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Enhancing productivity, efficiency and sustainability through digital transformation

Technology

Digitisation is key to future-proofing the oil and gas industry and realising sustainability goals, say Alaa Elshimy, managing director and senior vice president of Enterprise Business Group, Huawei Middle East, and Lv Gongxun, senior consultant, Global Energy Business Unit of Enterprise BG, Huawei; former vice president, PetroChina, CNPC

Global dual-carbon goals are bringing about change not only in energy but also in the economic structure of energy-producing nations. They are driving changes in production technologies and lifestyles. They are also having a profound impact on the oil and gas industry and are bound to trigger structural reforms on both supply and demand, propelling the industry's transformation and development. 

According to the BP Energy Outlook 2020, global demand for primary energy will only continue to grow, and oil and gas will remain the primary energy source until 2035. Although the share of oil and gas consumption in all energy sources will decrease after that point, the total volume will remain relatively stable. We are confident about the future of the oil and gas industry.

Addressing the challenges

At the same time, we should be aware that oil and gas companies still face significant challenges. First, in the context of the dual carbon goals, companies need to produce more energy at lower costs while reducing carbon emissions. Second, oil and gas exploration targets are becoming increasingly difficult to achieve with proven resources often falling short. Third, newly discovered oil and gas reserves are difficult to produce, which requires advanced exploitation technology. Fourth, in the medium and long term, the global oil and gas supply is already relatively sufficient, which means the low and median oil prices will remain.

Digital transformation is inevitable if the industry is to address these challenges efficiently and sustainably. Realising such change brings significant opportunities to oil and gas companies. Digital transformation can drive the reconstruction of business and management models and can facilitate the innovation of new models entirely. Ultimately, digitisation can help oil and gas companies evolve and increase value.

The oil and gas industry needs to further integrate digital technologies and fully realise its digital transformation goals to boost reserves and production, improve quality and efficiency, and reduce carbon emissions.

The industry has several requirements to enable this transition. Transformation necessitates a full-stack cloud platform, which can help energy companies migrate key business processes to the cloud and gain intelligence. Effective data governance is also needed. Data generated by the industry is high in volume and complexity. Therefore, a unified data lake is indispensable to support data sharing and smart Big Data analysis. 

Furthermore, digital transformation requires a device-edge-cloud intelligent production system, where production data is collected from devices, and intelligent management and control of production is implemented on the cloud. Finally, strong service assurance is essential to achieve digital transformation. It is paramount to have a professional service team that understands both the industry and digitalisation to realise these objectives.

The digital and intelligent development of the global oil and gas industry is still in its infancy. The key fields being explored in the industry include smart exploration, smart oil and gas fields, smart pipe networks, Smart Refining and Chemicals, and smart sales. 

Huawei at ADIPEC

Huawei will host the Global Oil & Gas summit at ADIPEC 2021 under the theme of "Drive Data to Barrel, Embrace Intelligence to Grow", where they will share the best practices for global leadership in digital transformation. Huawei will demonstrate how they plan to support oil and gas companies' digital transformation strategies and integrate digital technologies into core oil and gas business processes. In detail, Huawei will share the ins and outs of migrating oil and gas to the cloud, AI in E&P, computing power increase reserves and production solutions, digital and intelligent oil and gas fields, and more. 

Oil and gas companies and Huawei share a common dream: to bring digital to the energy sector and build intelligent energy with all things connected. 

To learn more about Huawei's solutions for the oil and gas industry, check out Huawei's Global Oil & Gas summit at ADIPEC, Abu Dhabi from 15 -18 November. Also at booth No. 3220, Hall 3, ADNEC, Huawei will showcase some of the most significant powerful emerging technologies in the oil & gas industry, sharing innovative new ideas and ways to use digital technologies reimagine energy systems.

Learn more at ADIPEC and Huawei Global Oil & Gas Summit 2021 https://e.huawei.com/topic/2021-event-oil-gas-summit/en/index.html 

The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. (Image source: Adobe Stock)

SmartMaster can be used with a range of ABB and third-party instruments. (Image source: ABB)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

ARO Drilling and IMI announce first Kingdom jack up rig (Image source: ARO)

Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

Michael Monica, director sales, marketing and customer care at GPT Industries signs the agreement with Mohamed Altaf, sale manager, Abdulla Fouad Energy Services. (Image source: Alain Charles Publishing)

Amin H. Nasser, CEO of Aramco. (Image source: Aramco)

The system can activate notification and hazard mitigation equipment to notify workers and safeguard facilities. (Image source: MSA Safety)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

The new discoveries will bolster Aramco’s strategy to increase gas production by more than half over 2021 levels, through 2030. (Image source: Adobe Stock)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

Source: SafeStart

The new technology is designed to address the challenging conditions in unconventional wells. (Image source: Adobe Stock)

The Ampelmann A-type enabling safe offshore access in the Middle East. (Image source: Ampelmann)

Aramco has produced the first unconventional tight gas from its South Ghawar operational area ahead of schedule. (Image source: Adobe Stock)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

TotalEnergies and SONATRACH will develop gas resources in Algeria's north-east Timimoun region, (Image source: Adobe Stock).

By using analytics to augment and empower the workforce, pipeline operators can optimise operations and improve asset availability. (Image source: Adobe Stock)

The oil price is hovering around the US$90/bbl mark. (Image source: Adobe Stock)

The Craig International Qatar team. (Image source: Craig International)

The SuperFill II diverter reduces induced surge pressure. (Image source: Halliburton)

Among other services, KBR will offer proprietary equipment for NCIC's 1,200 metric tonnes per day ammonia plant. (Image source: Adobe Stock)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

ADNOC Gas recorded robust financial and operational results in 2023. (Image source: Adobe Stock)

Over 4,000 km of SoluForce pipe has been installed around the world. (Image source: SoluForce)

Block 56 is targeted for commercialisation in 2024. (Image source: Canva)

The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

Source: SafeStart

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

The company is well positioned in 2024, with a reshaped and resilient business and a strong balance sheet. (Image source: Adobe Stock)

The vessel addresses the growing demand for accurate hydrographic data. (Image source: Fugro)

The virtual inhouse seismic processing centre will allow each of the decentralised business units of Wintershall Dea globally to collaborate efficiently and directly with DUG. (Image source: Adobe Stock)