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Digitalization: The answer to low oil prices?

19 May 2015

The upstream industry is at a critical juncture. Downward pressures on oil prices are leading to investment cuts in digital oilfield projects. But the current environment can provide a perfect breeding ground for innovation. When low oil prices are eroding margins, the digital oilfield promises substantial savings. Low oil prices can actually be “a catalyst for change”, according to Helenio Gilabert (Schneider Electric).

Analytics has already been successfully implemented in exploration, for example in seismic analysis and drilling. Hence, the most interesting new opportunities are likely to arise in production optimization and maintenance, especially in the prevention of unplanned downtime.

This is the perfect moment to invest in analytics, experts say, because even marginal enhancements in overall efficiency can lead to substantial savings in production operations.

 “Companies will be looking for massive improvements in productivity and efficiencies and this should lead to an uptake of third platform analytics technology, software and solutions focused on improving these areas”, said Chris Lenzsch (EMC)”

In particular, cost reductions can be substantial across the whole value chain. Companies that are heavily investing into data analytics expect to see tangible results in terms of their optimization efforts.

Chevron executives, for example, maintain that their digital oil field initiatives already translated into hundreds of millions in cost savings and improved output since 2002.

“Analytics is going to bring a sweeping change in the industry, thanks to its huge potential of increasing efficiency and reliability”, said Philippe Flichy, Senior Digital Oil Field Advisor at the oilfield service company Baker Hughes.

By examining vast data sets, big data analytics promises to open new opportunities for energy companies.

This is the perfect moment to invest in analytics, experts say, because even marginal enhancements in overall efficiency can lead to substantial savings in production operations.

“Companies will be looking for massive improvements in productivity and efficiencies and this should lead to an uptake of third platform analytics technology, software and solutions focused on improving these areas.” Chris Lenzsch (EMC).

Upstream Intelligence conducted an in-depth study to find out exactly how low oil prices would impact oilfield analytics projects, and where there may be opportunities for innovation. The study covers:
•  Overview of the latest emerging digital and analytics technologies and applications in the upstream industry
•  Interview with experts at leading digital oilfield, analytics and automation companies including GE Oil and Gas, Baker Hughes, Schneider Electric and EMC
•  Analysis of the potential solutions to tackling low oil prices using available data and analytics technologies and knowledge

Get a complimentary 3000 word in-depth digitalization/oil price analysis here.

These challenges will be dealt with at the Data Driven Production Optimization Conference (June 16-17, Houston).

The Data-Driven Production Optimization Conference is an industry-leading forum in which experts in the field of production and operations data and analytics gather to share strategies to use operational data effectively to increase efficiency and improve production rates in your operating assets.

With sessions from Hess Corporation, Marathon Oil, Linn Energy, Halliburton and many more covering topics including big data visualization, predictive maintenances strategies, real-time operations and collaborative working environments, it is set to be the data analytics event on the upstream calendar not to be missed!

Find out what Hess, Marathon Oil, Linn Energy and Halliburton are going to be talking about here.

For more information, please contact:
Leonie Harper
Project Director - Data
DecomWorld | Upstream Intelligence
@DecomWorld | @UpstreamIntell
tel. +44 (0)20 7375 7560
e. lharper@upstreamintel.com




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