Faster and
better decision-making and shorter time to first oil and gas top the list of
expected benefits that digital technologies can drive for upstream oil and gas
companies, a new survey from Accenture and Microsoft Corp. reports. Respondents
to the “Accenture and Microsoft
2017 Upstream Oil and Gas Digital Trends Survey” also estimated the monetary
value of digital technologies and noted the next wave’s potential to further
transform their business, despite ongoing low oil prices.
Asked to identify the top ways digital benefits their companies,
faster and better decision-making (30 percent) remained foremost, as in the
2016 edition of the survey. Faster time to produce oil and gas, however, jumped
to second place from fifth last year (19 percent). Reduced risk enabled by
real-time decision support was the third most important (12 percent).
Now in its sixth edition, the global survey showed the upstream
areas most expected to benefit today from digital are production (28 percent),
geological and geophysical (27 percent), and drilling and completion (19
percent).
“Digital technologies like IoT and
predictive analytics can have a significant impact on the upstream oil and
gas companies operations,” said Sandeep Dutta, managing director and lead for
Accenture’s resources group in India.
“IoT and analytics can help analyze
diverse sets of operational data like drilling parameters and cross
disciplinary data (geological models) and provide incisive operational
insights. Predictive analytics can also reduce downtime, spare parts inventory
and boost production in conventional as well as non-operational asset classes.
Additionally, by using digital technologies at large, upstream companies can
reduce finding, development and maintenance costs; material costs can also be
optimized through the right digital interventions.”
Almost two-thirds (62 percent) of the more than 300
professionals surveyed perceive business value from digital technologies, with
27 percent totalling it at $50 million to $100 million or more for their
companies. However, 14 percent of upstream respondents don’t know how much
monetary value digital is delivering, 20 percent don’t measure it, and 4
percent believe digital is adding no value to their businesses today.
Most of the respondents expect their companies to realize value
from digital technologies and 73 percent said most of their oil and gas fields
will become fully automated using these technologies in three to five years.
On the other hand, 39 percent of respondents said the greatest
risk from a lack of digital investment is becoming uncompetitive; more than
double the next group at 19 percent who cited the inability to transition to a
new energy landscape. Surprisingly, despite the rise of connected devices on
oilfields further exposing upstream companies to cybersecurity risks, the fear
of increased cyberattacks came in at a distant third (18 percent).
“Digital technologies that upstream companies are investing in
today include mobile devices (56 percent), cloud (45 percent), big data and
analytics (43 percent) and IoT (42 percent). Priority investment areas for
these technologies are asset management and maintenance, capital project
management and production optimization.
“It’s not always about petabytes of data. It’s about a set of
solutions and technologies that could not have been achieved even five years
ago,” said Egbert Schroeer, Worldwide Managing Director, Process Manufacturing,
Microsoft Corp. “Digital is doing more than helping reduce operational costs
through increased worker productivity with mobility. The cloud, better asset
management and remote monitoring through analytics and artificial intelligence
(AI) are driving operational excellence and subsurface data management for the
oil and gas industry. However, it will be essential for upstream companies to
quickly develop in-house capabilities and add external talent for data
analytics and other leading technologies, to stay ahead in the digital
revolution.”
Upstream companies are also now adding digital workforce
challenges to their ongoing talent concerns.
Recruitment is their biggest challenge in this regard,
especially skill-building for contingent labor, freelancers and onboarding new
hires. Most said it will take three to five years to build the necessary
digital skill base. For example, the great majority of respondents (85 percent)
felt their companies lacked fully mature analytics capabilities. While they
plan to develop that area, the expected three-to-five-year time frame in which
they aim to do that might be too extended - competitively speaking - as
technologies advance rapidly. This is especially relevant, as an Accenture Strategy
study,