Success for most oil and gas organizations now relies on them accelerating their digital transformation, according to a new survey by IQPC.
In our last post, we heard that the use of predictive maintenance in oil and gas is on the rise. But even though 92% of those believed predictive analytics would increase operational efficiency, lower capital costs and result in more safe and profitable operations – only around 30% have predictive and prescriptive capabilities embedded in less than 25% of their assets.
In the survey from Software AG and IQPC, Asset Optimization in Oil and Gas, respondents were also asked about their preparedness for several emerging technologies.
This is what they had to say:
- 47% were already using cloud services, with another 24% indicating they are ready to use it
- 25% are already using IIoT with 28 % ready to use it
- 26% are using Big Data analytics and another 41% are ready to use it
- 11% are using artificial intelligence and another 26% are ready to use it.
Almost a quarter of respondents feel that new technology will disrupt the entire oil and gas industry in under five years. And a similar percentage feels that facilities will gain measurable competitive advantages from the large-scale adoption of technology.
The results of our survey have pointed to emerging trends and clear actions that the oil and gas industry needs to implement to survive and thrive in the future upturn.
Here are the five we think to be the most telling:
- Oil and gas professionals understand that updating asset optimization practices to fit with industry 4.0 is a requirement and will complement safer, more reliable and more profitable organizations
- Industry professionals maintain that an increased focus on technical asset maintenance is necessary and that legacy infrastructure is not sufficient in the digital age of today
- Bench-marking participants confirm that technical knowledge is lacking in industry, and that having relevant knowledge sharing and training in place will contribute to OE and make them more competitive
- There is a strong, unspoken desire among oil and gas industry professionals to adapt their knowledge and skills in the technology space
- Transparency in oil and gas organizations needs to be increased to encourage innovation and empower employees to own their procedures and look for where to innovate next.
Recipe for Success
Below is my perspective on these key trends and some advice on addressing the challenges to improving asset management on your quest to achieve operational excellence:
- Develop an “Asset Prioritization” framework for identifying business critical assets
- Conduct a physical inventory assessment of critical assets to ensure assets are catalogued across operational landscape
- Map data repositories to critical assets
- Undertake an “Asset Optimization” technology capability assessment relative to analytics capabilities, device connectivity and data availability
- Start with a small and focused approach and build from this base as technology and organizational capabilities mature within the organization
- Leverage the knowledge of operational experts to embed into analytics prediction recommendations
- Institutionalize the knowledge of the operational experts by creating a Center of Excellence that captures analytics and process knowledge
- Re-design work and governance processes to consistently align operations with maturing technology capabilities
- Ensure that there is appropriate focus on “change management” methodologies to ensure adoption by the field employees.
The future is digital for oil and gas organizations.