Digital transformation of the oil, gas and energy value chain

2018 ◽  
Vol 58 (2) ◽  
pp. 488 ◽  
Author(s):  
Paul Taliangis
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Oil And Gas ◽  
Predictive Analytics ◽  
Data Access ◽  
Oil And Gas Industry ◽  
Digital Transformation ◽  
Time Data ◽  
Energy Value ◽  
Oil Gas

This paper looks back at 2014–2017 as a period of extraordinary transition of the international and Australian oil and gas industry, with mounting evidence that the industry and broader energy value chain is entering an era of unprecedented digital transformation. This process is expected to accelerate through 2018–2025, with profound implications for industry stakeholders. The key question is: are organisations and the industry more broadly doing enough, well enough, fast enough? Emerging from the lows of a pronounced industry recession, and subsequent and ongoing consolidation, there is now growing, broad-based acceptance that the industry needs to engage new business models that leverage modern digital technology to reform productivity and broader industry performance. However, the harsh reality is that other industries are delivering superior results, faster, which is driving a need for an elevated and sustainable strategic response. This paper seeks to illustrate the digital links that must be established along the full value chain between data access and management, predictive analytics, visualisation, team collaboration and communication technology. The digital links are enabled by internet connectivity and cloud-based infrastructure, which presents an opportunity for organisations of all sizes to realise benefits along the complete chain. This paper is structured in four parts: • The strategic context – what is driving the need to engage in digital transformation? • The digital transformation value proposition – what value can be achieved? • Case studies – what are examples of digital transformation? • Key learnings – what should we note from thousands of global digital initiatives underway along the energy oil, gas and energy value chain? The main takeaways from this study are: • There is an unprecedented opportunity to transform the oil and gas value chain to deliver new growth and improved productivity, linking real-time data, predictive analytics, interactive visualisation and collaboration. • Digital transformation is affordable, readily implemented and scalable to meet current and changing future needs. • There are many powerful examples of material value add across exploration, development, operations and business management. • Many organisations and the industry as a whole is lagging others – the industry is not doing enough, well enough, fast enough. • The time to act/accelerate is now. • Digital transformation is not about technology alone. Keys to success include vision, leadership, culture and data quality.

Technology Focus: Digital Data Acquisition (January 2021)

2021 ◽  
Vol 73 (01) ◽  
pp. 64-64
Author(s):  
Pallav Sarma
Keyword(s):  
Data Acquisition ◽  
Real Time ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Digital Transformation ◽  
Edge Computing ◽  
Digital Data ◽  
Time Data ◽  
Data Accessibility ◽  
Digital Data Acquisition

COVID-19 has significantly accelerated the adoption of digital technologies across all industries, and the oil and gas industry has been no exception. Consequently, interest in digital data acquisition, the backbone of all digital transformation work flows, also has increased significantly. This can clearly be seen in the multifold increase in the number of SPE papers on this topic since last year. This feature will continue to focus on technologies to improve data accessibility and data acquisition, as well as entirely new data sources and their applications. The papers chosen this year include real-time remote monitoring of steam traps and corrosion using wireless sensors, enabling faster and easier access to relevant subsurface information through deep learning of unstructured documents, and automation of real-time drilling work flows through digital transformation technologies. While not reflected in these papers, a related emerging technology that has the potential to transform the data acquisition paradigm and that is garnering much attention, however, is edge computing. As the saying goes, if you cannot bring the data to the model, take the model to the data. One of the main difficulties in faster adoption of digital transformation in oil and gas has been access to reliable real-time data that can be converted to real-time decisions. This is the case because of the remote and geographically distributed nature of most oil and gas assets and legacy outdated and piecemeal information-technology (IT) infrastructures, making it difficult to provide models with reliable, standardized data in a timely manner. Edge-computing frameworks eliminate scale and capacity constraints and bypass limitations of current IT infrastructures, truly enabling operationalization of models for real-time decision making. Edge computing, together with machine learning and artificial intelligence, will be the real enablers of digital transformation.

