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.
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Current Scenario |
Steps to be taken by CIO |
Future Growth Areas |
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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 |
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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 |
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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:
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Determining IT separation requirements will be one of the key challenges for Cash strapped E&P companies that continues to divest non-core assets
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Low petroleum prices spur energy companies to find innovative ways to get more petroleum for less money
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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.