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: https://www.pwc.com/us/en/energy-mining/publications/assets/pwc-unrealized-potential-of-digital.pdf
 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