American Oil and Gas Reporter - November 2017 - 50

SpecialReport: Oil & Gas Computing

Digital Solutions Optimize Operations
By Sean FitzGerald
HOUSTON-Energy companies make
consequential decisions every day that
affect the future of their businesses. Producers take significant risks to find, drill,
complete and produce oil and gas. Midstream companies invest billions to gather,
process and send that energy to market.
While specialized applications can help
to solve specific and complex problems
in the industry, good decision making in
select areas of the business is not enough
to thrive in today's market. Companies
must execute in all areas of the business,
on top-performing projects, with impeccable
timing, and be ready to shift resources as
market conditions change-all while continuing to operate their existing assets.
From upstream operators to pipelines
that deliver products to world markets,
informational value is the most important
commodity throughout the oil and gas
industry. Today, newly embedded devices
and sensors make it easier to collect realtime data at many different touchpoints
throughout the energy value chain, while
cloud storage technologies make it simpler
to store the data. Real value is created
from data when informational context
and associations are made inside and out-

side of an organization. However, making
sense of the data is a complex process.
A GE study on digital technology applications found that only 3-5 percent of
oil and gas equipment is connected digitally,
and less than 1 percent of the data collected
are used for decision making. There is
clearly huge potential for market growth.
Market volatility provides proof that
optimization is needed across the oil and
gas value chain. Companies that leverage
all the digital data available to optimize
business processes will not only survive,
but thrive during market downturns and
dominate the industry on the next upswing.
To remain competitive, agile companies
must make informed, data-driven decisions
by leveraging a variety of computing
tools and methods-from automated operations and intelligent field technology,
to analytics and artificial intelligence.
The variety of applications across the
connected energy value chain share a
common essential objective: extracting
business intelligence from data to make
better and timelier business decisions.
'Connected Intelligence'
The key to optimizing enterprisewide
upstream and midstream operations is
the ability for companies to identify re-

In the modern energy workspace, the cloud and smart devices are making back-office
tasks and field production operations ubiquitous through a unified open-source platform
that automates workflows and integrates people, processes and systems across the entire value chain. The cloud and Internet of Things are hand in glove, allowing integrated
business models to function more effectively.

50 THE AMERICAN OIL & GAS REPORTER

lationships, understand context and analyze
data across the energy value chain as
"connected energy intelligence." Growth
in the Internet of Things, or Internetconnected devices that collect and exchange data, makes connected energy intelligence possible. By leveraging the
data from all areas of the oil and gas
business with IoT and cloud computing-
and bringing them together in new ways
with analytics, big data and machine
learning-these technology components
form the basis for implementing connected
energy intelligence.
The cloud and IoT go hand in hand,
since the former enables the latter. The
cloud delivers scalability on demand,
without the fixed overhead of computing,
storage and communication capacity. The
result is ubiquitous computing, a world
where computing cannot be distinguished
between one thing and the next, or one
decision to the next.
In 2015, nearly half of the drilling rigs
in North America were idled in fewer than
12 months. Decisions were made during
this time that shifted hundreds of billions
of dollars as companies went from drill to
survival mode. When the market shifts
upward, how quickly will the industry be
able to pivot? Cloud computing and IoT
deliver the business agility and insight required by the oil and gas industry to
quickly adapt to changing conditions.
The landscape for cloud and big data
storage technology continues to change
rapidly with new and improved technologies that leverage related software, many
of which are open source. The use of
open-source software makes the adoption
of new big data technology economically
feasible for the oil and gas industry. IoT
involves more than simply deploying data
collectors and collecting information in
the cloud. Companies must also consider
how the data streams will be ingested
and stored for later consumption.
Data ingestion and integration considerations are akin to the midstream
sector of oil and gas. Large, volatile flows
of hydrocarbons must be conditioned and
balanced into steady-flow products to
downstream markets. The technology
strategy must involve communication
protocols, telecommunication limitations,
stream analytics, and system integration.
To satisfy these requirements, cloud platform offerings provide a toolbox of com-



American Oil and Gas Reporter - November 2017

Table of Contents for the Digital Edition of American Oil and Gas Reporter - November 2017

Contents
American Oil and Gas Reporter - November 2017 - 1
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American Oil and Gas Reporter - November 2017 - Contents
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