scholarly journals Human Centric Digital Transformation and Operator 4.0 for the Oil and Gas Industry

IEEE Access ◽  
2021 ◽  
pp. 1-1
Author(s):  
Thumeera R. Wanasinghe ◽  
Trung Trinh ◽  
Trung Nguyen ◽  
Raymond G. Gosine ◽  
Lesley Anne James ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Digital Transformation ◽  
Gas Industry

How Digital Transformation Improves Perceptions of Oil and Gas Industry

2020 ◽  
Vol 72 (12) ◽  
pp. 33-33
Author(s):  
Chris Carpenter
Keyword(s):  
Digital Technology ◽  
Public Perception ◽  
Business Models ◽  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Production Optimization ◽  
Petroleum Engineering ◽  
Co2 Injection ◽  
The Impact

The final afternoon of the 2020 ATCE saw a wide-ranging virtual special session that covered an important but often overlooked facet of the unfolding digitalization revolution. While the rising wave of digital technology usually has been associated with production optimization and cost savings, panelists emphasized that it can also positively influence the global perception of the industry and enhance the lives of its employees. Chaired by Weatherford’s Dimitrios Pirovolou and moderated by John Clegg, J.M. Clegg Ltd., the session, “The Impact of Digital Technologies on Upstream Operations To Improve Stakeholder Perception, Business Models, and Work-Life Balance,” highlighted expertise taken from professionals across the industry. Panelists included petroleum engineering professor Linda Battalora and graduate research assistant Kirt McKenna, both from the Colorado School of Mines; former SPE President Darcy Spady of Carbon Connect International; and Dirk McDermott of Altira Group, an industry-centered venture-capital company. Battalora described the complex ways in which digital technology and the goal of sustainability might interact, highlighting recent SPE and other industry initiatives such as the GAIA Sustainability Program and reviewing the United Nations Sustainable Development Goals (SDGs). McKenna, representing the perspective of the Millennial generation, described the importance of “agile development,” in which the industry uses new techniques not only to improve production but also to manage its employees in a way that heightens engagement while reducing greenhouse-gas emissions. Addressing the fact that greater commitment will be required to remove the “tougher two-thirds” of the world’s hydrocarbons that remain unexploited, Spady explained that digital sophistication will allow heightened productivity for professionals without a sacrifice in quality of life. Finally, McDermott stressed the importance of acknowledging that the industry often has not rewarded shareholders adequately, but pointed to growing digital components of oil and gas portfolios as an encouraging sign. After the initial presentations, Clegg moderated a discussion of questions sourced from the virtual audience. While the questions spanned a range of concerns, three central themes included the pursuit of sustainability, with an emphasis on carbon capture; the shape that future work environments might take; and how digital technologies power industry innovation and thus affect public perception. In addressing the first of these, Battalora identified major projects involving society-wide stakeholder involvement in pursuit of a regenerative “circular economy” model, such as Scotland’s Zero Waste Plan, while McKenna cited the positives of CO2-injection approaches, which he said would involve “partnering with the world” to achieve both economic and sustainability goals. While recognizing the importance of the UN SDGs in providing a global template for sustainability, McDermott said that the industry must address the fact that many investors fear rigid guidelines, which to them can represent limitations for growth or worse.

