The economic benefits of digitalization in the oil and gas industry

2021 ◽  
Vol 27 (3) ◽  
pp. 672-692
Author(s):  
Pavel A. DROGOVOZ ◽  
Nikita I. KHARIN
Keyword(s):  
Economic Impact ◽  
Production Management ◽  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Economic Benefits ◽  
Competitive Advantages ◽  
Negative Effects ◽  
Gas Industry ◽  
The Past

Subject. This article explores the process of introducing digital technologies into the oil and gas industry production and management and getting the economic impact of such implementation. Objectives. The article aims to identify and assess the economic impact of the introduction of digital production technologies in the oil and gas industry over the past five years, and describe the positive and negative effects of digitalization of the oil and gas industry. Methods. For the study, we used the methods of comparative and statistical analyses, forecast data obtaining, and synthesis of results. Results. The article reveals the main effects of the digitalization of the oil and gas industry over the past five years. It describes the positive and negative effects of the digitalization of the oil and gas industry and predicts the effectiveness of this process. The article presents developed strategic guidelines to create new competitive advantages of the oil and gas industry through the production digitalization. Conclusions and Relevance. To maintain efficiency and create additional competitive advantages of the Russian oil and gas industry, it is necessary to actively introduce digital technologies of production and management, new IT-strategies. The findings and results obtained can be useful to scientists specializing in the digitalization of the oil and gas industry and for managers of different levels of oil and gas sphere to apply them in strategic production management.

ESTIMATED NET ECONOMIC BENEFITS FROM AUSTRALIA'S UPSTREAM OIL AND GAS INDUSTRY: 1980-2010

1996 ◽  
Vol 36 (2) ◽  
pp. 130
Author(s):  
L. Hogan ◽  
S. Thorpe ◽  
S. Zheng ◽  
L. Ho Trieu ◽  
G. Fok ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Economic Benefits ◽  
Gas Production ◽  
Export Market ◽  
Gas Industry ◽  
Oil And Gas Production ◽  
The Past ◽  
Australian Economy ◽  
Oil And Gas Resources

Australia's oil and gas resources industry has made a significant contribution to the Australian economy and is expected to continue to do so over the next 15 years and beyond. While oil and gas production from Bass Strait has been the most important part of the industry in the past, offshore oil and gas production has increased strongly in northwest Australia over the past decade. Future growth in the industry is expected to be mainly associated with further strong growth in gas production for both domestic use and the export market. This paper contains an assessment of some major net economic benefits from the exploration, development and production of Australia's oil and gas resources during the period 1980 to 2010.

Trends and Prospects of Development of the Oil and Gas Sector in the Context of Digitalization

2020 ◽  
Vol 26 (1) ◽  
pp. 35-45 ◽  
Author(s):  
A. G. Kazanin
Keyword(s):  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Global Market ◽  
The Arctic ◽  
Business And Society ◽  
Gas Industry ◽  
Exploration And Production ◽  
Oil And Gas Sector

The modern oil and gas industry is heavily dependent on the processes and trends driven by the accelerating digitalization of the economy. Thus, the digitalization of the oil and gas sector has become Russia’s top priority, which involves a technological and structural transformation of all production processes and stages.Aim. The presented study aims to identify the major trends and prospects of development of the Russian oil and gas sector in the context of its digitalization and formation of the digital economy.Tasks. The authors analyze the major trends in the development of the oil and gas industry at a global scale and in Russia with allowance for the prospects of accelerated exploration of the Arctic; determine the best practices of implementation of digital technologies by oil and gas companies as well as the prospects and obstacles for the subsequent transfer of digital technologies to the Russian oil and gas industry.Methods. This study uses general scientific methods, such as analysis, synthesis, and scientific generalization.Results. Arctic hydrocarbons will become increasingly important to Russia in the long term, and their exploration and production will require the implementation of innovative technologies. Priority directions for the development of many oil and gas producers will include active application of digital technologies as a whole (different types of robots that could replace people in performing complex procedures), processing and analysis of big data using artificial intelligence to optimize processes, particularly in the field of exploration and production, processing and transportation. Digitalization of the oil and gas sector is a powerful factor in the improvement of the efficiency of the Russian economy. However, Russian companies are notably lagging behind in this field of innovative development and there are problems and high risks that need to be overcome to realize its potential for business and society.Conclusions. Given the strategic importance of the oil and gas industry for Russia, its sustainable development and national security, it is recommendable to focus on the development and implementation of digital technologies. This is crucial for the digitalization of long-term projection and strategic planning, assessment of the role and place of Russia and its largest energy companies in the global market with allowance for a maximum number of different internal and external factors.

