Download Ascent Look Out 2016+ PDF
Share On LinkedIn Twitter Google Facebook
Market Views
Oil and Gas
Market Views

## Highlights

- Lower prices and shrinking margins
- High maintenance, exploration & production costs
- Moderate energy demands across ASEAN and India
- Environmental impact & public confidence pressures
- Middle East has 67% world’s oil reserves
- Middle East has 45% of all natural gas reserves
- 25% of companies will use advanced analytics by 2019
- Top 50% investing in oilfield operations automation

## Digital Journey

CUSTOMER EXPERIENCE
  Always connected, B2C customers are demanding a new experience. Fickle and quick to switch loyalties, they want ultra-personalized and simple interactions with the brand, at the very moment they need it. Downstream, they are addressing the growing demand for electricity as mainstream fuel.
BUSINESS REINVENTION
  Meeting the current industry challenges means seizing new opportunities. To find new ways of creating value and to open up new revenue streams, companies are building an ecosystem that stretches beyond traditional boundaries, including both customers and cross-sectoral partnerships.
OPERATIONAL EXCELLENCE
  Every oil company finds itself operating under immense pressure, urgently needing to reduce cost to combat shrinking margins and higher discovery and development costs. They must also increase agility to quickly adapt to new economic environments.
TRUST AND COMPLIANCE
  No other industry sector comes under as intense critical public scrutiny as oil and gas. Companies must protect customer data and shield essential resources from the threat of cyber-attacks while responding to increasing regulatory reporting obligations in a timely and transparent fashion.

#### Alpha Baro

Vice President Oil & Gas

> To win business in this very complex, competitive and volatile landscape, oil and gas companies must turn their growing volume and variety of customer data into actionable insight on the diverse expectations and behaviors of their different types of customers.

