Abstract
This Energy Insights report presents the opportunities and challenges for
business process improvement in the exploration and production (E&P) industry
through digital oilfield initiatives. A brief introduction to the digital
oilfield is followed by discussions on different industry perspectives to the
applicability of digital oilfield concepts. Oil and gas company management
challenges and emerging technologies are explored. Key vendor strategies and
success factors determining the adoption of technology under the digital
oilfield umbrella are highlighted. Future challenges, adoption patterns, market
trends, and potential pitfalls are examined. The report also provides
recommendations and guidance for business and IT executives. The digital
oilfield aims at deploying software, hardware, instrumentation, communications,
and technology services to optimize production, enhance recovery, and integrate
significant engineering and business processes within and across upstream,
midstream, and downstream operations.
According to Sekhar Venkat, research manager, Energy Upstream Strategies, "Two
key factors will determine the success of emerging digital technologies. First,
successful pilot projects that achieve benchmark reservoir recoverability and
production optimization goals could result in adoption of applicable solutions
to other E&P projects. Second, the ability of vendors to minimize the total
cost of software, hardware, and services and simultaneously achieve business
performance improvement goals would alleviate the risk averseness of E&P
companies. While increased E&P budgets are beginning to translate into IT
spending, this spending is still contingent upon long-term global economic
growth patterns."
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