Thursday 21 September 2017

Oil and gas competitiveness hinges on the latest Information Technology systems

The competiveness of the oil and gas industry could hinge on the latest information technology systems. People hear so many things today, such as automation, machine learning, and the internet of things. Sometimes it’s annoying because it’s not always clear what they mean to the oil and gas environment. Most of the industry already has implemented foundational IT solutions and IT programs. There is a new breed of technologies, which have shown up for more than two to four years.

STRUCTURAL SHIFT IN THE INDUSTRY

The oil gas industry, in the last three years has pushed hard on the three levers of reducing cost, reduced staff, enhanced supply chain efficiencies as well as improved processes. To have a deeper process layer, enhancements would need a more sophisticated technology app in, for instance asset maintenance. Already, the industry has a deep comprehension of maintenance, but most approaches are rooted in some kind of usage or time-based measure. The more empirical maintenance approach could potentially engage the equipment manufacturer to help customers make sense of the data that the sensors collect and the assessment of equipment condition more accurate. In time, the understanding of a producer of the operating parameters of the equipment will improve, and maintenance departments will incorporate that learning to more lower-cost, efficient turnaround schedules.

Oil and gas industry

THE FOUR KEY INFORMATION TECHNOLOGY SYSTEMS TRENDS THAT TRANSFORM THE OIL AND GAS INDUSTRY

1. Out with the old models and in with smarter financial models. The global IT spending in the industry would be worth $48.5 billion by the year 2020, with a major growth driver as the improved resources efficiency. Information and operational technology are starting to converge as new enabling technologies like the IoT have become more affordable and provide new ways to work smarter for less. The enhanced affordability enables not only big tier one organizations, but smaller ones transform the EAM or the enterprise asset management systems and boost uptime.

2. Extracting the most of existing resources. The companies that could move on new projects would continue to do so with a lesser headcount. Nevertheless, without the right resources, organizations run the risk of being unable to accomplish vital projects. Also, there’s a lack of younger engineers that come through to bridge the tap, who adapt easily to new technology.

3. Aging assets at a crossroads of being scrapped or maintained. The market’s unpredictability meant that the oil and gas field has reduced expenses on big-scale modification and maintenance of assets. However, it has not stopped operating. The longer that a firm delays maintenance of asset, the more hazardous it could become from an environmental, safety and operational viewpoint. Oil and gas companies struggle to catch up the backlogs. Effective used of reduced headcounts as well as contingent labor means possessing the right tools for planning and executing complex projects, workforce management and would be important to keep the costs and time of the organization efficient. Agile information technology systems means faster implementation and so quicker time to value the big-budget projects.

4. Fitter and leaner industry. The oil and gas companies, with leaner information technology and use of emerging technologies mean that they are well places to quickly adapt to new business methods and strategies to support the growing market.

CLOUD-BASED INFRASTRUCTURE

One way to boost effectiveness in the oil and gas market is to move the infrastructure to the cloud. Cloud-based infrastructure could hasten value realization and provide faster to deploy and more agile solutions. The entry cost is low and companies that survive and prosper are those that know how to leverage the enabling technologies such as mobility and cloud, to help optimize and automate processes as well as apply analytics to boost the operations output.

TECHNOLOGICAL ADVANCEMENTS IN OIL AND GAS

In response to the recent advancements in technology, oil executives have to take into consideration digital technologies that have the potential of transforming operations as well as build more profits from existing capacity. The effective use of digital technologies in the sector can lower capital expenses of up to twenty percent. It could cut the costs of operations up to three to five percent and around half of that in downstream.

The oil and gas enterprises were pioneers of the first digital age back in the 80’s and 90’s. Long before words like advanced analytics, big data and the IoT became popular, the executives in the field were using 3-D seismic, linear program modeling of advanced process control and refineries for operations. Utilization of such technologies unveiled new hydrocarbon sources and delivered operational efficiencies throughout the value chain.

Prices of oil seldom have stayed constant and while they’re stable at present, they could continue to decrease for the near future. For the industry to stay relevant, it has to make money for its stakeholders. To do that, it has to employ all tricks it has on up it sleeves, and the most powerful among them is the employment of technology.

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