Petroleum Companies Adopting New Digital Tools to Predict the Future

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Petroleum Companies Adopting New Digital Tools to Predict the Future

A Majority of Top 100 Largest Oil & Gas Firms Now Adopting New Digital Tools to Predict the Future, a Lloyds Register Report Shows

Petroleum Companies Adopting New Digital Tools to Predict the Future

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November 11, 2018 (Abu Dhabi) -- The energy industry may have emerged from its latest downturn, but the pressure on companies to find operating efficiencies remains unrelenting and hence 57% of the world’s top 100 largest oil and gas firms by market capitalization are turning to predictive analytics to unleash new savings, according to a Lloyd’s Register report launched in Abu Dhabi today on the eve of ADIPEC 2018.

Predictive analytics (PA) is the practice of extracting information from existing data sets in order to determine patterns and predict future outcomes and trends. Predictive analytics does not tell you what will happen in the future. It forecasts what might happen in the future with an acceptable level of reliability and includes what-if scenarios and risk assessment.

Companies using predictive analytics in unconventional wells have often been able to tie its use to demonstrable gains in improved drilling accuracy, efficiency or cost savings, and these firms are benefiting by $325,000 per rig by using machine learning to predict drill-bit locations, the 2018 Technology Radar Oil & Gas report showed. Similarly, companies operating natural gas pipelines in the eastern U.S. are benefiting by saving costs of $7 million per pipeline through predicting failures before they happen, the Lloyds Register study reported, the fourth in an annual series of award-winning technology research reports.

“This report makes clear that the oil and gas industry still has much to do to lay a solid foundation for using predictive technologies effectively,” said Nial McCollam, Chief Technology Officer of LR.“Companies will do this by solving data quality and standardization issues and establishing the external relationships that will give them access to the large volumes of data they need,” he said.

The Technology Radar research report, which reveals the pace, development and adoption of predictive analytics in oil and gas industry, sought the insights and opinions of industry leaders from across the energy sector, such as Schlumberger, PA Consulting Group, ConocoPhillips, Chevron, Shell, Halliburton Digital Solutions, Cognotient, Woodside Petroleum and Maersk Drilling.

The 2018 report brings in to focus how different companies are using predictive analytics and to what extent companies are transforming their own technology and data capabilities to predict a better performing and sustainable future between operators, service providers and technology makers.

Industry executives and other experts interviewed for this report have identified several fields of predictive and other advanced analytics application – and the industries where they are being used – with a third of the top 100 oil & gas companies reporting that their use of these tools has already had a positive impact of varying degrees. Unconventional wells, mainly in North America, have been the biggest early beneficiaries of predictive analytics to date.

Key findings of the predictive analytics report include:

  • 57 of the world’s 100 largest oil and gas firms are using, or have plans to use predictive analytics.
  • 34 of these 57 companies already using predictive analytics see value from deployment.
  • Companies using predictive analytics are benefiting:- by $325,000 per rig using machine learning to predict the drill-bit location and by saving costs of $7 million on gas pipelines in the eastern US through predicting failures.
  • Research proves predictive analytics are being tested and applied in machine learning to improve safety improvement capabilities, in unconventional wells to change management attitude and, in behavioral modeling to reduce the frequency of safety incidents.
  • Respondents believe Artificial Intelligence (AI) is unlikely to be applied beyond niche applications for another three (3) years.

PARTICIPANTS:

Eric Abecassis CIO, Schlumberger, Stephen Ashley Manager, Digital Transformation Solution Centre, Oil & Gas Technology Centre, Willem van Asperen Director, applied artificial intelligence, PA Consulting Group, Richard Barclay Manager, Advanced analytics, ConocoPhillips, Margery Connor Leader, Data science capability and Technology, Chevron, Daniel Jeavons General manager – data science, Shell, Michael Jones Senior director of strategy and M&A, Halliburton Digital Solutions, Adam Judelson Founder and CEO, Cognotient, Neil Kavanagh Chief science & technology manager, Woodside Petroleum, Narayan Laksham Founder and CEO, 4casting Systems, Joel Meltzner CEO and president, i4 Insight, and Morten Møller Pedersen Deputy asset manager, Maersk Drilling.