transformation in upstream oil and gas. facing oil and gas companies today. The book is both interesting for those familiar with oil and gas, and easy to understand for those who are not. The truth reaping multiple benefits as a result.' is that the focus for digital transformation is such a wide target - from the needs of the digital oil fields, those of head office, the need for predictive maintenance, sub-sea One thing alone is unlikely to restructure the industry in robotics, and so on. What is oil and gas digital transformation? The oil and gas sector is no exception. Adlib's Document Transformation Platform for Oil, Gas and Energy, helps energy leaders get the most of their internal and external assets, tapping into locked-away data and documents to accelerate workflows, drive analytics, increase productivity and simplify compliance. Commodity prices remain low and are not expected to dramatically increase The industry is facing disruption from multiple sources -regulation, alternative energy, global demographics and more Oil and gas organizations must sustainably reduce cost structures The industry has already extracted as . Oil and gas companies had faced formidable challenges to their efficiency, sustainability and profitability . Particularly key to the oil and gas sector has been the development of IoT. In that regard, the report explores the digital transformation trends in the oil and gas industry, its potential and key investment opportunities. The Components of a Digital Spine for Oil & Gas The O&G industry is relatively less matured as compared to other industries when it comes to the adoption of emerging technologies. The top 5 digital technologies currently in use within oil and gas companies are remote monitoring, used by 93% of firms, mobile platforms and apps with 92%, cloud computing - 90%, operational technology - 89%, and advanced analytics currently used by 85% of companies. Digital transformation also requires a culture and mindset that supports coping with new challenges. Is the forecasted cumulative value to the industry between the years 2016-2025 Of the oil and gas companies are digital evaluators, followers or laggards in the trends that are influencing oil and gas data management practices within the context of the Digital Transformation that is underway. Digital oil field is mostly about technology 2. Important: Although we focus on digital transformation, some industrial organizations use the As competition becomes tougher, midstream businesses must improve data management and integrate digital technologies within their operations. So much so that NASA has been working . In other words, companies need their people to buy-in and embrace the new way of doing things. 1). A. Real-time visualization: The ability to visualize . Schlumberger although off to a great start is yet far from reaching the pinnacle. technologies. Industries are embracing technology to reshape their operating landscape and reap the benefits of improved productivity, higher efficiency, and increased cost savings. y Learn how digital transformation empowers oil and gas companies to deliver increased value across asset and operations lifecycles. The highest use of cloud services was in respondents who viewed their digital business transformation as being on . pstream oil-and-gas players of all sizes find themselves at a critical juncture in the transformation that is taking place in the industry: Increasingly, Upstream companies require greater capital efficiency in order to compete, an objective that digitalization can support by driving operational improvements. Three practical lessons can help energy companies break through. Some of the main benefits of digital transformation in the oil and gas industry are: 1. • Digital transformation in the Oil and Gas industry could unlock approximately $1 trillion of value for oil and gas firms, with another $640 billion for its customers and wider society. 1). Case Study: Digital Well Pad PoC Complete and integrated view of all relevant information from the well pad to enable optimized production management • Co-innovation PoC with major operator • Digital Transformation of 2 Well Pads located at Bakken and Eagle Ford Assets • Targets: Increase Well Pad Regularity by 50%, In the present climate, the quest is not only for volume, but rather for value. Comparatively, outside the tech industry, the US lags somewhat behind. Across today's oil, gas, and chemical landscape, supply is abundant and prices are low. y Learn how digital transformation empowers oil and gas companies to deliver increased value across asset and operations lifecycles. Description. Key words: COVID-19, Digital Transformation, Oil and Gas, Electronics Processes, Business Continuity. downloads/20140004423.pdf By its very nature, the Oil & Gas sector has been at the forefront of the technological curve at many points in time. The visibility and clarity delivered by digital technologies and advanced analytics can give executives unprecedented, granular views into operations, increase agility, and . For the effective development of the mineral resource base and the implementation of planned projects, it is necessary to update technological solutions in order to optimize business processes along the entire value chain of the product. The truth reaping multiple benefits as a result.' is that the focus for digital transformation is such a wide target - from the needs of the digital oil fields, those of head office, the need for predictive maintenance, sub-sea One thing alone is unlikely to restructure the industry in robotics, and so on. Currently, digital transformation has become one of the global technological trends. Oil & Gas and Electric Power Practices Digital transformation in energy: Achieving escape velocity The need for digital value is greater and the barriers to change are lower—yet inertia persists. Implementing LoRaWAN® and IoT-driven predictive maintenance solutions provides oil and gas companies with tangible benefits, including: - Improved asset reliability - Improved operational efficiency - Significant maintenance cost savings (30%) - Reduced equipment downtime (45%) - Reduced environmental impact - Improved safety The decrease in demand led to fears of oversupply for fuel and oil products, and a subsequent fall in costs. Guided Digital Initiative Assessment in Oil & Gas Sector The global oil & gas industry is witnessing extensive transformation like never before - a transition towards a less carbon portfolio, the ever-expanding core value-chain, and the proliferation of digitization in almost every business sector. These are just our predictions, and we would love to hear from you if you have your own, but we can reasonably assume the following three key areas of . This topic is especially relevant for the national oil and gas complex. In our digitalisation survey, 79pc of respondents revealed that they used cloud-based services in their current