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Digital transformation for the oil and gas industry

How technology could unlock $1 trillion+ for oil and gas

The recent downturn in the oil and gas industry, along with continued price volatility and the cost of adapting for a more sustainable future, has seen many operators struggle to make targets. One positive result is that companies are taking a long, hard look at how they can work smarter.

This new mood of critical analysis is long overdue. Recent research suggests that 65% of capital projects valued at over $1billion run over budget or behind schedule in our industry. Meanwhile, World Oil has found that 69% of companies overrun on costs, and an incredible 80% on time.

The digital answer?

We’re all using digital technology in our daily working lives these days, but compared to many other industries, oil and gas lags behind. Reports from the World Economic Forum have recently suggested that better use of digital in our industry could add phenomenal value, unlocking at least $1 trillion by improving productivity and cutting waste.

Technology set to transform our industry includes 4D seismic imaging, robotics, and digitally enabled distribution. While some of these solutions are still emerging and will take a while to deploy, sophisticated, powerful software for project management and planning is already with us. You could start using a dedicated software suite - like mpower from Monitor - in a matter of days, with immediate benefits in cost-saving and efficiency. 

Advanced Work Packaging

Labour typically amounts to about 40% of cost on most oil and gas projects, but Time on Tools - the productive time our people spend actually doing their jobs - is woefully low. Advanced Work Packaging (AWP) means the right tools, materials, documents and transport arrangements can all be in place before the job starts.

AWP is a simple idea, but not so simple to put into effect. That’s where a digital solution like mpower comes in. mpower gives you a shared platform, so procurement, finance, engineering, HR, transport and any other relevant department can work together easily in real time, even if the people involved are in different countries and time zones. You can also share information with contractors and stakeholders outside your organisation.

For the project manager, mpower makes it a simple task to assemble the relevant details and approvals from everyone involved, while issuing orders for procurement and deployment of staff and equipment. With numerous case studies showing advanced work packaging can easily improve Time on Tools by around 25%, mpower for AWP is likely to repay its investment in next to no time.

As for implementation, mpower is easy to install and intuitive to use. It integrates seamlessly with popular software suites including SAP, Oracle E-business, IBM Maximo, Primavera and Microsoft Project.

The future, now

The total estimated value from digitalisation in our industry may one day far exceed the $1 trillion reported by the World Economic Forum, particularly when we take futuristic technologies like cognitive computing into account. While we may have to wait a few years for the full impact of new technologies to take effect, mpower can deliver real, tangible benefits right now.

28/10/2019 - project management, digital transformation

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