While the benefits of digitization are clear, many oil & gas firms have yet to adopt fully digital processes. Business leaders everywhere are becoming digital converts, inspired by the transformations that big data, advanced analytics, and machine learning can bring. Analysts expect this industry to approach digital transformation more cautiously than other sectors, but technological developments such as the cloud, big data and social media still have the potential to bring about great changes in oil & gas. Digital Transformation Initiative: Oil and Gas Industry 7 This White Paper focuses on how digitalization will enable the Oil and Gas industry's current and future transformation. 0000004134 00000 n For example, cloud computing can break down the silos that are restricting businesses agility. Senior leaders tout it can help optimize business processes, reduce operational costs, lower risks and gain information in real time for instant decision making. 0000063536 00000 n Technological advances such as hydraulic fracturing and horizontal drilling are able to reach previously inaccessible shale resources, keeping the price of crude oil low. Oil and gas companies that respond to the ongoing industry volatility by investing in sustainable digital capabilities will be tomorrow’s winner. The benefits of digitization to the oil & gas industry is only reinforced with an analysis published by the Boston Consulting Group in 2019. These factors are combining with the increasing need for digitization … The 2018 Global digital IQ survey clearly shows that oil & gas executives are primarily investing in digitization to cut costs, with 54% of respondents reporting this benefit as the most important to them. Predictive analytics is seen as the priority capability for digital solutions in this sector 61% of oil and gas professionals consider the cloud to be ‘important’ to their transformation plans 50% of these professionals see analytical capability, combining both content and structured data, as business critical It is almost impossible not to notice the ways in which digital transformation is overhauling today’s … Only 41% of the oil & gas executives in this survey indicated that their transformation initiatives even have a digital component. Beyond that, customers would save about $170 billion and achieve productivity improvements worth another $10 billion. The truth is, most oil & gas businesses haven’t realized the full value of their investments in digitization. 0000014159 00000 n Less than one fourth of the survey respondents indicated that they have realized more value than expected from their digital investments. Increasing profits was the second most important reason for digitization for oil & gas executives at 44%, as compared to 41% for executives in other sectors. Overcoming these obstacles generally requires executives to increase investments in digital processes, training and technologies. 0000017713 00000 n Now it’s time to capture business value at scale by treating digital as the top-level strategic priority it is and driving the next wave of … This requires an investment in the right technologies as it’s essential for unifying the new processes for managing data and documents with existing procedures. Tying Digitization to Direct Business Needs, survey clearly shows that oil & gas executives are primarily investing in digitization to cut costs, with 54% of respondents reporting this benefit as the most important to them. This capability provides oil & gas businesses with a new level of intelligence that goes beyond merely improving efficiency and reaching out to customers more effectively. Two years ago, we started to recap our favorite building and design articles for each month. %PDF-1.4 %���� DIGITAL TRANSFORMATION IN THE OIL AND GAS INDUSTRY: A$1.5 TRILLION OPPORTUNITY Digitalization could unlock up to $2.5 trillion of industry and societal value. The oil and gas sector is no exception. Other developments such as the proliferation of electric vehicles are also affecting the balance of supply and demand. Oil & gas businesses face additional challenges in adopting digital technologies, which is slowing their adoption rate compared to other sectors. Field development will see savings in engineering of up to 70%, with the addition of field concepts with a higher value. They also need to focus on developing the talent and leadership needed to make this happen. A lack of support was a challenge for 25% of oil & gas execs. 0000101147 00000 n 0000101415 00000 n Technology has rapidly shifted from being the legacy enabler to being a game changer. For the most part, the industry has completed its proof-of-concept phase. Download our ebook today to learn more about how digitization can help your oil & gas business. Other developments such as the proliferation of electric vehicles are also affecting the balance of supply and demand. 0000101494 00000 n 0000101068 00000 n Retention of these workers also created a challenge to digital transformation for 33% of oil & gas respondents, with only 24% of those in other sectors citing retention as a barrier to digital transformation. 0000015615 00000 n 0000057661 00000 n Other use cases of digital transformation specific to the oil and gas sector include: Performance forecasting; Production forecasts across thousands of wells; Enhanced oil recovery 0000010853 00000 n Canadian oil and gas companies are using technology to reduce costs and improve cash flow. Insight Into the Future of Machine Learning in Construction When most people hear the term “machine learning” the last thing they think of is a technology with a human touch. The elimination of paper would also save about 800 million gallons of water for a benefit of $30 billion. Many oil & gas companies still rely heavily on paper, making it difficult to adopt emerging technologies like the Industrial Internet of Things (IIOT) and, To help oil & gas companies in their journey towards digital transformation, a new downloadable guide is here to help: “, discusses the growing role of digitization in the, . Outdated technology was a barrier for 24% of oil & gas executives, with 29% citing this factor in other sectors. 0000009234 00000 n DTI research supports collaboration between the public and private sectors focused on ensuring that digitalization unlocks new levels of prosperity for both industry and society. Only 19% of the respondents in oil & gas cited this factor as compared to 31% in other sectors. Digital Transformation Initiative Oil and Gas Industry @inproceedings{2017DigitalTI, title={Digital Transformation Initiative Oil and Gas Industry… Furthermore, digitization improves the accountability and transparency of that data. in 2019. A lack of properly skilled teams was a barrier for 42% of oil & gas executives, whereas the average figure for other sectors was 37%. Other developments such as the proliferation of electric vehicles are also affecting the balance of supply and demand. To help oil & gas companies in their journey towards digital transformation, a new downloadable guide is here to help: “Plans, Papers and Pipelines.”. This process should begin with the processes with the greatest impact on the organization, although it will eventually need to become a key part of all processes. The World Economic Forum’s Digital Transformation Initiative discusses the growing role of digitization in the oil & gas industry. . This process should begin with the processes with the greatest impact on the organization, although it will eventually need to become a key part of all processes. Finally, leaders also need to track each department’s progress in their digital transformation and regularly evaluate the need for new implementation strategies. CO2-equivalent (CO2e) emissions would be reduced by about 1.3 billion tons, providing an environmental benefit worth about $430 billion. Technological advances such as hydraulic fracturing and horizontal drilling are able to reach previously inaccessible shale resources, keeping the price of crude oil low. The 2018 Global Digital IQ is a survey by PricewaterhouseCoopers (PWC) that describes the challenges of digital transformation in the oil & gas industry. We’ve continued this trend... How to Create Superior As-Builts and Wow Clients Most of us can barely remember what we had for breakfast on Tuesday, let alone what we did on a work project back in 2014. 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