Energy & Mining International - Winter 2016 - 13

COLUMNS | DECISION-MAKING

Winter 2016

T

he process industries have
been ahead of the curve
on digitization, having
high-value assets digitized
and sending signals back for
the past 30 years. Now, however, the
ability to digitize and track so many
more assets due to lower costs for sensor technology is allowing operators
to push more and more processing out
into the field. This, in turn, is creating
new opportunities for better economies of scale and uncovering new ways
to create stakeholder value.
The pressure brought on by low
commodity prices is actually accelerating, not slowing down, the move to
the connected enterprise. That may
seem surprising, as many assume with
low commodity prices comes severe
IT budget cuts, and certainly many
companies are tightening their belts
across the board. But acceleration is
coming as the digital economy is the
only way companies can sustain the
cuts they have already made and assure
they can reduce their cost base when
commodity prices rebound, which will
eventually happen.

INTEGRATING DATA
Thanks to the emerging digital economy, nearly everything is transmitting data. Sensor-equipped tools and
machinery are delivering continuous
streams of information. Yet data by
itself is meaningless. Having the ability
to collect, store and analyze information in real time so it can be used for
meaningful decision-making is where
the real challenge lies. Fortunately,
technology advancements now exist
that make it possible for anyone to
easily extract and gain insight from all
types of information.
Imagine if you were using predictive
analytics to determine the optimal

point in time to perform asset maintenance and maximize utilization. Now
imagine if you also could integrate business data into this model to determine
the revenue impact of such an activity
on a given day. Operators could decide
not only the optimum asset utilization,
but also the least impact to the company's bottom line from this action.
Real-time plant automation and
software have been around for a long
time to manage production operations
with some level of efficiency and profitability. However, the digital economy
is changing the game by making this real-time connectivity between business
and operations a whole lot easier.

BETTER DECISION-MAKING
Nearly every day, companies are
uncovering new ways to make their
processes more efficient thanks to
data-based insights. Researchers are
currently working on ways for companies to simultaneously analyze
transactional data and real-time data
simultaneously with predictive analytics tools, bringing in the business
impact to operations decisions.
According to industry analyst Peter
Reynolds at ARC Advisory Group, the
convergence of operations and business data and use of predictive analytics already has the greatest impact on:
+ Asset health improvement and
equipment up-time;

+

+ Operating and overall production
performance;
+ Safety and risk management;
+ Logistics optimization;
+ Improvements to the employee
experience; and
+ Business process optimization.
According to a recent report by IDC
Energy Insights, after safety, production management is a top priority for
upstream oil and gas companies, with
a focus on improving margins and
reducing exposure associated with
deferments. Today, solutions exist that
help oil and gas companies improve
and standardize processes, replace
legacy tools and provide a single view
of production across the organization
to improve production operations.
Integrating operational data with
business data also is proving to
significantly improve maintenance
operations. When a piece of equipment
on a remote oil rig, such as blowout
preventers, mud pumps or ship stabilizers, fails unexpectedly, drilling
halts until the necessary repair parts
can be delivered. This downtime can
cost millions of dollars in lost production. Fortunately, it is now possible to
analyze data in real time from multiple
sources and predict when assets will
fail, so it can be serviced just before
causing costly problems. Taken a step
further, the need for maintenance can

Integrating operational data with business data is making a big difference for oil and gas companies.

emi-magazine.com 13


http://www.emi-magazine.com

Table of Contents for the Digital Edition of Energy & Mining International - Winter 2016

