We will reach a 7% reduction in production costs thanks to: advanced algorithms to ensure reduced asset downtime and higher production rates; and, predictive analysis systems, based on big data, which allow us to optimize maintenance, logistics and well operating costs. From your experience, how should oil and gas companies see the current digital evolutions and how will business models in the oil and gas industry be impacted and changed? Annual cost saving potential in the next five years, based on currently known technologies. Oil and gas companies were pioneers of the first digital age in the 1980s and 1990s. From a technology perspective, the growth of data analytics coupled with the industrial IoT is generating new ways of optimizing workflows. You only need to look at what CEOs of the biggest oil and gas companies are saying to realise the strategic importance being placed on digitalisation. The oil and gas industry is not a stranger to this and is progressing towards digital maturity. In late 2019, Recab’s partner Congatec introduced a new rugged class of embedded edge server technologies designed for the digitization of the upstream and midstream oil and gas industry. It has also created a “data lake” of more than 1 petabyte, where billions of data records from global operations are captured and made available to engineers across the firm. Many upstream companies have for some time been using elements of digitization, which we define as the strategic business value of data-based technology that includes the Internet of Things (IoT), cloud computing, and artificial intelligence. Although many oil and gas companies are trying out new digital ways of working, no one can claim to have “cracked it” just yet. Traditional operators are concerned by the emergence of unconventional players with differentiated, market-leading digital capabilities. The industry produces Big Data, but advances in analytics, including machine learning and artificial intelligence (AI), provide new ways of interpreting this data, producing previously unknowable insights. Upstream technology and innovation solutions help you source, manage and advance strategic technology developments across the oil and gas value chain. By continuing to browse the site you are agreeing to our use of cookies. Some oil and gas companies still view digital technology as something peripheral to the core business. Identifying opportunities to spend more efficiently yields powerful savings, but PowerAdvocate also worked with this customer to help them to identify ways to hold costs steady in rising markets. When applied to all major service categories within a play (or a region), this analysis is particularly powerful as it highlights where suppliers’ work rates varied. The sector is starting to fully recognize that power, and more and more upstream companies are scrambling to seize it. Two good examples are Cognite, a technology company focused on upstream operations in the Norwegian part of the North Sea, and Baker Hughes General Electric, which was created in 2017 in an effort to industrialize digital capabilities. The upstream oil and gas sector has faced a variety of challenges such as unpredictable oil prices, changing patterns of demand and ensuring safe working conditions at remote sites. Based on these figures, a graph was generated showing the distribution of fatal and non-fatal accidents in 2007 in the upstream sector. Digital transformation of a company needs to be holistic and address all the elements of the operating model. Where and how is digitalisation likely to impact upstream oil and gas? As we’ve discussed, Lower 48 companies are more advanced in their adoption of digitalisation than their conventional upstream peers. 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