Technology Focus: Decarbonization (July 2021)

2021 ◽  
Vol 73 (07) ◽  
pp. 64-64
Author(s):  
Nigel Jenvey
Keyword(s):  
Business Models ◽  
Oil And Gas ◽  
Natural Capital ◽  
Ghg Emissions ◽  
Oil And Gas Industry ◽  
Policy Support ◽  
Continuous Change ◽  
Gas Industry ◽  
The Past ◽  
Technology Focus

Have you noticed the change in the oil and gas industry over the past year with its engagement in carbon management, decarbonization, and net-zero-emissions targets? Policy support and technology advances in alternative energies have delivered massive cost reduction in renewables more quickly, and to a greater degree, than expected. Over the past few years, more of the world’s capital has been spent on electricity than oil and gas sup-ply, and more than half of all new energy-generation capacity is now renewable. Some elements of society, therefore, have suggested that this is the beginning of the end for the fossil-fuel sector and call for investors to turn away from oil and gas and “leave it in the ground.” In more than a century of almost continuous change, however, the oil and gas industry has a long track record of innovative thinking, creative solutions, and different business models. SPE papers and events that covered decarbonization during the past year show that a wide variety of solutions already exist that avoid, reduce, replace, offset, or sequester greenhouse gas (GHG) emissions. It is clear, therefore, that decarbonization technologies will now be as important as 4D seismic, horizontal wells, and hydraulic fracturing. That is why we now bring you this inaugural Technology Focus feature dedicated to decarbonization. The experience and capability of the entire JPT community in decarbonization is critical. Please enjoy the following summary of three selected papers on the role of natural gas in fuel-switching; carbon capture, use, and storage (CCUS); and hydrogen technologies that deliver the dual challenge of providing more energy with less GHG emission. There are many ways to engage in the SPE decarbonization efforts in the remainder of 2021. Regional events have addressed CCUS, hydrogen, geothermal, and methane. There is also the new SPE Gaia sustainability program to enable and empower all members who wish to engage in the alignment of the future of energy with sustainable development. The Gaia program has an on-demand library of materials, including an existing series on methane, and upcoming similar events on other energy transition, natural capital and regeneration, and social responsibility priorities. Get involved through your SPE section or chapter or contact your regional Gaia liaison to find out what Gaia programming you can support or lead at www.spe.org/en/gaia.

Digital Deployment Lessons From Early Adopters

2021 ◽  
Vol 73 (05) ◽  
pp. 52-53
Author(s):  
Judy Feder
Keyword(s):  
Data Privacy ◽  
Business Models ◽  
Oil And Gas ◽  
Local Level ◽  
Digital Transformation ◽  
Automotive Manufacturing ◽  
Early Adopters ◽  
Offshore Technology ◽  
Offshore Oil And Gas ◽  
Offshore Oil

This article, written by JPT Technology Editor Judy Feder, contains highlights of paper OTC 30794, “Digitalization Deployed: Lessons Learned From Early Adopters,” by John Nixon, Siemens, prepared for the 2020 Offshore Technology Conference, originally scheduled to be held in Houston, 4–7 May. The paper has not been peer reviewed. Copyright 2020 Offshore Technology Conference. Reproduced by permission. With full-scale digital transformation of oil and gas an inevitability, the industry can benefit by examining the strategies of industries such as automotive, manufacturing, marine, and aerospace that have been early adopters. This paper discusses how digital technologies are being applied in other verticals and how they can be leveraged to optimize life-cycle performance, drive down costs, and decouple market volatility from profitability for offshore oil and gas facilities. Barriers to Digital Adoption Despite the recent dramatic growth in use of digital tools to harness the power of data, the industry as a whole has remained conservative in its pace of digital adoption. Most organizations continue to leverage technology in disaggregated fashion. This has resulted in an operating environment in which companies can capture incremental inefficiencies and cost savings on a local level but have been largely unable to cause any discernible effect on operating or business models. Although the recent market downturn constrained capital budgets significantly, an ingrained risk-averse culture is also to blame. Other often-cited reasons for the industry’s reluctance to digitally transform include cost of downtime, cyber-security and data privacy, and limited human capital. A single offshore oil and gas facility failure or plant trip can result in millions of dollars in production losses. Therefore, any solution that has the potential to affect a process or its safety negatively must be proved before being implemented. Throughout its history, the industry has taken a conservative approach when adopting new technologies, even those designed to prevent unplanned downtime. Although many current technologies promise increases of 1 to 2% in production efficiency, these gains become insignificant in the offshore industry if risk exists that deployment of the technology could in any way disrupt operations. Cybersecurity and data privacy are perhaps the most-significant concerns related to adoption of digital solutions by the industry, and they are well-founded. Much of today’s offshore infrastructure was not designed with connectivity or the Internet of Things in mind. Digital capabilities have simply been bolted on. In a recent survey of oil and gas executives, more than 60% of respondents said their organization’s industrial control systems’ protection and security were inadequate, and over two-thirds said they had experienced at least one cybersecurity attack in the previous year. Given this reality, it is no surprise that offshore operators have been reluctant to connect their critical assets. They are also cautious about sharing performance data with vendors and suppliers. This lack of collaboration and connectivity has inevitably slowed the pace of digital transformation, the extent to which it can be leveraged, and the value it can generate.