Technologies in the Digital Journey
Technology | x | y | x (phone) | y (phone) | Impact | Range | Section | Keys | Description
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
Augmented reality | 90 | 45 | 90 | 31 | Early Adoption | 2018 | Low | experience | By providing workers with immediate access to more and better information – from asset lifecycle management to production analysis – augmented reality delivered through smart glasses allows more to be done by one individual. Embedded cameras relay pictures back to base to record activities or to allow less highly qualified staff in the field to tap into the expertise of centrally-located experts. This allows companies to make better use of scarce expertise.
3D printing | 70 | 38 | 85 | 23 | Early Adoption | 2018 | Medium | excellence | Every sector – exploration, production, refineries, petrochemical plants and gas stations – is benefiting from modern 3D printing technology. It’s particularly important in the field, specifically offshore. When a critical piece of equipment fails, maintenance engineers no longer have to wait to set to work repairing the affected machinery. The new part is now available in next to no time, eliminating the cost of ordering, shipping and downtime.
5G networks | 37 | 40 | 60 | 33 | Emerging | 2019+ | High | experience,excellence | Soon all data will simply be sent over a combination of the pervasive 5G and Low-Power Wide-Area Networks (LPWAN). The deep insight offered helps enhance the safety of offshore engineers, ensure the security of infrastructure and maximize productivity, amongst other things.
Advanced data visualization | 59 | 47 | 65 | 68 | Adolescent | 2018 | Medium | excellence | 3D visualization technologies provide a real-time immersive picture of the well that can be shared remotely.
Autonomous vehicles | 81 | 22 | 78 | 35 | Early Adoption | 2017 | Medium | trust | Oil and gas companies need to ensure the safety and security of their vast infrastructure. With assets spread far and wide, unmanned aerial vehicles (UAVs) have relieved engineers of hazardous, time-consuming and costly field data reading activities. More than that, these ‘drones’ can monitor movements around pipelines and facilities, highlight activities – such as public works or a fire – close to sensitive pipelines. They can also pinpoint the source of a leak or other pollution far quicker than any human could and provide a permanent view of offshore platforms. Onboard cameras relay videos and photos back to base, while sensors gather data on the environment.
Cloud Service Integration | 45 | 26 | 34 | 41 | Adolescent | 2018 | High | excellence | Cloud-enabled integrated manufacturing is bridging the gap between up-, mid- and downstream operations. Cloud Service Integration (CSI) ensures tight integration between various cloud services. For instance, CSI is helping gas companies optimize extraction by enabling tight integration between the gas turbine manufacturer’s PLM cloud service, a company’s own private asset management cloud service and a sub-surface analysis cloud service.
Context-rich systems | 49 | 30 | 69 | 60 | Early Adoption | 2017 | Medium | experience | By bringing together insight on the wider context, context-rich systems in tandem with advanced analytics, help companies ensure they deliver the personalized interaction today’s customers demand.
Distributed analytics | 58 | 26 | 78 | 18 | Early Adoption | 2018 | High | business,excellence | Distributed analytics helps companies optimize production yield by analyzing data from the well head, in the field and other remote locations in real time. They help reduce leakage by combining and analyzing data gathered from sensors deployed throughout the production chain in real time, for instance.
Edge computing | 65 | 20 | 35 | 49 | Early Adoption | 2017 | High | excellence | Upstream, edge computing is adding intelligence to equipment. Critical production decisions are well-informed and can be made quickly.
High performance computing | 61 | 5 | 25 | 14 | Early Adoption | 2017 | Transformational | business,excellence | With actionable real-time intelligence now crucial for helping oil and gas companies not only survive, but thrive, high performance computing is able to process the vast volumes of real-time and historical data that is now available. Seismic imaging, for example, relies on HPC to process data on how acoustic waves propagate and reflect through the subsurface to determine the possible presence of hydrocarbon accumulations. These simulations enable companies to predict whether oil wells will fulfill expectations more accurately before drilling begins.
Hybrid cloud | 91 | 19 | 75 | 77 | Early Adoption | 2016 | Low | experience | Cloud computing is helping oil and gas companies ensure data is accessible whenever and wherever it’s needed, improving mobility and flexibility. Sensitive data, such as prospecting intelligence, is stored in private clouds. Hybrid clouds then allow companies to combine their sensitive data with classified data, such as the contact information for local associates.
Innovation value webs | 74 | 33 | 64 | 65 | Adolescent | 2017 | Medium | business | With oil and gas companies building partnerships and alliances beyond traditional borders, innovation value webs are enhancing collaboration and communication across the wider partner ecosystem. Their new social business tools are also encouraging deeper cooperation between the multi-skill teams that are organized in collaborative working environments for looking after a series of fields.
Internet of Things | 65 | 5 | 45 | 11 | Early Adoption | 2017 | Transformational | business | By exploiting data from predictive models – such as weather – along with production data, data from smart embedded sensors and engineers’ wearables and a wealth of broader information sources, the Internet of Things (IoT) provides oil and gas companies with a rich picture of the environment out in the field.
LPWAN | 84 | 58 | 85 | 66 | Adolescent | 2018 | Low | excellence | Soon all data will simply be sent over a combination of the pervasive 5G and Low-Power Wide-Area Networks (LPWAN). The deep insight offered helps enhance the safety of offshore engineers, ensure the security of infrastructure and maximize productivity, amongst other things.
Machine-to-machine | 84 | 10 | 58 | 34 | Mainstream | 2016 | High | excellence | Breakdowns are few and far between these days. Smart, data-driven prescriptive maintenance programs are helping to maximize the effective lifecycle of aging upstream and midstream assets, while improving tool reliability and cutting maintenance cost. Machine-to-machine (M2M) technology connects assets, continually transmitting diagnostic data from machinery in the field, at wells or in refineries to an intelligent system in the remote control center.
Prescriptive analytics | 47 | 34 | 44 | 53 | Adolescent | 2018 | High | excellence | Companies are increasingly leveraging smart, data-driven prescriptive analytics to optimize operations up-, mid- and downstream. Downstream, prescriptive analytics not only helps companies predict market demand and align per barrel production cost against the current and foreseeable future of crude oil price, it can also suggest how, when and where production needs to be stepped up.
Privacy-enhancing technologies | 51 | 26 | 53 | 30 | Adolescent | 2018 | High | trust | With the oil and gas industry under such intense scrutiny privacy-enhancing technologies are helping control the disclosure of customer data. They help companies manage privacy risk by ensuring compliance with data protection legislation and regulation.
Self-adaptive security | 55 | 30 | 58 | 39 | Adolescent | 2018 | High | trust | Contextual dynamic access control enabled by self-adaptive security provides companies, customers and partners with access to information and systems only when needed, shielding essential resources from the threat of cyber-attacks while raising levels of privacy protection.
Semantic technologies | 65 | 48 | 72 | 54 | Adolescent | 2018 | Medium | excellence | Distributed analytics also has a role to play in reducing power consumption in midstream operations. It provides refinery managers with an overall analysis of power usage across the refinery equipment that they can then drill down into. Behind the scenes semantic technologies help these intelligent systems understand the relationships within and across data.
Sentiment analytics | 94 | 12 | 89 | 36 | Mainstream | 2016 | Low | experience | As oil and gas companies looking to address massive environmental and public confidence pressures are turning to advanced social media analytics with its sentiment analytics to determine what people feel about their brands and quickly address any reputation-damaging sentiment.
Streaming analytics | 76 | 16 | 71 | 30 | Early Adoption | 2017 | High | business,excellence | A few years from now and you will find oil and gas companies well into their Big Data revolution, dependent on the timeliness and quality of intelligence for production, refinement and commercialization of oil and gas. Advanced analytics play a vital role in ensuring safety and profitability. Streaming analytics, for example, allows companies to extract intelligence in real time so they can act rapidly. By immediately analyzing data coming from a pump at the wells it provides production engineers with actionable insight in next to no time – insight into any sudden drop in production that might prevent the well reaching its target daily production, for example.
Wearable computing | 70 | 15 | 49 | 35 | Early Adoption | 2017 | High | excellence | Well engineers access vital information hands-free through modern wearables – including smart glasses, bracelets and sensors embedded in clothing – improving productivity and safety. Sensors can send information on the engineer, their actions and the local environment back to a remote control center.

Radar View

BUSINESS IMPACT
FILTERS
Burning
Maturing
Mainstream
Early Adoption
Adolescent
Emerging
Primary area
Secondary area
Primary area
Secondary area
Primary impact domain
for trend
Secondary impact domain
for trend
Click on the radar points to see technologies details
Click on the radar points to see technologies details
BUSINESS IMPACT
Customize the radar view

Mainstream
Early Adoption
Adolescent
Emerging
Primary impact domain
for trend
Secondary impact domain
for trend
2016
2017
2018
2019
2019+
Burning
Maturing
Emerging
Low
Medium
High
Transformational
Socio-Cultural
Economic
Political
Highlights
Key Market Challenges
CUSTOMER
EXPERIENCE
BUSINESS
REINVENTION
OPERATIONAL
EXCELLENCE
TRUST AND
COMPLIANCE
Read more
«

»
Top
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More