The COVID-19 pandemic has proved that new technology in oil and gas industry continues to outpace many businesses. Although numerous companies have done an outstanding job trying to accelerate their digital transformation, most of them have a limited approach to applying those solutions.
As technology innovators in the oil and gas industry at Digital Oil & Gas Solutions, we understand that embracing technology comes with its challenges. However, we know these difficulties can turn into beneficial opportunities to increase production and extend assets’ life span.
While industry leaders learn to recognize the level of technology adoption within their companies, it will be easier to detect obstacles that stand on their way to success. The practical and appropriate use of digital technologies will drastically change actual levels of efficiency and improve production. To fully embrace it, we will explain the importance of evaluating the maturity of digital analytics in your company. With this evaluation, you will be able to recognize gaps and approach areas of opportunity. We will explain some of the leading technologies in use today and their power and contribution to boosting economic recovery.
What is the maturity level of data management within your organization?
When we talk about maturity in data management, we refer to measuring an organization’s capacity to engage constant improvement in a specific discipline. Maturity assessments help organizations set goals, plans, and strategies to reach objectives and act. Since every company manages data, measuring performance and progress gives a broader picture of their maturity and opportunity areas.
The analytics industry has created a model covering certain elements that help assess techniques, digital tools, and data maturity. As companies evaluate these elements, they will gain a fuller picture of data technologies’ maturity within their organization.
This model enables companies to consider and improve specific elements according to what generates more value for them. Therefore, an organization will detect those elements that have better performance and find ways to examine the potential of new technology in oil and gas industry.
An excellent way to measure and test oil & gas software solutions is by looking for a partner that employs a Proof of Value (PoV) business engagement model. This way, companies can be guided and assessed without making any investment for the first months then decide what services and products will help them reach a higher maturity level in data management.
Main obstacles in the adoption and improvement of data analytics technology
Although the application of new technology in oil and gas industry improves efficiency in every aspect of the workflow, companies continue to face obstacles when adopting data analytics technology. As we enter a new era of extraordinary data availability, digital trends are disrupting conventional business models. Hence, companies need to be aware of what lies ahead to prepare and bypass those barriers.
- Culture: Embracing change is not always the focus of work culture, which influences the lack of confidence and concern about being displaced from work. The fear of becoming an early adopter or experiencing a failure signifies that new technology in oil and gas industry needs to be developed entirely instead of casually applied.
- Finance: The need for flexibility plus the pressure on budget management around operations makes it difficult to invest in technologies. If companies don’t invest in innovation, they won’t have evidence of their power.
- Expertise: Although data is available on the assets, not understanding what it can achieve decreases its potential and use. The need for knowledge brings a lot of skepticism to the development status
- of data analytics technology.
- Awareness: The perception of opportunities data analytics technologies can grant is weak. There is a significant need for certainty on its potential benefits to the industry.
- Guidance: Leadership is crucial when embracing innovation. Not having a clear path or a leader in charge of digital operations makes it more challenging to demonstrate data technologies’ capabilities and benefits.
Four IT technologies used in oil and gas industry
The following solutions show briefly how the oil and gas industry is pursuing operational excellence by taking advantage of new digital developments.
#1 Virtual models of production assets
Digital twins are virtual replicas of physical products and services that allow running simulations and preventing potential bottlenecks and failures. However, the energy industry has unlocked its full potential. The concept allows businesses to create advanced online systems and visualize all their pipeline infrastructure in one place. With a network of sensors loading data on operational conditions into the digital twin, the virtual model is updated continuously in real-time.
With anytime access to critical metrics from the fields, companies can not only optimize operations and improve assets’ performance but also plan maintenance activities and prevent potential downtimes. When existing conditions are continuously monitored, the impact on decision-making procedures is vast.
#2 Industrial IoT
Energy companies should keep an eye on multiple operations and optimize, automate, or digitize them as needed. The Industrial Internet of Things is taking over manual checking and monitoring of wells, reservoirs, meters, tanks, pumpjacks, and pipelines. Consequently, O&G players can minimize operating costs and nonproductive time while ensuring better employee security and reducing environmental impact. Adopting this technology can make enormous differences and secure a competitive advantage in the industry.
#3 Machine learning
Over the years, machine learning has been one of the leading IT technologies used in oil and gas industry. Collecting, structuring, and analyzing large data volumes is rather challenging and costly. So, it is hardly surprising that ML continues gaining ground in the energy sector. In fact, it is inevitably changing the way industry runs operations. Teaching machines to perform and use humans’ cognitive power empowers stakeholders to make well-informed decisions on time and on target.
#4 Business intelligence and data analytics
Business intelligence implies software products and services to collect, store, and analyze data sets and translate them into informative reports, charts, maps, infographics, and summaries. All this information is transformed into actionable insights that help companies expand their market share, unleash additional revenue sources, and outmaneuver the competition. Since data management is one of the toughest challenges, adopting a data management platform for automated processing of all data formats is essential.
Unleashing the power of technology in the oil and gas industry
The use and benefits of digital technology and analytics to expand production and extend field assets’ lives are increasing. Executives are employing oil & gas software solutions to improve performance, and we have partnered with many of them to help them achieve their goals. Contact us and find out more on how Digital Oil & Gas Solutions can help your organization unlock the power of technology.