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Accelerating the oil and gas IIoT journey

Accelerating the oil and gas IIoT journey

Asset utilization is one of the driving forces of revenue generation in the oil and gas industry, which is facing a complex set of challenges. The industry will be forced to make significant operational changes if it is to remain economically viable in this low price environment.

Increasing asset utilization is a critical area for the sector’s transformation. Improving utilization rates offers significant opportunities to lower costs and drive efficiency. Whether the aim is to increase production in the oil field or boost throughput in the refinery, improved asset utilization is a key goal for any technology investment in oil and gas.

A comparison of average annual return on operational assets shows that compared to its industry peers, oil and gas lags far behind.

EY - Average annual return on operational assets

IIoT: informing impactful decisions with real-time information

What types of digital investment make the most sense for oil and gas companies, and where should these investments be focused? Just as asset utilization and uptime are critical drivers of profitability, maintenance and unplanned downtime are serious drains to a company’s bottom line.

Optimizing asset uptime while streamlining maintenance activities requires having access to accurate, detailed and timely information — the kind that comes from the promise of the Industrial Internet.

Using IIoT to connect assets, people and processes

While the oil and gas industry connects every continent and time zone around the world, many oil and gas companies still conduct their major operational processes in unconnected islands of activity. A company’s demand-and-supply planning activities often take place with limited forecasting accuracy, limited integration with process improvements and lack of insight into market structure and positioning.

We believe the connectivity gains promised by the IIoT can help streamline and simplify today’s fragmented and globally distributed oil and gas supply chain, just as it has done for other industries who are further along the adoption curve.

To achieve the full benefits of digital transformation, companies will have to build their capabilities along a maturity curve that begins with connecting operations, moves to connecting the value chain and finally, builds a fully connected enterprise.

EY - Industrial internet of things

Moving up the adoption curve

What will the digital oil field of the future look like, and how will today’s oil and gas companies get there? We believe that technology adoption will follow three major phases or stages, each building on the previous one and patterned after the well-known maturity curve approach.

  • Connecting assets and operations.
    The initial two phases focus on connecting field assets and equipment to the Industrial Internet through the use of sensors that provide automated monitoring and diagnostics. Through the creation of a cloud and IT environment that can store and analyze incoming data from critical assets, the company begins to build real-time and predictive insights on the operation of individual assets and whole processes comprising multiple pieces of equipment.

  • Connecting the value chain.
    The next phase of creating a digitally connected oil and gas enterprise centers on connecting operations to both the internal and the extended value chain, which includes transportation, terminals and warehouses. Such interconnectivity must include automated ordering and logistics functions enabled by real-time tracking and predictive analytics of asset performance in the field.

  • Connecting across the entire enterprise.
    The final phase of digital adoption is achieved when a company connects all of its assets and processes across an integrated value chain. The IIoT and cloud architecture will allow companies to connect their operations on a global rather than local scale, whether it is connecting all subsea wells to optimize production from multiple offshore platforms or connecting all of a company’s refineries located across the US Gulf Coast.

Using IIoT to connect assets, people and processes

We live in an age of innovation and digital transformation. Digital changes what is possible, and its impact is affecting every individual, organization, business and government.

We believe a better working world means developing better, digitally-enabled approaches for our people, our clients and the communities and wider world we all serve.

We also believe that digital should be infused in everything we do. So we don’t start with a digital issue — we start with a business issue, and then build a plan, fit for a digital world. This means being able to look at digital from every angle, to help build, grow and protect organizations

We believe the connectivity gains promised by the IIoT can help streamline and simplify today’s fragmented and globally distributed oil and gas supply chain, just as it has done for other industries who are further along the adoption curve.

Contact us

Fay Shong
+1 312 879 2133

Winston Chung
+1 415 984 7075

Scott Dixon
+1 614 232 7063

Alex Fleming
+1 720 931 4305

Girish Rama Krishna
+91 484 304 4000

Jeff Liu
+1 415 894 8817

Axel Preiss
+49 6196 996 17589

Eric Zhu
+86 212 228 2818

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