Currently all eyes on Crude Oil prices. The downturn has been relentless and traders are now trying to figure out where the bottom will be. Data-driven optimization has now become a top strategic priority for Oil & Gas CIO.

Now with the current market crude is at $43 per barrel. How we can help Oil and Gas companies to take advantage of the technology.

CIO are proactively investing in cutting cost, accessing the data across the systems/organization and leveraging the digital technologies.

 

Current Scenario

Steps to be taken by CIO

Future Growth Areas

Reduction in Oil Price

Declining oil prices are pressuring CIOs to reduce IT budgets

•    Balance tactical cash-flow requirements with strategic IT investments that will improve competitiveness.

•  Analytics and Digital technologies will help the upstream companies to reduce its overall cost and survive in the long term

Investment  in Advanced Analytics

Advanced analytics are driving business efficiencies, making it critical for CIOs to protect ongoing investments

•    Intensify IT spending on analytics that will improve cash flow.

•     Refocus IT resources to integrate information from IT, OT and UM systems.

•  Advanced analytics helps  to reduce operating costs and increase production rates faster than competitors

•  It is an essential survival skill for upstream companies

Investment in Digital Technologies

Business optimization has become a key survival issue, allowing forward-thinking CIOs to lead further investments in digital technologies

•    Drive end-to-end business efficiency by enabling integrated planning across organizational silos.

•    Accelerate POCs focused on the use of digital technologies to boost engineering and field worker productivity

•  Digital completion technologies (such as micro seismic) are increasing the ultimate recovery rates of unconventional reservoirs from 3% to 5% to 12% or 16%, vastly improving the competitiveness of these assets

These are the top 6 Emerging Technologies in Oil & Gas Industry: Organizations are investing in these area, we can help Oil and Gas companies in these IT areas.

  • New analytic methods are also having significant impact in the performance of subsurface activities
  • The capacity of analytics helps  to discover new insight depends directly on the information available for analysis
  • Higher-level analytics will be most impactful when it is applied to information from across multiple organizational siloes

  • Advanced sensor technologies such as down-hole fiber are providing a flood of high-resolution reservoir data for conventional assets, enabling more accurate modeling, simulation and decision making
  • Sophisticated  management of reservoirs  using sensors will help the management to improves decline curves and increases production rates

  • Mobility, infrastructure and collaboration technologies currently represent the biggest investment areas across the oil and gas industry
  • The key reason companies are investing in digital technologies is to improve operational efficiency

  • CIOs must continue to invest in POC experiments to look for effective ways to improve communications, collaboration and automation
  • It will also help to create a more aware, connected and agile workforce

  • The Internet of Things (IoT) will touch nearly every area of O&G operations and customer engagement
  • Many leading O&G companies are already investing billions in IoT – and realizing returns in increased asset uptime, efficient predictive maintenance, reduced cost of compliance

  • Companies are investing in  applications which include deploying robots to inspect difficult-to-access elements such as offshore risers, and piloting unmanned aerial systems  or drones into areas that are challenging for human intervention

Conclusions:

  1. Determining IT separation requirements will be one of the key challenges for Cash strapped E&P companies that continues to divest non-core assets

  2. Low petroleum prices spur energy companies to find innovative ways to get more petroleum for less money

  3. Digitization in the oil industry has been going on for more than a decade but industry CIOs say that the slump has accelerated the process.