American Oil and Gas Reporter - April 2018 - 43

SHAPING TOMORROW'S TECHNOLOGY
Data Drive Modern Energy Workplace
By Dan Wallin
HOUSTON-Supply and demand trends,
alternative power developments and new
competitive markets are propelling the energy industry into a volatile state. The
rapid changes and market-related pressures
facing the industry today are different
from previous cycles and supercycles.
Commodity price volatility is ongoing,
the competitive landscape has expanded,
and the next generation of job seekers is
entering the energy workforce with new
skills and expectations. These forces are
following unpredictable patterns as people,
companies and governments struggle to
establish new behavior, business, cultural
and regulatory models to suit changing
socioeconomic and geopolitical realities.
As energy markets adapt to the "new
normal," the need for cost-saving efficiencies and margin improvements has never
been greater. Organizations must create
pre-emptive strategies to improve their
ability to adapt. As a result, a convergence
of industry and technological forces has
produced both new challenges and new
opportunities for energy companies.
Continuous Digital Transformation
Three major trends are driving energy
companies to reconsider how they do
business:
* Improving business agility;
* Increasing operational efficiency;
and
* A changing workforce.
Meanwhile, four core digital technologies-the cloud, mobile, the Internet of
Things (IoT), and big data and analytics-
are helping companies address these challenges through digital transformation.
"(Over the next decade,) digitalization
has the potential to create around $1 trillion
of value for oil and gas firms," says a
report by the World Economic Forum.
Yet, digitalization is not a final destination,
but rather a constant evolution that requires
companies to remain nimble and to continue
to adapt to new ways of conducting business.
Considering the unpredictable nature of
the energy industry, it is especially necessary
for oil and gas companies to embrace the
ongoing transformation.
In 2017, Gartner Inc. reported that 79
percent of top-performing chief informa-

tion officers participated in digital ecosystems, compared with 24 percent for trailing
performers. If analysts predict this new
reality is the only assured constant, then
digitalization is the only avenue built to
accommodate today's "new-normal" era
of energy and drive more efficient processes to conduct business.
To capitalize on the opportunities
brought about through change, and to remain competitive in the new-normal era,
oil and gas companies must continue to
embrace digital transformation by adopting
the modern energy workplace.
When undertaken successfully, the modern energy workplace is the result of coordinating and fusing strategy, culture and
the technologies necessary to ensure that
digital transformation efforts don't fail, and
that value is captured through improvements
to efficiency and productivity, risk mitigation,
and attracting and retaining top talent.
As Julian Phillips, executive vice president of Whitlock points out, "We are
continuing to see the intersection of hardware, software, environment and culture
play a vital role in successful business
transformation strategies, and the energy
sector is no different. Whitlock and Quorum are working together with Microsoft
to accelerate the adoption of the modern
energy workplace with a unique blend of

highly collaborative software, hardware
and physical workspaces."
The modern energy workplace supports
new and improved methods of collaboration,
which bring greater efficiency to the entire
energy value chain. This includes connecting
individuals regardless of their locations by
using any modern devices, such as the Microsoft Surface Hub or other tablets, personal
computers and smartphones. The ability
to leverage these powerful tools means
operational data are with users wherever
they go, as is the ability to make informed
decisions from those data.
Changing Workforce
Another reality that is quickly forcing
energy companies to adapt is a changing
workforce. According to data compiled by
Houston-based consulting firm Graves &
Co., as of Feb. 10, 2017, more than 441,000
oil and gas layoffs had occurred globally.
In addition to the dramatic changes in
the demographics of the energy workforce,
young professionals have different expectations for workplace culture and environment than previous generations. The
new workforce desires meaningful work
and a workplace built on a culture of collaboration and a spirit of innovation.
The next generation of workers also
is equipped with a different skill set than

Cloud computing, mobile devices, the Internet of Things and analytics are among the
technologies revolutionizing workflows in upstream oil and gas. With the energy value
creation chain depending on accurate and prompt data, it makes sense that the
technology most commonly adopted by oil and gas companies is mobile. Data captured
by mobile technology better connects the office with the field, and the ability to
immediately store, share and act on those data drives new capabilities in user efficiency,
productivity, collaboration and decision making.

APRIL 2018 43



American Oil and Gas Reporter - April 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2018

Contents
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