Jessica Assunto | 3 months ago
Articles

The Digital Transformation and How It's Improving the Oil & Gas Industry


Digitalization: Improving the Industry

Technology companies have dramatically touched every industry unlocking value with innovations. This article will focus on how the Oil and Gas industry’s adaptation of digitalization has touched segments like data, customer experience, automation, and supply chain.

Data

Some of the most valuable assets to companies today are data and analytics. They are the key to driving efficiency across the value chain. A real-world industry example of digitalization impacting data is the use of digital twins. Industry leaders are building these applications to obtain meaningful insights from multiple data sources. They are transforming operations, boosting agility, and providing a more sustainable and cleaner environment.

According to The Journal of Petroleum Technology: “Total, Aker, BP, Shell, and Equinor have developed and deployed digital twins. BP uses its APEX simulation and surveillance system to create virtual copies of all its production systems. By pairing the model with the actual data, irregularities can be detected hourly, and the impact of procedures can be simulated to show engineers how they can tweak flow rates, pressures, and other parameters to safely optimize production. Piloted in the North Sea, APEX is now being rolled out around the world. The company says the system helped add 30,000 barrels of production last year. In one instance in Trinidad and Tobago, the company had to shut in a pipeline for maintenance at its onshore facility. By simulating the procedure and showing engineers how to reroute the flows and at what speeds, BP says it was able to protect a large volume of production that previously would have been lost during the 3 days required to complete the maintenance.”

Improving the Customer Experience

Research reported by Deloitte shows that digital technology is transforming company-customer interactions in the business-to-business (B2B) market. Well over half of B2B buyers surveyed prefer to conduct research online, prefer not to interact with a sales rep as their primary source of information, and say they can develop a vendor shortlist based solely on digital content.

With a new generation of tech-savvy consumers seeking simple, effortless, technology-enabled solutions, oil and gas is responding with engagement models offering cost savings, flexibility, and a more personalized experience. Customers find themselves more empowered with an increase in digital technologies.

Deep analytics can predict the behaviors of customers by identifying usage patterns. Expect to see data analyzing tools become a more common practice as more oil and gas companies take steps to capture and learn from smart data. Companies will differentiate themselves by improving customer satisfaction and experience with digital adaptation, allowing more revenue opportunities and services.

Automation

The working conditions imposed by the worldwide pandemic have demonstrated the advantages of digitalization across many industries. Processes have been automated to make it possible to work remotely. This has had significant impacts including:
  • Minimized the cost of sending employees to wells and offshore facilities to perform simple diagnostics by managing functions virtually.
  • Reduced the risk of downtime by handling maintenance, troubleshooting, and repair issues quickly, without having to send engineers on site.
  • Reduced the number of staff on-site and have removed the need for hazards in potentially dangerous situations.
The Journal of Petroleum Technology highlighted “Since August 2019, Chevron has leveraged edge computing and data analytics to directionally drill more than 3 million ft remotely in its Mid-Continent business unit and is now using remote drilling for 100% of its directional drilling in the unit. The company is also using predictive analytics with either artificial intelligence (AI)-based algorithms or first-principle engineering models to monitor its wells in remote locations and to know earlier and respond faster if they start to lose production.”
While skilled labor and human reasoning cannot be removed from the equation, benefits from technological advances have reduced injury and lowered liability for companies.

Supply Chain

The pandemic has presented more of a need for companies to reshape the supply chain and outsource materials. Oil and gas companies have learned to seize every opportunity to reduce costs and increase efficiencies while providing maximum service(s) at the lowest cost. Combining equipment, software, and technology can unlock significant value.

Technology has allowed buyers and suppliers to respond more quickly and efficiently with platforms such as Pipesearch. With data-driven analytics and access to a global market inventory, PipeSearch is helping operators respond to changing requirements and project timelines by ensuring high-quality cra tubular products are available when needed.

Tubes and tubular goods are among the most important products supplied to the oil and gas industry. Delays or lack of materials can result in high operating costs. Having this reliable material resource available online also enables purchases to be made closer to the need date, and reduces the costs and risks of project delays.

PipeSearch: Identify, Optimize, Deliver

Pipesearch helps operators identify opportunities for cost savings that can be leveraged across future projects and operations. We can identify, and compare opportunities to optimize supplies and efficiency and expedite transactions. This results in faster, more flexible, and more efficient processes. It is the right application with the right technology that can take a company's performance to an entirely new level. Remember, innovation brings improved efficiency, which results in more profit. We are a tool that will drive value creation.

Accelerate ahead of the competition with PipeSearch. We’re adding another key tool for businesses by connecting critical projects with the materials that are vital to their operations. Please click here to view our full product guide.




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