The digital future of oil and gas

Abstract

O&G industry faces a new reality

Currently, O&G companies are under intense pressure. Supply and demand dynamics triggered by increased unconventional production and slower global GDP, has led to significantly lower prices. Since 2014, price has fallen by around 70 percent and as a result, production profits are low and companies have been forced to reduce capital expenditures. Recent OPEC production cuts led to a slight recovery but mid-term forecast from most analysts is still 50% below 2014 prices. At the same time, global focus on environmental impact due to increasing CO2 emissions and global warming is forcing the industry to implement new technologies that operate more efficiently and reduce their carbon footprint.

These complex challenges in the O&G market require a new way of thinking and a new way of doing business in order to stay competitive. O&G companies need to focus on reducing capital and operating costs without compromising HSSE standards and reliability.

Digitalization has become an important competitive factor

In this challenging time, the O&G industry can drive productivity and create value by taking advantage of new technologies and the concept of Digital Oil and Gas. Today, there are already an expansive set of proven digital solutions available that are being applied in various industries all over the world. Digital solutions turn data into real-time knowledge for faster, smarter decision making, which ultimately means reduced lifecycle and projects costs, as well as improved operational efficiency and safety.

O&G companies are producing a large amount of data from their operations and process related activities. Digital life cycle software solutions, digital enabled integrated operational solutions, digital platforms, advanced data analytic solutions and data driven services so called Apps are helping customers harness their data to increase productivity, generate energy savings, optimize scheduling and increase plant security. This allows customers to comply with increasing HSSE requirements and improve the value of their capital expenditure.

How can Digital Oil and Gas be leveraged to the O&G industry?

Horizontal Industrial companies and OEMs are global pioneers in the field of industrial digitalization. They have set new standards with proven results across multiple industries. At the same time, they have decades of experience in the oil and gas industry. These ‘Digital’ OEMs understand the entire life cycle of O&G assets and have the necessary OEM equipment know-how. This know-how combined with their extensive analytics expertise, allows them to turn data into proven customer value every day.