0000004019 00000 n 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. Businesses across all sectors are looking to review their processes and launch digital transformation projects. hެV{TS���n�D�c@�$�Bx�[��9 �� y�. The elimination of paper would also save about 800 million gallons of water for a benefit of $30 billion. 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 … Overcoming these obstacles generally requires executives to increase investments in digital processes, training and technologies. . 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. Digital holds tremendous potential for oil and gas operators. 0000007449 00000 n The challenges of implementing a digital strategy in a hardware-oriented industry like oil & gas have slowed progress in this area, but digital transformation is rapidly becoming a strategic requirement rather than an option. 0000016267 00000 n Oil and gas: value at stake for industry and wider society (by digital theme) Digital trends in the oil and gas industry Digital technology can help oil and gas companies reduce costs and improve efficiencies by making faster decisions and increasing workforce productivity. • The Oil and Gas industry must look outward and learn from others – continued low commodity prices demand greater efficiencies, as do investors, well aware of the benefits gained in other sectors. CO2-equivalent (CO2e) emissions would be reduced by about 1.3 billion tons, providing an environmental benefit worth about $430 billion. 0000059268 00000 n The elimination of paper would also save about 800 million gallons of water for a benefit of $30 billion. A digital transformation will also allow these businesses to integrate new hardware and software solutions with their existing infrastructure, which is particularly extensive for the oil & gas sector. Digital transformation was an effective strategy for staying ahead of the competition just a few years ago, but it’s rapidly becoming necessary just to stay even. A lack of support was a challenge for 25% of oil & gas execs. However, there are some further signs of change. 0000101147 00000 n 0000014724 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. Therefore, for companies making the case to go digital, there needs to be a clear tie back to the business value. Digital transformation is beginning to sweep the oil and gas industry, with oil companies now realizing the potential for impactful and long-lasting results, such as increased revenues, reduced costs and the improved safety and reliability of operations. Overcoming these obstacles generally requires executives to increase investments in digital processes, training and technologies. Technological advances such as hydraulic fracturing and horizontal drilling are able to reach previously inaccessible shale resources, keeping the price of crude oil low. and social media still have the potential to bring about great changes in oil & gas. The Oil & Gas industry is going digital! 0000014159 00000 n 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. Digital Transformation Initiative Oil and Gas Industry @inproceedings{2017DigitalTI, title={Digital Transformation Initiative Oil and Gas Industry… How the Oil & Gas Industry Benefits from Digital Transformation. 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. While using digital tools to operate, say, an oil well or a natural gas pipeline more efficiently is straightforward, it can be challenging to anticipate the long term benefits of a digital transformation initiative. The advent of the industrial internet, smart machines and big data are also helping transform once separate entities IT (Information Technology) and OT (Operational Technology). The analysis shows benefits in the following areas: Barriers to Successful Digital Initiatives, While the benefits of digitization are clear, many oil & gas firms have yet to adopt fully digital processes. Two years ago, we started to recap our favorite building and design articles for each month. The World Economic Forum’s Digital Transformation Initiative discusses the growing role of digitization in the oil & gas industry. 0000101494 00000 n in 2019. The oil and gas sector is no exception. In comparison, only 42% of respondents from other industries indicated that cutting costs was the driving factor behind their digital investments. Oil & gas companies work with extremely thin margins. 0000003436 00000 n 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. The oil and gas industry is on the brink of an acceleration in its digital transformation. These factors are combining with the increasing need for digitization to create the potential for disruption in the oil & gas industry. 0000101415 00000 n Other developments such as the proliferation of electric vehicles are also affecting the balance of supply and demand. 0000003258 00000 n 0000004134 00000 n A lack of support was a challenge for 25% of oil & gas execs. 0000096948 00000 n Only 19% of the respondents in oil & gas cited this factor as compared to 31% in other sectors. assessed the oil & gas sector’s potential benefits from digital transformation in a 2017 white paper that covers the decade from 2016 to 2025. today to learn more about how digitization can help your oil & gas business. Going paperless requires a commitment from an organization’s leadership to make it an on-going priority. 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. Furthermore, digital transformation will improve well delivery times and productivity by 20-30%. A lack of properly skilled teams was a barrier for 42% of oil & gas executives, whereas the average figure for other sectors was 37%. 