With digital oilfield, a wide range of innovations are covered as in the case of predictive maintenance and fleet management. The innovations are the outcome of capable technologies such as cost-effective sensors, cloud computing and considerable data analytic. The good news is that many of the digital oilfield technologies are actually proven and as such, early adopters are already enjoying dividends. This is because the technologies offer merits such as cost savings, enhanced efficiencies as we all as benefits for HSE compliance.
Everything is created for a purpose and with digital oilfield technology; nothing could be further from the truth. Regardless of the benefits offered, there is still no full awareness of digital oilfield technologies. If you consider conventional themes for the oil industry such as operational efficiency, data integration, production optimization, decision-making support and workflow automation, you will realize that the main objective of the digital oilfield technologies is to curb operational cost and compensate for higher complexities. To achieve this objective, digital oilfield technology accelerates a good number of processes and tasks carried out by the engineers, field technicians, managers, financial analysts as well as geoscientists.
ERP-class systems represent the concept of horizontal software integration that was used traditionally. It works by combining various functions based on enterprise level such as production, operation, CRM, planning, engineering, finance, SCM and accounting. For oil and gas companies, renewed focus is being put on significant factors such as reduced costs and improved efficiency with a view of handling the low oil and gas price in the industry.
The challenges faced by companies in the oil and gas industry today requires the next step in digital oilfield, which basically entails industrial level integration. In this regard, the approach is based on vertical integration and it aims at creating an effective connection among vendors, buyers, sellers and customers.
The vertical approach
The industry vertical collaboration aims at solving the challenge of low oil and gas price in the industry sinceit has had a significant impact on many companies. Companies are innovating so they can be able to improve their operating and finance performance. One of the critical challenges that hinders progress is knowledge and awareness. This is because a significant percentage of the industry does not have a full grasp of the technologies of digital oilfield and their merits. As a result, there have been missed opportunities for investment.
The way forward
The most effective way of adopting technology is by getting connected first and then working on getting insights. With that, it will very easy to implement optimization. This also helps in managing things such as surplus oilfield equipment in Australia. If the project is stalled at the connection stage, it will not make it up the value chain and there will be no enterprise optimization. In that case, it is recommendable for a company to identify all the digital oilfield technologies and select the one with the most promising potential. This is because it will go a long way to improve efficiency and cut costs. Moreover, it will put a company on a cutting edge. A company can also engage in external collaboration, which involves working with technology providers.