What does the successful oil and gas company of the future look like, as oil and gas continue to shoulder of the burden of the world’s energy needs?
That was the question addressed by Mohammed Y. Al-Qahtani, Saudi Aramco’s SVP Upstream, in a keynote address at BHGE’s Annual Meeting held in Florence on 28 January, where the challenge of meeting the growing global energy requirement while reducing the industry’s carbon footprint was a major theme.
The energy company of the future needs to be smarter, Al-Qahtani said. “Not solely in terms of technology and developing and promoting cleaner oil products – we also have to improve our image. A successful energy company of the future must be seen as a positive contributor, focused not only on shareholders but on a broader group of stakeholders, from consumers and employers to suppliers, government regulators and communities.
“It goes without saying that we must be actively committed to delivering technologies that reduce the GHG footprint of hydrocarbons. But we must also better communicate the actions we are taking and the progress we are making. “
Al Qahtani highlighted Saudi Aramco’s involvement in the Oil & Gas Climate Initiative and its work on CCUS and reducing methane emissions and flaring.
“More recently Saudi Aramco has been recognised for the lowest upstream carbon intensity in the world,” he added.
“When we better engage the public we can correct misperceptions that our industry is part of the problem for climate change, and help them realise that we are a big part of the solution."
A successful energy company will be a successful technology company, he went on.
“Our industry has no alternative but to be at the centre of the fourth industrial revolution. We have within our reach digital technologies that are turning science fiction into science fact. Tools like artificial intelligence, the Internet of Things, robotics, big data, analytics and many others. Our Uthmaniya gas plant has become a leader in the use of advanced analytics and artificial intelligence solutions. This has helped us cut inspection times by 90 per cent, reduce costs and improve safety.
“As an industry, we have massive amounts of data. By applying technologies to data we are already generating, we can change the game. In exploration, for instance, machine learning and AI can sift through vast amounts of 3D and 4D seismic data to extract features invisible to the human eye. In drilling, we should settle for nothing short of fully automated drilling rigs to increase performance, safety and efficiency. “
A lack of investment due to market conditions is holding the industry back, he commented. “We must reverse this trend because lagging investment is the single biggest threat to our future success.”
Al Qahtani also highlighted the need for greater collaboration.
“Innovation comes from looking beyond our industry’s boundaries, in collaboration, not isolation. Breakthroughs come when we blur the lines in fields like digitalisation, nanotechnologies, space science, quantum computing, robotics and big data. Whether it’s a full-scale test deployment with a leading robotics company or a simple collaboration with a university on a difficult algorithm, we have an opportunity to transform our industry by working together.”
A successful energy company will build and exploit a competitive advantage, he added.
“We know technology is a differentiator, but it is not the only one,” he said, adding that a focus on areas such as efficiency and service could also create a competitive advantage.
“There are still ripe prospects ahead of our industry, but the environment will be challenging and only the best will thrive,” he concluded.
“If we rekindle our passion for advanced technology, commit to the investments needed to expand supply, unlock new values and find competitive advantage, and if we continue to develop lower carbon, cleaner oil and gas technologies, then an uncertain and ambiguous future is a stone from which we will carve a stronger future, that will grow and remain profitable for generations to come.”
