Digitisation has power to unlock $50b in savings
May 21, 2018 | 3:13 PM
by Times News Service
The McKinsey report said that digitalisation was the number-one trend driving CEO decision-making in the global oil and gas sector. - Supplied picture

Muscat: A range of interconnected emerging technologies has the power to unlock a potential $50 billion in savings and increased profit in the oil and gas sector, according to recent research by international consulting firm, McKinsey.

Encompassing fields such as artificial intelligence (AI), blockchain, robotics, sensor technology, machine learning, deep learning, and edge computing, digitalisation is expected to cut capital expenditure by 20 per cent, with operating costs upstream cut three-five per cent and downstream cut one-three per cent, the report stated.

The McKinsey report said that digitalisation was the number-one trend driving CEO decision-making in the global oil and gas sector.

The related benefits to energy companies, their customers, and the wider society, were even greater, estimated to reach $1.6 trillion over the next seven years, according to data presented at the 2017 World Economic Forum Annual Meeting. Environmental benefits include reducing CO2-equivalent emissions by some 1,300 million tonnes, saving some 800 million gallons of water, and avoiding oil spills equivalent to some 230,000 barrels of oil.

Responding to the high importance being placed on digital transformation and disruption by industry decision-makers, unlocking the opportunities that would flow from digitalisation would be a key focus for the 2018 edition of the world’s leading oil and gas event, the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

“Digitalisation is an urgent priority for industry CEOs and business leaders, offering cost savings, operational improvements, and safety and environmental gains that will reach into every corner of the business, but the opportunities come with risks that must be understood and navigated,” said Jean-Philippe Cossé, Vice President – Energy at dmg events.

“What we are seeing is a profound disruption to business-as-usual, which will have long-lasting effects. ADIPEC is responding to this with a new ‘Digitalisation in Energy' zone, supporting innovation, and helping drive smart investments that will be the foundation of business success in the years ahead,” he added.

Spanning both the exhibition halls and the strategic and technical conference programmes, the Digitalisation in Energy zone will include top technology providers and new start-ups serving the oil and gas sector. A purpose-built Innovation Theatre will provide tech companies with the opportunity to host expert talks and take digitalisation out of the technology silo and place it at the centre of a much bigger conversation.

Long-recognised as the premier meeting place for energy ministers, global business leaders and C-level executives from the world’s oil and gas giants, ADIPEC 2018 will see the return of the event’s highly regarded strategic and technical conferences, while also continuing the expansion of the exhibition and conference programmes.

Conference sessions for the downstream refining and petrochemicals sector, introduced for 2017, will return to ensure that ADIPEC covers each link in the oil and gas value chain. The co-located waterfront Offshore and Marine Exhibition and Conference will add a commercial dive zone, while other returning features include the ADIPEC Awards, which celebrate excellence in energy, and Young ADIPEC, a dedicated "edutainment" programme designed to encourage students to choose a career in energy. New for 2018 will be an Inclusion and Diversity in Energy conference programme, continuing and expanding on the work of the Women in Energy conference of the previous years.

Hosting more than 80 ministers, CEOs, and global oil and gas business leaders as speakers, ADIPEC brings together companies, decision and policy makers that shape the future of oil and gas supply, for four days of focused business, dialogue and knowledge transfer that addresses today’s energy challenges and defines tomorrow’s hydrocarbon landscape.

ADIPEC’s international technical and strategic conference spans 200 sessions, with 980 expert speakers and over 10,400 delegates. The technical conference programme, organised in collaboration with the Society of Petroleum Engineers (SPE), sets the international standard for the exchange of best-practice and operational excellence in the world of energy, with all technical abstract submissions put through a rigorous evaluation process by the Technical Programme Committee. Sessions cover upstream, midstream and downstream sectors, including specialised programmes such as offshore and marine.

Alongside the conference will be the landmark ADIPEC exhibition areas, underpinning the event’s status as a premier showcase for suppliers and customers across the oil and gas industry. For 2018, ADIPEC is expected to attract more than 2,200 exhibiting companies, including 38 NOCs and IOCs, and 30 international country pavilions.

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