Moderate big data investment in APAC despite potential for op efficiencies in oil and gas
Only around one in five oil and gas companies (21%) in Asia Pacific see themselves as highly digitalized today. However, close to half of senior oil & gas professionals in Asia Pacific (45%) already see solid or high potential for big data and analytics to transform the operating efficiency of the industry in 2016, according to research by DNV GL, the leading technical advisor to the oil and gas industry.
The research among over 900 senior oil and professionals reveals that despite its potential, only 39% in Asia Pacific plan significant or moderate investment in big data and analytics in 2016, marginally above the global average of 36%. The IT related technology expected by most respondents to have significant or high investment in 2016 is cyber security attack / prevention (50%), followed by automation / remote operation (49%).
“A few early adopters are emerging, but many in the industry are still at very early stages of maturity in data analytics and data-based decision making. The industry is in something of a ‘Catch 22’ situation; seniors in our industry believe operational efficiency and productivity could be boosted by as much as 20% through digitalization. However, they also state investment seems to be lagging just when we need it most. Our in depth interviews point to cost constraints and uncertainty about the cost-saving potential of digital technologies as the key reasons,” says Arve Johan Kalleklev, regional manager for South East Asia and Australia, DNV GL – Oil & Gas.
“As for other areas of innovation, collaboration could prove essential to bridge this digital gap and ensure experience transfer in the conservation of data, efficiency drivers and ways to ultimately leverage the opportunities big data represent for the industry,” adds Kalleklev.
DNV GL has identified key opportunities to reduce costs by optimizing day-to-day operations2:
· Condition monitoring for more effective maintenance and inspection regimes, dictated by specific, industry, historical and real-time data. Replacing planned maintenance with preventive maintenance, driven by early warnings from sensor data, can significantly reduce downtime.
· Instant information from wells can provide timely decisions on underperforming wells and other potential issues that, if not dealt with, could lead to substansial costs.
· Detecting anomalies while drilling and during operation can also lead to more effective decisions for cost savings.
Elisabeth Tørstad, CEO of DNV GL – Oil & Gas, says: “Our customers say that a number of challenges need to be addressed to capitalize on the opportunities within Big Data; robust strategies to capture, manage and utilize critical data, access to reliable, trustworthy data, and stringent security to minimize security breaches. We are working with the industry to help it manage the risks and leverage the opportunities associated with digitalization.
“Cyber-attacks on in the oil and gas industry have grown in stature and sophistication in recent years, making them more difficult to detect and defend against, and costing companies increasing sums of money to recover from,” adds Tørstad.
This is reflected in investment priorities the coming year; cyber security attack prevention, detection and response is the IT-related digital technology expected by respondents in Asia Pacific to get the most investment in 2016 (50% compared to 44% globally).