Workshop on Future of Digitalization and the Industrial Internet of

Things Applications in the Oil and Gas Industry

BACKGROUND

Though oil and gas (O&G) companies were once acknowledged as one of the most
innovative businesses around, global analysis reveals the sector is one of the least
digitally mature and as a result, it is missing significant opportunities to optimize its
operations.1
A new burst of innovation is essential in the asset-intensive O&G sector in the wake
of prolonged plunge in the oil prices from more than $100 per barrel in 2014 to less
than $60 per barrel today. Thanks to the advances in ICT e.g. through digitalization
and the industrial internet of things (IIoT) applications, many fields that are unviable
in todays low price environment will receive a new lease of life. 2
Effective use of digital technologies in the O&G sector could reduce capital
expenditures by up to 20 percent; it could cut operating cost in the upstream by 3-5
percent and about half that in the downstream.3

SCOPE
Dramatic changes across the oil and gas industry require new approaches to managing
information, analyzing patterns, and optimizing outcomes in both downstream and upstream
operations. Effective adoption of digital technologies by O&G companies ensures optimal oil
and gas processes which results in improved efficiency and viability of oil and gas operations
(Fig.1).

1
MIT Sloan Management Review and Deloittes 2015
2
Digital Transformation Initiative: Oil and Gas Industry, The Digital Transformation Initiative (2016)
3
Connected barrels: Transforming oil and gas strategies with the Internet of Things, Andrew et al. (2015)

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 Figure 1: Role of digitalization in tackling the business challenges
in the oil & gas sector (Frost & Sullivan, 2013)

With the coming of age of the disruptive IIoT and other new digital technologies (e.g.
Robotics, drones, cloud services, Artificial
intelligence, Big data/ Analytics, and wearable
technology), it is imperative that the O&G
industry maximizes the advantage of using
digitalization to transform operations, boost
agility and strategic decision-making (Fig.2).

Due to the increasing degree of uncertainty in

todays dynamic and competitive business world,
O&G companies are operating under increasing
pressures to produce with minimal resources. As
such, digitalization proffers O&G companies the
platform to strengthen their competitive
positions in rapidly changing environments. The
importance of effective integration of digital
technologies in O&G operations are widespread.
Figure 2: Marching forward through digital asset life cycle management

For example, Upstream companies (e.g., exploration and production) focused on optimization
can gain new operational insights by analyzing diverse sets of physics, non-physics, and cross-
disciplinary data. Furthermore, the effective use of digital and related technologies may
provide possibilities for expanding proven crude oil reserves, improving the rate of crude-oil

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extraction from existing wells, and providing further means to discover new wells. Midstream
companies (e.g., transportation, such as pipelines and storage) eyeing higher network
integrity and new commercial opportunities will tend to find significant benefit by building a
data-enabled infrastructure. Downstream players (e.g., petroleum products refiners and
retailers) should see the most promising opportunities in revenue generation by expanding
their visibility into the hydrocarbon supply chain and targeting digital consumers through new
forms of connected marketing.

As such, understanding the significance of key innovative trends in digitalization (i.e. Network
and infrastructure, big data, Artificial Intelligence, Anytime Anywhere collaboration and M2M
communication) affect the O&G business chain is imperative for O&G companies looking to
find value in digitalization as shown in Fig. 3.

Figure 3: Innovative digital technology trends in the O&G industry

OBJECTIVES

This workshop aims to strengthen interactions and explore new paths for close collaboration,
develop scientific and technology transfer collaborations and innovation between the KFUPM
research community and professionals in the O&G companies and O&G technology
companies. The purpose of this interaction is to establish the necessary next steps for
unlocking the benefits of digitalization in the O&G sector.

The workshop objectives are:

To attract all stakeholders (e.g. researchers and professionals) interested in the

application of forecasting methods in well performance, reservoir characterization
and modelling.
Share an overview on the applicable research activities and their (potential)
relationship with regional and global digitalization of petroleum industry.
To serve as a forum for discussion of new and recent research and applications in this
niche.
While each organization has their own goals and priorities, many of the digitalization
challenges will be the same. This workshop offers a distinctive platform for knowledge

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 exchange and discussion, providing an opportunity for delegates to share their views
and discuss common challenges with their peers in an open forum.
Identify any potential gaps, overlaps and harmonization opportunities for
digitalization and its applications in petroleum industry.
Align digital services and technologies with the needs of the O&G industry.
Integrate the use of these IT/digital tools and techniques in the framework of an
appropriate development methodology to develop high quality protocols solutions.

AGENDA

The workshop will be comprise of industry keynotes, technical presentations and a forum for
open discussion.

Time Activity Speaker Title

07:45 08:00 Registration
08:00 08:10 Opening address
08:10 08:30 Presentation
08:30 09:00 Presentation
09:00 09:20 Presentation
09:20 09:40 Presentation
09:40 - 10.00 Presentation
10:00 10:30 Panel Session/Q&A
10:30 10:45 Networking break
10:45 11:05 Presentation
11:05- 11:20 Presentation
11:20 11:45 Presentation
11:45 12:50 Lunch break
12:50 13:10 Presentation
13:10 13:30 Presentation
13:30 13:50 Presentation
13:50 14:10 Presentation
14:10 14:40 Presentation
14:40 15:10 Panel session
15:10 15:30 Concluding Remarks