Too many energy companies seem to be lagging in their digital transformation efforts. They may be complacently relying on historical patterns of investment in inflexible systems – causing a lack of transparency in best practices.
Or worse yet, investments may be in redundant capabilities due to siloed organizational practices.
At Software AG we have been exploring how oil and gas companies can ensure volatile oil prices do not compromise their ability to remain market leaders. What we discovered was that there are five ways to transform energy operations, from production to pipeline to pump. “Winning way number one” is turning up production capacity by making better use of their data.
What is the solution? Energy companies need to leverage their data to keep up, step up and go further than their competitors. From optimizing equipment alone, production volume can be expected to grow by two or three percent. This represents many millions of dollars more revenues.
U.S. offshore oil & gas rigs can easily generate 1-2 TB of real-time operations data daily. And a typical offshore production platform has more than 40,000 data tags. The innate power of this data can unlock new paths to even greater capacity.
The challenge lies in managing this data. Staff can spend between 30-70 % of their time trying to gather the right data. They can find it difficult to maintain network connections or sensor access, leaving them with little time to analyze and act on data. More often than not, the organization lacks a centralized view of operational conditions and trends.
But with real-time insights into exploration and production metrics, companies can use the data to guide better business decisions. The Industrial Internet of Things and analytics are driving new levels of oil and gas productivity.
By leveraging edge-to-edge connectivity you can connect and integrate a multitude of machines, devices, sensors and equipment in more places. This allows you to capture more data and deliver real-time streaming analytics. Many solutions work with SCADA and other protocols, helping you to leverage legacy systems.
Optimizing your data means you can better correlate, providing proactive analysis, reporting and alerting capabilities to achieve greater asset performance and reduce disruptions in production. A 1% improvement in operating efficiency in the oil and gas sector can translate into savings of $5-6 billion annually.
The proof lies with our customers. We helped one European gas wholesaler to unify its disparate systems and processes from siloed operations and coordinate its reporting throughout the enterprise. The company was able to reduce its number of IT systems by 80% and to pull data from around 3,000 telemetry points – then pushing information for streamlined viewing through a unified partner portal.
This is what we do. Learn more about how Software AG can help you to transform digitally and buck the prevailing winds of volatile oil prices. In my next post, I will discuss “winning way number two” – reducing costs with predictive maintenance.
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