Photoacoustic Nanotracers for Subsurface Applications: Opportunities and Challenges

2021 ◽  
Author(s):  
Jesus Manuel Felix Servin ◽  
Hala A. Al-Sadeg ◽  
Amr Abdel-Fattah
Keyword(s):  
Acoustic Waves ◽  
Oil And Gas ◽  
Continuous Wave ◽  
Tracer Tests ◽  
Oil And Gas Industry ◽  
Oil Reservoirs ◽  
Medical Community ◽  
Sound Waves ◽  
Time Data ◽  
Gas Industry

Abstract Tracers are practical tools to gather information about the subsurface fluid flow in hydrocarbon reservoirs. Typical interwell tracer tests involve injecting and producing tracers from multiple wells to evaluate important parameters such as connectivity, flow paths, fluid-fluid and fluid-rock interactions, and reservoir heterogeneity, among others. The upcoming of nanotechnology enables the development of novel nanoparticle-based tracers to overcome many of the challenges faced by conventional tracers. Among the advantages of nanoparticle-based tracers is the capability to functionalize their surface to yield stability and transportability through the subsurface. In addition, nanoparticles can be engineered to respond to a wide variety of stimuli, including light. The photoacoustic effect is the formation of sound waves following light absorption in a material sample. The medical community has successfully employed photoacoustic nanotracers as contrast agents for photoacoustic tomography imaging. We propose that properly engineered photoacoustic nanoparticles can be used as tracers in oil reservoirs. Our analysis begins by investigating the parameters controlling the conversion of light to acoustic waves, and strategies to optimize such parameters. Next, we analyze different kind of nanoparticles that we deem potential candidates for our subsurface operations. Then, we briefly discuss the excitation sources and make a comparison between continuous wave and pulsed sources. We finish by discussing the research gaps and challenges that must be addressed to incorporate these agents into our operations. At the time of this writing, no other study investigating the feasibility of using photoacoustic nanoparticles for tracer applications was found. Our work paves the way for a new class of passive tracers for oil reservoirs. Photoacoustic nanotracers are easy to detect and quantify and are therefore suitable for continuous in-line monitoring, contributing to the ongoing real-time data efforts in the oil and gas industry.

scholarly journals An empirical study of oil and gas value chain agility in the UAE

2018 ◽  
Vol 25 (9) ◽  
pp. 3541-3569 ◽  
Author(s):  
Ala Shqairat ◽  
Balan Sundarakani
Keyword(s):  
Supply Chain ◽  
United Arab Emirates ◽  
Value Chain ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Value Chains ◽  
Study Region ◽  
Content Type ◽  
Moderate Effect ◽  
The Impact