Technology Focus: Decarbonization (July 2021)

2021 ◽  
Vol 73 (07) ◽  
pp. 64-64
Author(s):  
Nigel Jenvey
Keyword(s):  
Business Models ◽  
Oil And Gas ◽  
Natural Capital ◽  
Ghg Emissions ◽  
Oil And Gas Industry ◽  
Policy Support ◽  
Continuous Change ◽  
Gas Industry ◽  
The Past ◽  
Technology Focus

Have you noticed the change in the oil and gas industry over the past year with its engagement in carbon management, decarbonization, and net-zero-emissions targets? Policy support and technology advances in alternative energies have delivered massive cost reduction in renewables more quickly, and to a greater degree, than expected. Over the past few years, more of the world’s capital has been spent on electricity than oil and gas sup-ply, and more than half of all new energy-generation capacity is now renewable. Some elements of society, therefore, have suggested that this is the beginning of the end for the fossil-fuel sector and call for investors to turn away from oil and gas and “leave it in the ground.” In more than a century of almost continuous change, however, the oil and gas industry has a long track record of innovative thinking, creative solutions, and different business models. SPE papers and events that covered decarbonization during the past year show that a wide variety of solutions already exist that avoid, reduce, replace, offset, or sequester greenhouse gas (GHG) emissions. It is clear, therefore, that decarbonization technologies will now be as important as 4D seismic, horizontal wells, and hydraulic fracturing. That is why we now bring you this inaugural Technology Focus feature dedicated to decarbonization. The experience and capability of the entire JPT community in decarbonization is critical. Please enjoy the following summary of three selected papers on the role of natural gas in fuel-switching; carbon capture, use, and storage (CCUS); and hydrogen technologies that deliver the dual challenge of providing more energy with less GHG emission. There are many ways to engage in the SPE decarbonization efforts in the remainder of 2021. Regional events have addressed CCUS, hydrogen, geothermal, and methane. There is also the new SPE Gaia sustainability program to enable and empower all members who wish to engage in the alignment of the future of energy with sustainable development. The Gaia program has an on-demand library of materials, including an existing series on methane, and upcoming similar events on other energy transition, natural capital and regeneration, and social responsibility priorities. Get involved through your SPE section or chapter or contact your regional Gaia liaison to find out what Gaia programming you can support or lead at www.spe.org/en/gaia.

Economic Impact of the Permian Basin’s Oil and Gas Industry

2015 ◽  
pp. 21-64 ◽  
Author(s):  
Bradley Ewing ◽  
Marshall Watson ◽  
Terry McInturff ◽  
Russell McInturff
Keyword(s):  
Economic Impact ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry

Challenges of Developing Marginal Fields in the Current Climate of Oil and Gas Industry

2021 ◽  
Author(s):  
Amina Danmadami ◽  
Ibiye Iyalla ◽  
Gbenga Oluyemi ◽  
Jesse Andrawus
Keyword(s):  
Oil And Gas ◽  
Dynamic Environment ◽  
Poor Performance ◽  
Oil And Gas Industry ◽  
Economic Benefits ◽  
Gas Industry ◽  
Field Development ◽  
Quality Technology ◽  
Indigenous Participation ◽  
Marginal Field

Abstract Marginal field development has gained relevance in oil producing countries because of the huge potential economic benefits it offers. The Federal Government of Nigeria commenced a Marginal Fields program in 2001 as part of her policy to improve the nation’s strategic oil and gas reserves and promote indigenous participation in the upstream sector. Twenty years after the award of marginal fields to indigenous companies to develop, 50% have developed and in production, 13% have made some progress with their acquisition while 37% remain undeveloped. The poor performance of the marginal field operators is due to certain challenges which have impeded their progress. A review of challenges of developing marginal fields in the current industry climate was conducted on marginal fields in Nigeria to identify keys issues. These were identified as: funding, technical, and public policy. Considering the complex, competitive and dynamic environment in which these oil and gas companies operate, with competition from renewables, pressure to reduce carbon footprint, low oil price and investors expectation of a good return, companies must maintain tight financial plan, minimize emissions from their operations and focus on efficiency through innovation. The study identifies the need for a decision-making approach that takes into consideration multi criteria such as cost, regulation, quality, technology, security, stakeholders, safety and environment, as important criteria based on which to evaluate the selection of appropriate development option for marginal fields.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

Case Histories of the Resolution of Bolted Joint Leakage in the Oil and Gas Industry

2016 ◽  
Author(s):  
Warren Brown ◽  
Geoff Evans ◽  
Lorna Carpenter
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Lessons Learned ◽  
Bolted Joint ◽  
Case Histories ◽  
Gas Industry ◽  
Root Cause ◽  
The Past ◽  
Cause Of Failure ◽  
Assessment Techniques

Over the course of the past 20 years, methods have been developed for assessing the probability and root cause of bolted joint leakage based on sound engineering assessment techniques. Those methods were incorporated, in part, into ASME PCC-1-2010 Appendix O [7] and provide the only published standard method for establishing bolted joint assembly bolt load. As detailed in previous papers, the method can also be used for troubleshooting joint leakage. This paper addresses a series of actual joint leakage cases, outlines the analysis performed to determine root cause of failure and the actions taken to successfully eliminate future incidents of failure (lessons learned).

