Whitepaper Digital Transformation in Oil and Gas

WHITEPAPER
Drilling into the

future: Digital
transformation in
oil and gas
Introduction
While consumerization performance and results,

and user demand is driving executives are turning to digital
rapid digital maturity in transformation as the strategic
most customer-focused response.
industries, the asset-heavy
Combining a deep integration
oil and gas industry has been
of technology, operations, and
relatively slow to adopt digital
behavior, digital transformation
technologies at the same level.
has become a means to
Within an industry that relies achieve safer operations,
so heavily on hardware, the financial predictability, real-time
high costs and implementation insights, and risk mitigation.
challenges associated
Early adopters have been
with digital strategies have
able to drill deeper, reduce
been hindering progress for
operational expenses, optimize
decades.
production, and maximize
As external factors like market recovery, along with enjoying
volatility, geopolitical risk, numerous efficiency benefits.
energy transition, insider
In the upstream sector alone,
threats, and constrained capital
Strategy& estimates that the
negatively impact company
right combination of digital
page 2
www.belatrixsf.com | belatrixsf.com/blog
technologies deployed in from smart facilities, digitally-
the right way could generate enhanced supply chain, and
operational and capital savings digitally-enabled workers
of around US$100 billion to to artificially intelligent
US$1 trillion by 2025. sub-surface, predictive
maintenance software, digital
The ongoing challenge
data architecture, and many
for oil and gas companies
more.
is how to embrace that
combination before their Clearly, the potential of digital
chosen technologies become technology is limitless, which
outdated. is why, in this whitepaper, we
explore some of the practical
Right now, the variety of
and economic impacts that
technologies is vast: robotic
digital transformation is
process automation (RPA),
having on the oil and gas
cloud computing, data
sector, both today and in the
analytics, artificial intelligence
future, as well as outlining
(AI), virtual reality (VR),
how companies can start
augmented reality (AR),
innovating quickly to capitalize
blockchain, and industrial
on this digital revolution.
Internet of Things (IIoT) are
all beginning to reshape the
industry. Innovations range
page3

We will examine:
• Digital impacts in oil and gas
• Tomorrow’s disruption and digital

opportunities
• Building a foundation for digital

transformation
page 4
Digital impacts in oil
and gas
One of the biggest attractions to digital technology is
that it enables a high level of automation across the
value chain, from drilling and production to control and
monitoring.
RPA software, in particular, has been an attractive

solution for oil and gas companies thanks to its ability
to tackle tedious, manual tasks and administrative work.
The deployment of physical robots, on the other hand,
mitigates the risk of performing hazardous tasks like on-
site safety checks.
Some of the results of automation are an increase in

sustainability, reduced environmental impact, and higher
levels of efficiency, along with cost reductions, simplified
decision making, and safety enhancements.
In 2019, a report by Ernst and Young (EY) found that

75% of oil and gas companies were in the process of
implementing RPA, while 87% were already leveraging
advanced analytics, and 70% were planning to implement
IIoT technologies before the end of 2021.
The mix of IIoT and data analytics has paved the way for
page 5
“digital twin” technologies, which allow operators to model
and replicate physical assets in digital form, simulating
how fields and infrastructure operate under different
conditions.
One use case example of simulation technology comes

from Italian multinational Eni, which has developed a
supercomputer that can analyze data from oil and gas
reservoirs to discover exploration prospects in weeks
instead of months, thus saving millions in exploration
drilling.
Another impactful solution is predictive maintenance

software, which can prolong the life of assets and
operations by predicting failures before they happen.
This technology can reduce downtime and repair costs
while helping to meet strict regulatory and compliance
demands.
Oilfield services provider Petrofac has developed

its own real-time operation dashboard that creates
dynamic predictions and integrates with the industry’s
most common management systems. The systems
can raise work orders and actions, create insights into
operational maintenance, and maximize asset uptime and
productivity. Using big data, the system can predict an
operational outage 10 days before it happens, making the
company much more proactive than reactive. The result is
an increase in profits, safety, and resource integrity.
These are only a few examples of the digital innovation

that is impacting the oil and gas industry today. For
companies looking to join these frontrunners, it’s vital
that they look forward and begin to prepare for the next
generation of industry innovations.
page 6
Tomorrow’s
disruption and digital
opportunities
Technological and engineering innovation has been
a part of oil and gas since oil was first drilled in 1859.
Today’s digital era is a huge opportunity to progress that
innovation many steps forward.
Over the next five years, the industry is expected to

see several evolutions in physical infrastructure and
supporting technology, according to DNV GL’s ‘Technology
Outlook 2025’ report. To prepare for this wave of digital
and technological disruption, companies should start to
invest in areas that suit their business objectives while
maximizing profits and production.
One area worth exploring is IIoT sensors for real-time

monitoring of plants and infrastructure. When combined
with insights from sonars, cameras, and autonomous
vehicles, IIoT sensors can lead to huge increases in
security and safety, particularly when it comes to pipeline
integrity.
AI and analytics are great technologies for optimizing
page 7
production, steering the flow of resources, navigating
assets more efficiently, and reducing maintenance costs.
Process simplification and automation technology built
on AI software can vastly improve reservoir management
and drilling processes, increasing the speed and safety
of operations. By combining that with real-time data
analytics, companies can implement round-the-clock
monitoring and optimization systems to reduce downtime
and costs.
Blockchain will likely play a significant part in the