operations (see Fig. You need to identify and assess the value of your data and build necessary IT platforms. . Today, digital is a key enabler in the oil and gas industry to reduce costs, make faster and better decisions, and increase workforce productivity. The future of digital transformation and oil and gas. For Schlumberger to truly qualify as a pioneer in leading digital transformation in the Oil and Gas Industry, it will first need to attain the homogeneity in processes and controls across the acquired companies and respective domains/segments. Develop agile business models with higher margins, improve . This research resulted in a position paper, ZDigital Journey, laying out the findings and providing the groundwork for the data management vision for his company, EnergyIQ. The international consulting and software company with . the concept of the digital oil field is defined by andre (2016) as "having the right tools and technology to maximize the profitability of the field, and make it as secure and environmentally responsible as possible in a mostly automated way. Andy Brogan, EY Global Oil & Gas Leader. By: Lyat Avidor Peleg. Digital Transformation of Oil and Gas Companies: Energy Transition Abstract — The authors raise the issues of digitalization in the leading companies of oil and gas industry in terms of the energy transition. Geoffrey Cann and Rachael Goydan's Bits, Bytes, and Barrels: the Digital Transformation of Oil and Gas is a handbook of how to develop digital strategy and culture and get IT and operations engaged. Three practical lessons can help energy companies break through. Digital oil field is mostly about automation 4. But the digital transformation is about more than technology. Both countries are pushing forward with the Digital Transformation agenda, and realizing the benefits. Our value-at-stake analysis aims to assess the potential for digitalization in the Oil and Gas sector to unlock benefits for the industry, its customers and society more generally over the next decade (2016-2025). Description. Digital Transformation of Oil & Gas Pipeline Operations Digital Transformation of Oil & Gas Pipeline Operations Beyond Compliance: Optimizing Safety, Reliability and Efficiency The early pipeline pioneers could not have imagined the complexity operators face today. Digital Technologies The oil and gas industry has been using digital technologies since 1960s, especially in the upstream sector, with the aim to better understanding the geology of the oilfields, increasing production and safety. Get a Sample PDF of the report at . Let's take a deep dive into the O&G value chain to understand the ideal components of the digital spine. Major Capital Projects are greenfield opportunities Five Truths 1. Public Full-text 1 Digital Transformation of Oil and Gas Companies: Energy Transition Abstract — The authors raise the issues of digitalization in the leading companies of oil and gas in dustry in. Putting a value on digital transformation. Digitizing the Maintenance Documentation; a System of Systems in Oil and Gas Industry. Oil and gas producers are challenged with addressing long-term business needs such as: improving health, safety, and environment; extending life of production equipment; increasing reliability to reduce maintenance cost; reducing losses; improving operability to reduce personnel cost; improving productivity; increasing production; and improving governance and regulatory compliance. Digital technologies in oil and gas companies can have a significant business impact as it contributes to increasing hydrocarbon recovery, ensuring safety across the business ecosystem, and improving operational reliability. In addition, the paper also proposes policy recommendations for the low-carbon transition of oil and gas companies. This research is based on semi-structured interviews with stakeholders working with documentation, aftermarket services and engineering of subsea solutions, and proposes a model for digital generation of required documentation. It has fallen essentially in a brief timeframe, taking billions off the stock costs of major Oil and Gas companies. Digital transformation practices can effectively close the gap between Top Quartile performance and average operating practices, which is estimated to account for more than $1 trillion of lost productivity. regulatory compliance, streamline Unlocking new business opportunities- Digital technologies help businesses look beyond the geographical, product/service-based and operational confines of their business models to new opportunities and offerings driven by data and collaboration. Australia. Moving from an internal process-based, siloed view to an integrated, intercompany view is key. The advent of digital transformation has both immediate and long-term implications for oil and gas companies. The Components of a Digital Spine for Oil & Gas The O&G industry is relatively less matured as compared to other industries when it comes to the adoption of emerging technologies. A. Real-time visualization: The ability to visualize . It is also a cultural change, about people and agile ways of working. This paper addresses the oil and gas industry's trends in digital transformation and the initiatives at Bien Dong POC. Resources: [1] Why . There are four emerging technologies in particular that have the potential to greatly improve oil and gas operations (Figure 4) that are new and worth further exploration. Cite this Article: Burkan Hawash, Yousef I Abuzawayda, Umi A Mokhtar, Zawiyah M Yusof and Muaadh Mukred, Digital Transformation in the Oil and Gas Sector during Covid-19 Pandemic, International Journal of Management, 11(12), 2020, pp 717-724. The global And that's the #1 key to successful digital transformation in oil and gas: having the skills to harness technology's full potential. Digital technologies offer significant opportunities to boost efficiency and productivity, and decision-makers can develop strategies to guide innovation and change. Introduction. y Develop your strategy for implementing digital transformation. Digital transformation and industry 4.0 have been on the map for a number of years, but COVID-19 accelerated the trend by around 7 years in just a few months, according to McKinsey, as companies scrambled to respond to the need for remote working, increased . Develop agile business models with higher margins, improve . Digital technologies in oil and gas companies can have a significant business impact as it contributes to increasing hydrocarbon recovery, ensuring safety across the business ecosystem, and. For the vast majority of oil and gas companies, however, it remains difficult to translate digital efficiency into better financial performance Get a Sample PDF of the report at . This white paper examines the value that Industry 4.0 brings to the oil and gas upstream industry. survey of 59 oil and gas executives. 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