Using ICT Innovation to Meet Business Challenges and Gain Competitive Advantage
Oil and gas companies must take advantage of ICT innovations to meet their business challenges and gain competitive advantage. This study analyses the role of ICT innovation in the global oil and gas industry. The study will specifically look at 4 key ICT trend: M2M communications, big data, anywhere anytime collaboration, and network and infrastructure security, and how they can enable oil and gas companies to address their key business challenges: enhancing exploration and production, improving refining and manufacturing efficiency, and optimizing global operations. Increasing viability and integration of data across the global supply-chain can reduce risks, enable for quicker and more accurate decision-making, and reduce costs.
• Global energy usage will increase an estimated xx% between 2008 and 2035, with the oil and gas industry expected to meet much of this demand. With such a critical role to play in the global economy, the industry must not only explore new oil and gas opportunities, but must also ensure current operations run efficiently—all within strict environmental and governmental regulations. • Global competition for diminishing resources continues to drive the industry into increasingly remote and inhospitable sites such as Alaska, offshore Kazakhstan, and deep-sea locations. To find, explore, and utilize these new sites and to meet the increasing demand, the industry must use ICT innovations to improve exploration and production. • However, the exploration and capital costs needed to make new wells operational can often be prohibitively expensive; therefore, lowering operating costs and increasing recovery rates at existing wells is equally important. Increasing the efficiency of the refining and manufacturing process is a critical part of not only meeting need, but of insuring profitability. • Beyond finding and exploring new resources and improving the efficiency of existing wells, the global scale of the industry signifies huge gains possible by optimizing operations. Increasing viability and integration of data across the global supply-chain can reduce risks, enable for quicker and more accurate decision-making, and reduce costs. • This study will look in depth at how key ICT trends—M2M communications, big data, anywhere anytime collaboration, and network and infrastructure security—will enable oil and gas companies to address their key business challenges: improving exploration and production, improving refining and manufacturing efficiency, and optimizing global operations. • Oil and gas companies must take advantage of these ICT innovations to meet their business challenges and gain competitive advantage.
Capture and Process a Variety of Data to Identify Previously Inaccessible Reserves and Improve Well Performance
• The harder it becomes to find oil and gas reserves, the greater the need for better, more reliable information that can support timely decisions. • It has been estimated that petroleum engineers can spend as much as % of their productive time mining data to better manage well performance. • By integrating seismic and geologic data from multiple sources and using advanced data modeling combined with supercomputing, companies can increase the success rates of locating remote resources and unburden their engineers who can then focus on more productive work. • Analytics, optimization, and visualization techniques can render larger amounts of complex data in more intuitive ways, allowing engineers to improve their decision making and, ultimately, their production effectiveness.
Gain Greater Insight, Flexibility, and Responsiveness in Refining and Manufacturing Operations
• In downstream operations, oil and gas companies face thin margins and are under constant pressure to manage costs. Short-term volatility in both the supply of raw material (e.g., crude and feedstock) and the demand for products requires great insight, flexibility, and responsiveness in refining and manufacturing operations to remain competitive and profitable. • Real-time visibility into operations can help control costs and optimize the performance of assets, facilities, and employees, allowing nimble reaction to issues such as market dynamics, weather, and logistics. • It can also help improve safety, reduce environmental impact, and track regulatory compliance.
Table Of Contents
Exploring ICT Innovation in the Global Oil and Gas Industry Executive Summary Business Challenges in the Oil and Gas Industry Oil and Gas Industry Trends ICT Industry Trends Network and Infrastructure Security Big Data Anywhere Anytime Collaboration M2M Communications Applying ICT Innovations to Meet the Business Challenges within the Industry The Last Word Key Conclusions Recommendations The Frost and Sullivan Story