0000010853 00000 n Outdated technology was a barrier for 24% of oil & gas executives, with 29% citing this factor in other sectors. Social media is becoming an indispensable tool for enhancing relationships with customers. Per the DTI for Oil & Gas white paper, there are four digital themes central to the digital transformation of the Oil & Gas industry. In summary: • Digital Transformation offers real potential for efficiency and performance improvements in Oil and Gas companies. Since this level of change must come from the top, leaders must establish their budget, set a clear vision and create the goals needed for individual departments to adopt digitization. Enhancing brand and reputation was comparatively less important to oil & gas executives at 37%, whereas 43% of executives outside this industry cited this benefit of digitization as being important to them. Digital transformation can allow a business to combine these technologies in ways that provide much greater benefits than using them separately. Reducing the current heavy reliance on paper is one of the most significant benefits of digitization in oil & gas, both in economic and environmental terms. The benefits of digitization to the oil & gas industry is only reinforced with an analysis published by the Boston Consulting Group in 2019. Oil and gas companies that respond to the ongoing industry volatility by investing in sustainable digital capabilities will be tomorrow’s winner. But long-established industries like oil and gas… They also need to focus on developing the talent and leadership needed to make this happen. Digital Transformation in oil and gas. Construction RFI: Here’s Everything You Need to Know, 10 No-Brainer Ways to Fast-Track and Improve RFIs, 10 Must-Read Building and Design Articles from January 2020, 6 Next Level Strategies to Improve As-Builts, How Machine Learning Is Making Construction More Human, 5 New PlanGrid Product Enhancements for RFIs, Submittals, and More, 3 PlanGrid Product Updates to Kick Off 2020. The key findings include a total value of about $1.6 trillion in value, which increases to $2.5 trillion when considering future technologies like cognitive computing. Download our ebook today to learn more about how digitization can help your oil & gas business. Only 19% of the respondents in oil & gas cited this factor as compared to 31% in other sectors. 0000005640 00000 n Welcome to the Digital Transformation Initiative (DTI). The World Economic Forum’s Digital Transformation Initiative discusses the growing role of digitization in the oil & gas industry. Senior leaders tout it can help optimize business processes, reduce operational costs, lower risks and gain information in real time for instant decision making. To become digitally native operations, oil and gas companies must invest in other areas in parallel with analytics. This white paper examines the value that Industry 4.0 brings to the oil and gas upstream industry. Over the past two years, spurred by resurgent oil prices, digital pilots have flourished across the value chain, promising an exciting future. The threat of digital disruption was also a significant finding for the oil & gas industry. Many oil & gas companies still rely heavily on paper, making it difficult to adopt emerging technologies like the Industrial Internet of Things (IIOT) and virtual reality (VR). 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. The benefits of digitization to the oil & gas industry is only reinforced with an analysis published by the. Download our. Successful digitization requires innovation to be a key feature of the corporate culture. 2020 Digital Operations study for oil and gas. The oil and gas industry is not a stranger to this and is progressing towards digital maturity. The key findings include a total value of about $1.6 trillion in value, which increases to $2.5 trillion when considering future technologies like cognitive computing. Digital transformation was an effective strategy for staying ahead of the competition just a few years ago, but it’s rapidly becoming necessary just to stay even. Improving customer experiences is also a significant reason to adopt digital technologies, although the figure of 41% was the same whether or not the respondents were from the. 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. Oil & gas businesses face additional challenges in adopting digital technologies, which is slowing their adoption rate compared to other sectors. While the benefits of digitization are clear, many oil & gas firms have yet to adopt fully digital processes. Field development will see savings in engineering of up to 70%, with the addition of field concepts with a higher value. For the most part, the industry has completed its proof-of-concept phase. Business leaders everywhere are becoming digital converts, inspired by the transformations that big data, advanced analytics, and machine learning can bring. The, is a survey by PricewaterhouseCoopers (PWC) that describes the challenges of digital transformation in the. We are dedicated to digital technology transformation in the oil and gas industry. 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 & gas firms will receive about $1 trillion in value, with wider society receiving benefits worth another $640 billion. 0000009234 00000 n 0000069419 00000 n Furthermore, digitization improves the accountability and transparency of that data. The oil & gas industry has historically lagged behind other sectors when it comes to digital technology. The Digital Transformation Market in the Oil and Gas Industry will grow by $ 33.89 bn during 2019-2023 “Industry analysts, such as The International Energy Agency, predict that digital tools will expand reserves in the upstream by 5% worldwide. With a fresh year ahead, diving into new ideas and concepts is a great way to begin 2020. 0000001076 00000 n Oil & gas firms will receive about $1 trillion in value, with wider society receiving benefits worth another $640 billion. Corpus ID: 31430919. 0000020248 00000 n Since this level of change must come from the top, leaders must establish their budget, set a clear vision and create the goals needed for individual departments to adopt digitization. Now, digital transformation initiatives across industrial manufacturing environments are driving the emergence of the fourth industrial revolution or Industry 4.0. Finally, leaders also need to track each department’s progress in their digital transformation and regularly evaluate the need for new implementation strategies. Beyond that, customers would save about $170 billion and achieve productivity improvements worth another $10 billion. The World Economic Forum assessed the oil & gas sector’s potential benefits from digital transformation in a 2017 white paper that covers the decade from 2016 to 2025. 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