Oil and gas tech businesses must innovate to keep the fuel flowing as oil prices slowly recover from the 2014 fall while also staying competitive as investments in alternative renewable energy gain traction. Any professional racer will tell you that equipment isn’t enough to win a race. Securing a race plan, road-testing it, and developing the intelligence to know exactly when, where, and how to hit the throttle are equally vital. When it comes to the oil and gas industry’s future, using innovative technology such as ‘smart drilling’ may be vital for companies to manage and execute a more unified approach to working with oil wells.
Data has shifted from an asset to a liability for oil and gas companies in today’s world. Companies are awash in data and need a mechanism for managing and authenticating it. Blockchain is one technology that can potentially solve these issues. It provides a single, unalterable record of transactions between several parties. The real test for the oil and gas industry will be how quickly it can adapt to the numerous opportunities that blockchain will present.
Distributed ledger technology will also make downstream activities like product exchange, secondary distribution, demurrage, and claims administration more efficient and transparent.
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The Future Of Oil And Gas
Many oil and gas businesses may be attempting to reinvent themselves by adopting capital discipline, committing to climate change, and changing business models. The positive impact of such adjustments is mirrored in a study, with nearly two-thirds of oil and gas executives stating that their firms’ strategic changes have been very favourable.
The industry’s transition has just begun, and simply managing or riding oil price cycles is no longer an option. Oil and gas strategists should do the following in the next 12 to 18 months:
- Make their resource portfolios more efficient and effective.
- Embrace and develop smart energy transition goals.
- In a tight labour market, recruit, train, and retain personnel.
- Comply with additional ESG (environmental, social, and governance) standards.
- Set achievable interim goals and progressive communication and transparency strategies that can create purpose-driven, tech-enabled, and human-powered businesses
Incorporating Blockchain In Oil And Gas
The oil and gas industry’s supply chain links are global in scope and complexity. Each supply chain member must keep track of its transactions and systems, which must subsequently be reconciled with transactions of other players in the network. Blockchain allows this to be done quickly, with complete transaction visibility and less overhead. It has significant potential to lower the risk of energy trading fraud and error, improve financial transactions and simplify regulatory reporting requirements.
As the industry adopts more sensor technology, blockchain can store transactions and accounting data directly on these devices, reducing process time by connecting assets to services contracts directly. One of the most compelling value propositions is to create a private blockchain-enabled ecosystem that encompasses the complete transaction life cycle. From price discovery and trading through back-office settlements and payments, blockchain becomes the mechanism.
The Application Of Smart Drilling In Oil And Gas
Energy companies have long prioritized increasing the productivity of their oil and gas wells. This is now more crucial because the majority of reservoirs already created and manufactured are simple conventional reservoirs: and they don’t produce enough oil and gas to meet the increasing demand globally. This necessitates the development of unconventional reservoirs to meet the world’s energy needs. However, unconventional reservoirs require higher drilling and workover costs when drilling in deep waters, as well as other offshore and horizontal wells.
These are 3 amazing benefits that smart wells can bring to the oil and gas industry:
- Help boost the investment’s profitability by lowering the cost of production.
- Increase the Net Present Value (NPV) by lowering the number of drilled wells, workovers, and intervention procedures.
- Manage the production and injection zones, delay gas and water breakthroughs, and avoid/delay the coning of water/gas and the formation of sand.
Suffice to say, smart drilling can help increase overall productivity. As a result, the well must be finished in a “smart” manner from the start to ensure optimal productivity and profitability throughout the well’s life cycle.
Increase the Net Present Value (NPV) by lowering the number of drilled wells, workovers, and intervention procedures. Manage the production and injection zones, delay gas and water breakthroughs, and avoid/delay the coning of water/gas and the formation of sand.
Suffice to say, smart drilling can help increase overall productivity.
As a result, the well must be finished in a “smart” manner from the start to ensure optimal productivity and profitability throughout the well’s life cycle.
OGPC is a supplier, service provider and contractor to the oil & gas, petrochemical, power, palm oil and general industries.
Digital Transformation Challenges In Oil And Gas
1. Implementing Across Global Oil & Gas Locations
Companies that deal with oil and gas do business all around the world. Because of the dispersed structure of these operations, implementing digital transformation projects on a timely and consistent basis is difficult. To make matters even more complicated, each site will have its own set of factors that will influence how effective—or ineffective—the transition will be.
2. Slow Rollout, Fast Obsolescence
The implementation of digital transformation programs will take a long time, especially if they involve remote sites such as oilfields. This does not include the time required to conceptualize, scope, draught, pitch, review, and fund the strategy in the first place. Premature obsolescence might be one of the implications of such a lengthy rollout.
3. Low Digital Maturity Rating
A strong tech-oriented internal culture and an appreciation of the value of technological advances can be termed digital maturity. Digitally mature companies are data-driven, have a flexible IT system, and are familiar with technology at all levels. Unfortunately, this does not apply to the entire oil and gas industry. According to Deloitte, the oil and gas business has a digital maturity rating of only five out of ten.
This is a significant barrier for any digital transformation effort since it implies that new technology or procedures may face internal opposition. This opposition slows the adoption of new solutions, reducing their efficacy, which leads to bad results. The cycle may repeat itself, with management unable to understand the value of the change and becoming even more hesitant than before.
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