DECISION TYPE—A KEY TO REALISING THE POTENTIAL OF DECISION MAKING UNDER UNCERTAINTY

2007 ◽  
Vol 47 (1) ◽  
pp. 309 ◽  
Author(s):  
S.I. Mackie ◽  
S.H. Begg ◽  
C. Smith ◽  
M.B. Welsh
Keyword(s):  
Decision Making ◽  
Real World ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Decision Making Under Uncertainty ◽  
Gas Industry ◽  
The Past ◽  
Decision Outcomes ◽  
Decision Type ◽  
Definition Of

Business underperformance in the upstream oil and gas industry, and the failure of many decisions to return expected results, has led to a growing interest over the past few years in understanding the impacts of decisionmaking tools and processes and their relationship to decision outcomes. A primary observation is that different decision types require different decision-making approaches to achieve optimal outcomes.Optimal decision making relies on understanding the types of decisions being made and tailoring the type of decision with the appropriate tools and processes. Yet the industry lacks both a definition of decision types and any guidelines as to what tools and processes should be used for what decisions types. We argue that maximising the chances of a good outcome in real-world decisions requires the implementation of such tailoring.

Project overruns: why are we still getting it wrong?

2017 ◽  
Vol 57 (2) ◽  
pp. 489
Author(s):  
Gareth D. Lee ◽  
Simon P. Whitaker ◽  
Martin Wilkes
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Project Performance ◽  
Recent Experience ◽  
Considerable Effort ◽  
Gas Industry ◽  
The Past ◽  
Project Outcomes ◽  
Realistic Assessment ◽  
Common Problems

The issue of poor project performance in the oil and gas industry is not new. It has been discussed since the 1980s and, over the past 30 years, there has been considerable effort put into improving project outcomes. As an industry, we have invested heavily in project management and estimating processes to ensure that reliable data are available for investment decisions. However, recent experience in Australia and elsewhere in the world suggests that little real improvement has been made. This presentation critically examines aspects of project performance and decision making by analysing: the commercial impact that recent cost and schedule outcomes have had on Australian projects; common problems associated with setting and managing cost and schedule expectations throughout the project development process; real (anonymous) examples from projects to indicate how biases affect behaviours, decisions and outcomes; and simple ways to build a more realistic assessment of risk and uncertainty into cost and schedule estimates. We conclude by discussing why this is still important for future Australian projects given the days of complex greenfield megaprojects are likely behind us.

Digital innovation in subsea integrity management

2020 ◽  
Vol 60 (1) ◽  
pp. 215
Author(s):  
Ricky Thethi ◽  
Dharmik Vadel ◽  
Mark Haning ◽  
Elizabeth Tellier
Keyword(s):  
Domain Knowledge ◽  
Oil And Gas ◽  
Digital Technologies ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Cost Efficiencies ◽  
Exploration And Production ◽  
Integrity Management ◽  
Offshore Oil And Gas ◽  
Dynamic Structures

Since the 2014 oil-price downturn, the offshore oil and gas industry has accelerated implementation of digital technologies to drive cost efficiencies for exploration and production operations. The upstream offshore sector comprises many interfacing disciplines such as subsurface, drilling and completions, facilities and production operations. Digital initiatives in subsurface imaging, drilling of subsea wells and topsides integrity have been well publicised within the industry. Integrity of the subsea infrastructure is one area that is currently playing catch up in the digital space and lends itself well for data computational efficiencies that artificial-intelligence technologies provide, to reduce cost and lower the risk of subsea equipment downtime. This paper details digital technologies employed in the area of subsea integrity management to meet the objectives of centralising access to critical integrity data, automating workflows to collect and assess data, and using machine learning to perform more accurate and faster engineering analysis with large volumes of field-measured data. A comparison of a typical subsea field is presented using non-digital and digital approaches to subsea integrity management (IM). The comparison demonstrates where technologies such as digital twins for dynamic structures, and auto anomaly detection by using image recognition algorithms can be deployed to provide a step change in the quality of subsea integrity data coming from field. It is demonstrated how the use of a smart IM approach, combined with strong domain knowledge in subsea engineering, can lead to cost efficiencies in operating subsea assets.

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