Industries are gradually adopting technology to reshape their operating environment to reap the benefits of increased productivity, efficiency, and cost savings. The oil and gas industry is no exception and is well on its way to digital maturity. Due to the increasing price and demand volatility, the oil and gas industry is under significant pressure to modernise its old operational models to achieve greater resilience. For companies like Winson Oil that want to stay competitive and grow, it has become critical to improve asset reliability and availability while lowering costs and carbon emissions.
Organisations recognise digitalisation as a critical enabler in achieving these goals. Core technologies such as data analytics, cloud computing, artificial intelligence, and blockchain open up a world of possibilities for process optimisation, asset tracking, automation and simplification, and data management in the Oil and Gas industry.
With the oil and gas industry embracing technology to reshape its operating landscape, let us delve into the potential opportunities and challenges of this transformation.
OPPORTUNITIES
Outstanding Operational Performance
Operational excellence, which has long been a cornerstone of oil and gas operations, will become even more critical in the coming years. Oil and gas companies must do more with existing assets as investments remain cautious and labour remains scarce. As a result, digital transformation, process optimisation and automation, and continuous operational improvement will be critical to delivering affordable, dependable energy sources.
Digital Twins and Artificial Intelligence Domination
Process automation and workflow improvement help the oil and gas industry reduce costs and operate more efficiently. Furthermore, data insights can assist the industry in identifying ways to operate more safely and reliably, reduce costs, increase efficiency, and manage risks more effectively.
Digital twins are one way that oil and gas companies can capitalise on digital insights. Oil and gas companies can use these digital representations of physical assets to model their assets, test operational changes, and improve asset maintenance and operational decision-making.
Methane Emission Reduction
Pressure is mounting outside the industry for oil and gas companies to do more to reduce overall methane emissions.
Going digital is the most efficient way for oil and gas companies to reduce their carbon footprint. It combines data collection methods with analytics tools to optimise plant operations, track carbon emissions, and streamline work processes.
Oil and gas companies with reduced emissions will have easier access to capital while appealing to younger and more environmentally conscious employees.
CHALLENGES
Global implementation
Oil and gas companies operate in various locations worldwide, with multiple branches, sites, stations, and facilities. As these operations are decentralised, it is difficult to implement digital transformation programmes on time and with consistency. The fact that each site will have its own set of considerations that will determine the success of the transformation complicates matters even more.
Furthermore, the weather and temperature of the locations can also impact equipment performance, durability, and reliability. The distance and accessibility will determine how quickly and easily upgrades can be pushed to the area. Employee education on the new technologies and procedures will also be required.
Low Digital Maturity
Digital maturity is recognising the importance of technological innovations and having a solid tech-oriented internal culture. Data-driven organisations with a flexible IT system and respect and familiarity for technology at all operational and management levels are considered digitally mature.
The oil and gas industry has a rating of 5 out of 10, which is not a good indicator. According to the rating, implementing a digital transformation programme can be difficult
Digital maturity is recognising the importance of technological innovations and having a solid tech-oriented internal culture. Data-driven organisations with a flexible IT system and respect and familiarity for technology at all operational and management levels are considered digitally mature.
The oil and gas industry has a rating of 5 out of 10, which is not a good indicator. According to the rating, implementing a digital transformation programme can be difficult
because new technology or processes introduced may face strong internal resistance. This resistance can hinder the adoption of new solutions, reducing their effectiveness and resulting in poor outcomes. When this cycle begins to repeat, even the management may become sceptical of the transformation's value.
Another consequence of low digital maturity is conceptual difficulties with digital transformation. These conceptual issues can make it difficult to propose innovative solutions and lead to ineffective transformation concepts.
Evolution of Technology
It is not uncommon for technology to become obsolete during the development or implementation of a digital transformation programme. This type of situation occurs mainly under three circumstances.
- The digital transformation programme has been developing for so long that it allows technological advancement.
- The technology used could also be a trend that grew in popularity and usage but faded away.
- As the technology utilised advances so quickly, new and improved versions are appearing at an alarming speed.
THE DIGITAL TRANSFORMATION OF WINSON OIL
Winson Oil, founded in 1998, is a major international energy trading company with a strong presence in the Asian oil trading and bunkering markets. They maintain offices and active projects across Asia, including Hong Kong, Singapore, Taiwan, Mainland China, Dubai, and other locations. They are constantly looking for new opportunities and technologies that will allow them to grow and develop their core competencies.
Moving forward, Winson Oil will begin work on its Oil Storage and Terminal Facilities project, focusing on digital transformation prospects related to it. In the meantime, their technological efforts will be directed towards expanding and strengthening their core businesses.
