Why Oil Industry Will Focus On Digitalization In Upcoming Years.

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According to Bob Dudley- BP chief executive, the Oil and gas industry is not keeping the pace of other sectors in digitalization. In times when all aspects of life are depending on internet connection, big data analysis and automatization, oil industry still struggles with effective use of digital technologies.

Rapid advances in technology such as sensors, big data or data virtualizations give our industry opportunity to effective use of digital technologies, to collect and chiefly analyze gathered data from wells. This is a game changing process leading to increased survivability of companies in downturn times.

Average offshore rig has 30,000 sensors that generate many terabytes of data daily and for now only less than one percent of collected data is being used – rest is not analyzed. Situation looks similar when it’s about oil and gas equipment, only three to five percent is connected. Although conception of vigorously working Internet of Things (IoT) is rather on poor level at this moment, operators using a predictive data driven approach to maintenance experience 36 percent less unplanned downtime.

Now imagine possibilities of algorithms which could analyze data gathered from sensors inside wells and machines on an ongoing basis, without storing it. This could provide many new solutions based on processed data – we could drastically increase efficiency, improve our decision making and knowledge about reservoirs.

Lower oil and gas prices forced companies to reduce costs and data analysis is a promising way to make it easier. In the new era of digital technology, data is very powerful tool to generalize from. That’s why upgrading technologies and enabling Internet of Things will be main focus for the industry in upcoming years – to keep costs low while enhancing efficiency and ensuring long term business growth.

Depending on David Eyton (BP group head of technology) words, our oil and gas reserves in 2050 achieved through this new technology could be bigger than 150% of forecasted amount of reserves available when best of actually available technologies were used.

Sources:

Digital Transformation Initiative (DTI) Oil and Gas Industry, World Economic Forum White Paper in collaboration with Accenture
www.rigzone.com

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