Four Steps Toward a Digital Oilfield Future
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Digital technology has had a huge impact in the oilfield. But could a digital strategy drive even greater efficiencies?
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Four Steps Toward a Digital Oilfield Future
- 1. HOW TO BUILD A DIGITAL OILFIELD STRATEGY IN FOUR STEPS GEreports
- 2. Oil companies today operate in a volatile environment. Low prices are driving down revenue, and operators are working on the narrowest of margins. Greater productivity holds the key to survival, GE Chief Economist Marco Annunziata argues in a recent paper. But how to get there?
- 3. Annunziata says the digital oilfield — combining sensor technology and cloud-based big-data analytics — can meet the challenges. It delivers on the ability to reduce unplanned downtime, increase asset optimization and improve overall operational efficiency.
- 4. Past efforts with digitization in the oil industry have not delivered on their full potential. One of the key reasons has been a “siloed” approach to deployment rather than a comprehensive strategy. THE CHALLENGE?
- 5. A clear strategy is key to realizing the value of the digital oilfield. We asked Ope Amosu, GE’s Senior Commercial Development Leader for Upstream Oil and Gas (North America), about the basic steps required to create one. Here’s what he said:
- 6. STEP 1 Get Input From Operational Staff
- 7. Senior leaders need to consider more than high-level issues, such as financial benefits, when developing digital strategy that will scale across an enterprise. Amosu says they must also understand what new technology means from a user point of view.
- 8. You need a lot of input from the actual users of this technology to get a true understanding of how a business is being operated… share this story
- 9. …I think their line of sight is the most valuable line of sight when you are creating a high-level strategy. share this story
- 11. Operations can be highly diversified within an oil company. Developing a comprehensive strategy should begin with identifying issues shared across the enterprise, Amosu says.
- 12. It’s all about identifying common themes. That’s where you can really get things to resonate… You want to build a unified baseline. share this story
- 13. Once that baseline is in place, it becomes easier to adapt new technologies to the unique needs of individual business units and operating environments.
- 15. When deploying new technologies, it is vital that technology and operations leaders share priorities, Amosu says. Creating cross-functional teams can foster a unified approach.
- 16. You need to have that cohesive relationship between technology and operations. They all need to have a similar motive, something that they are all trying to accomplish. share this quote
- 18. Standardization is becoming a strategic initiative in many areas, Amosu says. It helps drive greater efficiencies and operational similarities across an enterprise.
- 19. This is more of a solution-based approach versus a simple technology-based approach to drive an [outcome] you’re looking for. share this story
- 20. Technological standardization also helps develop a level of knowledge transfer and collaboration between operators, service companies and technology providers to improve operations.
- 21. GEreports