industry’s future through its capacity to provide instant
verification on transactions and secure data storage and
management, but its true potential will only be realized
if companies can collaborate on the development of
blockchain networks.
Out in the field, employees can benefit from on-site

technical equipment like AR/VR goggles to view vital
information in real-time, or 3D printers for printing spare
parts.
8
page
The core element behind all of these possible innovations
is data. Organizations must have the ability to manage,
measure, and track all data that they produce, as it allows
them to make precise business decisions that lead to
sustainable, impactful innovations.
It can’t be overstated enough that data access and data

visualization are absolutely essential for extracting value
from digital technologies, so prioritizing data management
and maintenance is a must.
Looking ahead, as lower oil prices, oversupply, and

increasing technical complexity force more companies
to embrace digital transformation strategies, those who
can successfully adapt to the digital world will ensure their
relevance in the marketplace well into the future.
page 9
Building a
foundation for digital
transformation
For every industry, the adoption of digital technology
is no longer a choice; it’s an unavoidable element of
modern business. Even so, digital transformation is not
a “technology-first” approach, but more of a holistic,
business-driven strategy that ensures continuous
innovation and operational improvement.
As the industry gains digital momentum, there are some

basic starting points that oil and gas companies should
establish in order to build a strong foundation for their
transformation.
In order to formulate a business-driven strategy, it’s vital

to understand what the business hopes to achieve by
adopting digital technology - look at where the industry is
heading, figure out what the company needs to keep up
with competition, and choose a path with a definitive goal.
Forward-thinking oil and gas companies are already

investing in infrastructure, security, and governance
frameworks to equip themselves for future development.
page 10
They are also looking to deploy digital across the entire
organization and to the wider ecosystem.
One example of wide digital deployment comes from

Statoil, which launched a centralized digital improvement
program in 2017. The company has since set up a digital
center of excellence with plans to invest up to US$250
million in digital and emerging technologies that will
increase its use of data, analytics, and robotics.
Employing a similar strategy would require a focus on

the company’s application landscape. Most oil and gas
companies still operate in silos and use heavy legacy
systems, so they can benefit by moving or upgrading
those to cloud, software-as-a-service (SaaS), and other
agile approaches.
Furthermore, the organization’s leadership team must

be brought into the fold from the very beginning,
as leadership buy-in is
necessary to keep a digital
transformation strategy
on-track. Without their
commitment and support,
expect inevitable long delays
in decision-making and
financial aid.
British Petroleum (BP)

runs digital boot camps for
executives and encourages
employees to develop apps
that improve workflow
processes. The company
has also created a data lake
page 11
for engineers across the world to access information
with ease. These are both great examples of obtaining
leadership buy-in and ensuring a culture of data
throughout an organization.
Digital technology is more affordable than ever, allowing

adopters to gain a competitive advantage. With the right
kind of partnerships, it’s possible to seize this opportunity
even faster by leveraging the expertise of well-established
technology providers.
page 12
About Belatrix Software
Belatrix Software helps companies help organizations become digital
thrive in the digital world. leaders.
Organizations partner with Belatrix Belatrix’s clients include both

to turn ideas into high quality, established Fortune level and
innovative software based on emerging, venture backed firms.
highly-tuned Agile development Some of the firm’s clients include
processes. Customers use Disney, Adobe, AOL, PwC, and
Belatrix’s digital transformation Shutterfly.
services to create best-in-class
Belatrix is a South American
software products, lower time to
company with offices in New
market, and gain competitive edge.
York, San Francisco, Barcelona,
Belatrix’s dedicated labs, focusing Mendoza, Buenos Aires, Bogotá
on UX, Blockchain, Cloud, mobile, and Lima. For more information,
RPA, DevOps, and QA automation, visit https://www.belatrixsf.com.
Contact us
page 13

Whitepaper Digital Transformation in Oil and Gas

Uploaded by

Copyright:

Available Formats

Whitepaper Digital Transformation in Oil and Gas

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Whitepaper Digital Transformation in Oil and Gas

Uploaded by

Copyright:

Available Formats

WHITEPAPER

Drilling into the

While consumerization performance and results,

• Tomorrow’s disruption and digital

• Building a foundation for digital

RPA software, in particular, has been an attractive

Some of the results of automation are an increase in

In 2019, a report by Ernst and Young (EY) found that

One use case example of simulation technology comes

Another impactful solution is predictive maintenance

Oilfield services provider Petrofac has developed

These are only a few examples of the digital innovation

Over the next five years, the industry is expected to

One area worth exploring is IIoT sensors for real-time

AI and analytics are great technologies for optimizing

Blockchain will likely play a significant part in the

Out in the field, employees can benefit from on-site

It can’t be overstated enough that data access and data

Looking ahead, as lower oil prices, oversupply, and

As the industry gains digital momentum, there are some

In order to formulate a business-driven strategy, it’s vital

Forward-thinking oil and gas companies are already

One example of wide digital deployment comes from

Employing a similar strategy would require a focus on

Furthermore, the organization’s leadership team must

British Petroleum (BP)

Digital technology is more affordable than ever, allowing

Organizations partner with Belatrix Belatrix’s clients include both

You might also like