Agenda

The full adaptation of digital technology has been challenging for companies, multiple reasons can be sited for that, but the main colbert for failure has been the MOC processes and the willingness of employees to adapt to new ways.

Oil and gas has always been a very technology driven industry. The use of sensors (IOT) and the data generated has always been at the core of the industry for safe and reliable operations.

Oil and Gas 4.0 is to position oil companies in the heart of the digital transformation and become a leader in the AI and digital technology development.

Adapting new innovations into the oil and gas industry is challenging. Oil and gas has been a conservative industry, and rightly so due to the safety risks associated with operations.

How can we embed a mindset of agility and progression into the oil and gas company of the future?

For unconventional assets, development of new technologies to drill, completed and fractured wells, as well as technologies and methods for a better understanding and identification of sweet spots have proven to be essential.

While today’s technology advancements have become game changers, there is still plenty of room for growth. We’ve got to make a step change in technology and operations to maximise the value of our current and future assets.

Over the past five years, we have delivered minimal major breakthrough technologies. We’ve continued making small tweaks to well landing zone, perforation cluster spacing, proppant development, fluid volumes, placement design, etc.  Recently, the industry realised that data is an asset, and our challenge is how to use it, which also provides us with countless opportunities to utilise data analytics and machine learning.

On the other hand, automation, particularly drilling and completion, is not just about drilling faster, it is about drilling more efficiently and delivering better wellbore designs in support of completions. Our aim should be an oilfield that is entirely autonomous.  Materials science, nowadays, is changing how we think about well completions. There is a breakthrough in nanotechnology and ultra-strong, lightweight alloy that are both driving step change performance in unconventional completions.

Digital twins’ technology and using VR goggles during all of the maintenance, drilling, completions, and production operations should be included in the next stage of solutions.  A lot of these organic mudstones may be absorbing a lot of oil, and there are some things we can do on the chemical side to help liberate some more hydrocarbons.

Collectively, we are incumbent to develop the next generation of game-changing technologies and enhance industry collaboration, and best practices amongst world oil and gas producers. The Next Step Change is here now! 

The world is changing. The oil and gas industry is changing. So, we also need to change to stay competitive and deliver our strategies. We’re in the midst of a significant transformation regarding the way we produce products thanks to the digitisation of manufacturing. This transition is so compelling that it is being called Industry 4.0 to represent the fourth revolution that has occurred in manufacturing.  While many organisations might still be in denial about how Industry 4.0 could impact their business or struggling to find the talent or knowledge to know how to best adapt it for their unique use cases, several others are implementing changes today and preparing for a future where smart machines improve their business.

People see the oil industry as pretty stodgy and old-fashioned and we need to really understand how we can interact in a digital world. The rate of change is exponential, as is the scope of digital, too, because digital is disrupting every industry in the world. It’s not a threat, but a massive opportunity, and we as a sector have got to transform, to become simpler and sustainable. We need help to do this and we need to learn. Organisations need to be ambitious about becoming the digital organisation in the industry and to do that they need to attract bright, tech-savvy people.  We need the right people and capabilities, and a strategic approach to resourcing. The integration of digital technology in oil and gas will dramatically change the skills needed in the industry to be successful. It will also allow companies to focus their recruiting and hiring efforts on a smaller pool of qualified individuals for key roles.

The large number of oil, gas, and petrochemical business employees expected to retire in the next few years along with anticipated industry growth has reinforced the need to attract younger workers. The industry will look to the millennial generation to fill roles and support expansion.  Millennials, also labeled “Generation Y” are defined as those born roughly between 1980 and 2004. Millennials have an unmatched characteristic of unwavering self-confidence, a better understanding, and usage of technology, which will enable them to position themselves to understand and conquer future challenges within the complex industry of oil and gas. Currently, millennials account for nearly one-third of the oil and gas industry’s workforce.

A long-term recruiting strategy is the best solution to address the human capital deficit issues once and for all. The strategy includes building strong internal and external mechanisms through strategic partnerships with various institutions such as educational and government bodies; building a strong reputation for the industry to attract young talent and for students to consider this a career choice. Furthermore, the strategy should include using various methods of recruitment while keeping in mind the different types of talent pools and generational differences as well as the current recruitment trends. Lastly, the strategy should add value to the employees as well as to the organisation. Successful implementation of all these factors would lead to a sustainable recruiting strategy for the oil and natural gas industry.

The next generation of employees and leaders have different interests and expectations than most current workers. To extract the best work from their employees, oil and gas companies will need to engage and inspire their people. This may mean identifying a collective purpose and strategic vision, integrating digital competencies and leadership, or even integrating mindfulness programmes that boost each individual’s contributions. Furthermore, companies may integrate new collaboration and communication technologies to enhance employee experiences, assess and coach employee teams to improve performance or even reconfigure the physical workforce environment to heighten teaming abilities. Each of these levers can enrich a company’s workforce, with the aim of improving overall company performance.

According to the IEA 2018 energy outlook the global energy demand is set to grow by 25% between today and 2040 with oil and gas constituting a minimum of 50% of this energy demand. However the backdrop of price volatility in the second half of 2018, other technological (and digital) market disruptions and the demands by society for a reduction in GHG emissions leave energy companies confronting a turning point that requires setting different strategies to thrive in uncertain times.

A relentless focus to extract more value from projects and assets through innovation, increased operational efficiencies, and reduced capital and operating expenditures is therefore a must.

Going it alone is not an option, this will require value-based collaborations across the industry.