Opinion

Frost & Sullivan: Blockchain, AI Technologies to Increase Upstream Operational Efficiency

Posted by OilVoice Press - OilVoice

10-Aug-2018


Frost & Sullivan Identifies the Top 5 Industry Shifts Fueling the Future of Drilling Systems

Blockchain, AI Technologies to Increase Upstream Operational Efficiency

SANTA CLARA, Calif. – Frost & Sullivan's recent analysis, The Future of Drilling Systems, highlights the rise of disruptive technologies such as blockchain, additive manufacturing, and Artificial Intelligence (AI) and how they are setting the stage for large-scale gains in operational and cost efficiencies in the drilling sector. Intelligent, automated drilling systems demonstrably have a huge impact on the drilling rig count and cost per well drilled as they require fewer on-site workers and boost the efficiency of people still on location. In addition, these systems proactively conduct maintenance to decrease non-productive time (NPT) and critical failures.

The analysis also provides an overview of emerging technology areas, industry shifts, company profiles, and resulting business model transformations in drilling activities through 2025. It presents clients with a holistic, directional analysis of the drilling ecosystem, with a focus on onshore operations. 

For further information on this analysis, please contact me.

"Next-generation automated drilling systems can drastically reduce the time spent on reporting, record keeping, and compliance by integrating technologies such as advanced computing, advanced sensors, and computer vision,” said Chirag Rathi, Energy & Environment Consulting Director at Frost & Sullivan. "While roboticswill leverage sensors and digital twins, blockchain can aid in parts ordering and logistics. Similarly, additive manufacturing can help create parts, augmented reality(AR) can handle maintenance, and the whole system can be coordinated through cognitive computing." 

The new upstream methods are expectedly triggering novel business models and altering the value chain. For instance, contractors and service providers are consolidating vertically to expand their offerings to provide proprietary, all-in-one solutions. In due time, legacy rig fleets will be rationalized and integrated across a holistic automation platform, which, in turn, will stoke industry demand for opensystems architecture

"The rising relevance of digitally enabled business models will coincide with the increasing importance of data in influencing procurement decisions. The net result will be a highly transparent and quantifiable value chain," noted Rathi. "The greatest industry impact will be felt when an AI-driven platform that automates procurement across all drilling and support activities emerges as a trusted, secure, third-party application encompassing the entire drilling ecosystem." 

The drilling industry is clearly in the midst of a digital transformation. Among the numerous big and small industry shifts, the five that stand out are:

  1. Data-driven decision making: As actionable data replaces human judgment, Big Data analytics combined with machine learning and other AI techniques will enable smarter automation, streamlined workflows, and optimized supply chains for higher operational efficiencies.
  2. Shifting workforce composition: An aging workforce will be replaced by digital natives, prompting enthusiastic adoption of digital solutions.
  3. Digitally enabled business models: Upstream will move beyond fixed day-rate models as operators peg rates against micro-fluctuations in a range of benchmarks. This will promote data-validated performance over other contracting considerations such as brand or relationship history.
  4. Accelerating pace of innovation: The push for open systems architecture will fuel innovation-based competition.
  5. Value chain disruptions: Operators are acquiring suppliers to lower costs. Eventually, they may take over drilling responsibilities due to the potential of automation to diminish costs and liability risks.

BlockchainTechnologyupstreamDrillingFrist & Sullivan

More items from oilvoice


President XI Likely to Keep Crude Tariffs Sidelined

Although there is no off-ramp in sight for the trade war between the U.S. and China, stability and energy security are more important for the Chinese leadership than the need to ‘win' the trade war with the U.S., according to ESAI Energy's latest ChinaWatch report.  The first version of the $16 ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > ESAIESAI EnergyChina +7

Export Infrastructure to Strand U.S. LPG This Winter

The growth of U.S. LPG exports will outpace terminal capacity this winter, constraining LPG exports, according to ESAI Energy's webinar U.S. Growing Pains to Upend LPG Trade & Demand. The export constraint will temporarily cause scarcity in Asia and the international market, driving up LPG prices ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > exportUnited StatesLPG +4

Bass Oil: Onshore Indonesian Oil Operations Update – July 2018

Highlights Continuing high monthly average oil price of US$68.52 realised on sales from theCompany's 55%-owned Tangai-Sukananti oil field in onshore Sumatra, Indonesia July production volumes totalled 11,350 barrels of oil (JV share) or 6,243 barrels (net to Bass) July oil sales ...

OilVoice Press - OilVoice


Posted 2 days agoPress > Bass OilonshoreIndonesia +5

SDX Energy - Successful Production Test at SD-3X Well, Egypt

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that a successful production test has been conducted at its SD-3X appraisal well at South Disouq, Egypt (SDX 55% working interest and operator). The well flowed at a maximum rate of 16.1 MMsc ...

OilVoice Press - OilVoice


Posted 2 days agoPress > SDX EnergyEgyptProduction +4

Santos: PNG LNG Signs Mid-Term Sales Agreement With BP Singapore

Santos advises that the PNG LNG Project co-venturers have entered into a mid-term LNG sale and purchase agreement (SPA) with BP Singapore Pte. Limited (BPS), for the supply of LNG commencing in August 2018. The mid-term SPA is for supply of approximately 0.45 million tonnes of liquefied natural ga ...

OilVoice Press - OilVoice


Posted 2 days agoPress > SantosPNGPapua New Guinea +6
All posts from oilvoice