Contents
Energy & Mining International - Winter 2016 - Cover1
Energy & Mining International - Winter 2016 - Cover2
Energy & Mining International - Winter 2016 - 1
Energy & Mining International - Winter 2016 - 2
Energy & Mining International - Winter 2016 - Contents
Energy & Mining International - Winter 2016 - 4
Energy & Mining International - Winter 2016 - 5
Energy & Mining International - Winter 2016 - 6
Energy & Mining International - Winter 2016 - 7
Energy & Mining International - Winter 2016 - 8
Energy & Mining International - Winter 2016 - 9
Energy & Mining International - Winter 2016 - 10
Energy & Mining International - Winter 2016 - 11
Energy & Mining International - Winter 2016 - 12
Energy & Mining International - Winter 2016 - 13
Energy & Mining International - Winter 2016 - 14
Energy & Mining International - Winter 2016 - 15
Energy & Mining International - Winter 2016 - 16
Energy & Mining International - Winter 2016 - 17
Energy & Mining International - Winter 2016 - 18
Energy & Mining International - Winter 2016 - 19
Energy & Mining International - Winter 2016 - 20
Energy & Mining International - Winter 2016 - 21
Energy & Mining International - Winter 2016 - 22
Energy & Mining International - Winter 2016 - 23
Energy & Mining International - Winter 2016 - 24
Energy & Mining International - Winter 2016 - 25
Energy & Mining International - Winter 2016 - 26
Energy & Mining International - Winter 2016 - 27
Energy & Mining International - Winter 2016 - 28
Energy & Mining International - Winter 2016 - 29
Energy & Mining International - Winter 2016 - 30
Energy & Mining International - Winter 2016 - 31
Energy & Mining International - Winter 2016 - 32
Energy & Mining International - Winter 2016 - 33
Energy & Mining International - Winter 2016 - 34
Energy & Mining International - Winter 2016 - 35
Energy & Mining International - Winter 2016 - 36
Energy & Mining International - Winter 2016 - 37
Energy & Mining International - Winter 2016 - 38
Energy & Mining International - Winter 2016 - 39
Energy & Mining International - Winter 2016 - 40
Energy & Mining International - Winter 2016 - 41
Energy & Mining International - Winter 2016 - 42
Energy & Mining International - Winter 2016 - 43
Energy & Mining International - Winter 2016 - 44
Energy & Mining International - Winter 2016 - 45
Energy & Mining International - Winter 2016 - 46
Energy & Mining International - Winter 2016 - 47
Energy & Mining International - Winter 2016 - 48
Energy & Mining International - Winter 2016 - 49
Energy & Mining International - Winter 2016 - 50
Energy & Mining International - Winter 2016 - 51
Energy & Mining International - Winter 2016 - 52
Energy & Mining International - Winter 2016 - 53
Energy & Mining International - Winter 2016 - 54
Energy & Mining International - Winter 2016 - 55
Energy & Mining International - Winter 2016 - 56
Energy & Mining International - Winter 2016 - 57
Energy & Mining International - Winter 2016 - 58
Energy & Mining International - Winter 2016 - 59
Energy & Mining International - Winter 2016 - 60
Energy & Mining International - Winter 2016 - 61
Energy & Mining International - Winter 2016 - 62
Energy & Mining International - Winter 2016 - 63
Energy & Mining International - Winter 2016 - 64
Energy & Mining International - Winter 2016 - 65
Energy & Mining International - Winter 2016 - 66
Energy & Mining International - Winter 2016 - 67
Energy & Mining International - Winter 2016 - 68
Energy & Mining International - Winter 2016 - 69
Energy & Mining International - Winter 2016 - 70
Energy & Mining International - Winter 2016 - 71
Energy & Mining International - Winter 2016 - 72
Energy & Mining International - Winter 2016 - 73
Energy & Mining International - Winter 2016 - 74
Energy & Mining International - Winter 2016 - 75
Energy & Mining International - Winter 2016 - 76
Energy & Mining International - Winter 2016 - 77
Energy & Mining International - Winter 2016 - 78
Energy & Mining International - Winter 2016 - 79
Energy & Mining International - Winter 2016 - 80
Energy & Mining International - Winter 2016 - Cover3
Energy & Mining International - Winter 2016 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue4
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue3ab
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol17issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue3
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue2
http://www.nxtbook.com/nxtbooks/knighthouse/emi_vol16issue1
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/emi_2016fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2015winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2014winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013_summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2013winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fallwinter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012fall
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012summer
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012spring
http://www.nxtbook.com/nxtbooks/phoenix/emi_2012winter
http://www.nxtbook.com/nxtbooks/phoenix/emi_2011fall
http://www.nxtbook.com/nxtbooks/businessmedia/emi_20110607
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011summer
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011spring
http://www.nxtbook.com/nxtbooks/businessmedia/emi_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010fall
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010summer
http://www.nxtbook.com/nxtbooks/businessmedia/ep_2010spring
http://www.nxtbook.com/nxtbooks/schofield/ep_2009winter
http://www.nxtbook.com/nxtbooks/schofield/ep_2009fall
http://www.nxtbookMEDIA.com