Purpose The purpose of this paper is to investigate the agility of oil and gas value chains in the United Arab Emirates (UAE) and to understand the impact of implementing supply disruption (SD) strategies, outsourcing strategies (OS) and management strategies (MS) on oil and gas value chain agility (VCA). The results can support the oil and gas industry across the UAE to build resilience in the value chain. Design/methodology/approach The research design consists of a comprehensive literature review, followed by questionnaire-based survey responses of 106 participants and comprehensive statistical analysis, thus validate the developed theoretical framework and contribute to both practical and methodological approaches. Findings The findings indicate that oil and gas value chain in the UAE has moderate a significant degree of SD, when OS in place that are synchronized with the overall MS. Among the hypotheses developed, two were accepted thus warranting both SD strategies (r=+0.432) and MS (r= +0.457) found to have a positive moderate effect on VCA. The third hypothesis was rejected by revealing OS (r=+0.387) found to have a positive moderate relationship with VCA. Therefore, implementation of all three strategies has a positive moderate effect on the agility of the value chain and, therefore, supports to sustain competitive position. Research limitations/implications Some of the limitations of this research include the geographic coverage of the study region and other methodological limitation. Practical implications The research provides guidance for oil and gas supply chain managers to better understand the critical factors that impact and determine VCA. The paper also describes relevant strategies that should be taken into consideration by these managers in order to build their agile value chains. Social implications The research contributes to the social dimensions of supply chain sustainability of how resilient is the oil and gas value chain during uncertain conditions, so that it can respond to uncertain changes in order to contribute to corporate social responsibility. Originality/value This research is the first of its kind in the UAE region to assess the link between dimensions of agile value chain, OS, SD strategies and MS primarily from the Emirates of Abu Dhabi and Dubai.

Integration of Radio Frequency Identification and GIS for Asset Management

2008 ◽  
Author(s):  
Joseph Hlady ◽  
Somen Mondal
Keyword(s):  
Radio Frequency ◽  
Radio Frequency Identification ◽  
Asset Management ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Rfid Technology ◽  
Time Data ◽  
Gas Industry ◽  
Frequency Identification ◽  
Control Loss

The use of Radio Frequency Identification (RFID) has grown substantially in the past few years. Driven mostly by the retail supply chain management industry and by inventory control (loss prevention), RFID technology is finding more acceptance in the security and personal tracking sectors beyond simple pass cards. This growth has of course resulted in greater acceptance of RFID technology and more standardization of process and systems as well as decreased per unit costs. The oil and gas industry is being exposed to the potential use of RFID technology, mostly through the safety and equipment inspection portion of construction management. However, the application of RFID technology is expected to expand to the material tracking and asset management realms in the near future. Integrating the information provided by RFIDs with EPCM project and owner/operator Geographic Information Systems (GIS) is a logical next step towards maximizing the value of RFID technology. By linking assets tracked in the field during movement, lay-down and construction to a GIS, projects will have accurate, real-time data on the location of materials as well as be able to query about those assets after commissioning. This same capability is being modified for post-commission use of RFID with facility GISs. This paper outlines how existing GISs used during the EPCM phases and those employed after commissioning can display, utilize and analyze information provided by RFID technology.

Quantifying Economic Uncertainties and Risks in the Oil and Gas Industry

2021 ◽  
pp. 154-184
Author(s):  
Sorin Alexandru Gheorghiu ◽  
Cătălin Popescu
Keyword(s):  
Business Performance ◽  
Oil And Gas ◽  
Water Injection ◽  
Oil And Gas Industry ◽  
Oil Field ◽  
Gas Industry ◽  
Field Development ◽  
Drilling Rig ◽  
Oil Field Development ◽  
Oil Gas

The present economic model is intended to provide an example of how to take into consideration risks and uncertainties in the case of a field that is developed with water injection. The risks and uncertainties are related, on one hand to field operations (drilling time, delays due to drilling problems, rig failures and materials supply, electric submersible pump [ESP] installations failures with the consequences of losing the well), and on the other hand, the second set of uncertainties are related to costs (operational expenditures-OPEX and capital expenditures-CAPEX, daily drilling rig costs), prices (oil, gas, separation, and water injection preparation), production profiles, and discount factor. All the calculations are probabilistic. The authors are intending to provide a comprehensive solution for assessing the business performance of an oil field development.

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