Digital Transformation Makes Data the “New Oil”

GE recently held its Oil & Gas Annual Meeting in Florence, Italy.  This consisted of a number of presentations and demonstrations featuring the latest oil & gas technologies for upstream, pipelines, LNG, refining, etc.  Even in a time where many capex budgets have been adjusted downward in line with the “new normal” in oil prices, companies have deploying digital transformation projects due to their often quick ROIs and positive bottom line impact. The large number of C-level executives that traveled to and presented at the event help attest to that. 

The annual meeting was kicked off by GE Oil & Gas CEO Lorenzo Simonelli, who explained how his company is charting a new course in productivity, resilience, disruption and innovation.  Mr. Simonelli told his partners: “Together, we fuel the future” in this new era of human partnerships and co-creation.  Next, Fatih Birol, Executive Director of the International Energy Agency, discussed how low-carbon fuels and technologies, mostly renewables, will supply nearly half of the increase in energy demand to 2040. He also discussed how a wave of LNG is spurring a second natural gas revolution, and how we still need new upstream investments to avoid a period of greater market volatility and help smooth the energy transition to renewables. Then, Arnaud Breuillac, President of Exploration & Production of Total, discussed an environment shaped by disruptions and how to improve operational performance while reducing opex and capex by positioning upstream on low-cost integrated assets.

Reduced Spending Accelerates Need for Digital Transformation

GE’s Jeff Immelt (right) and BP’s Bob Dudley (left) discuss pressing need for digital transformation in oil & gas

GE CEO Jeff Immelt and BP CEO Bob Dudley then held a “fireside chat” in which they discussed the pressing need for digital transformation in the oil & gas industry to help increase productivity and profitability in this new era of reduced spending. Bob Dudley encouraged the industry to increase collaboration and partnerships, to not view change as threat, and not to overreact to short-term market cycles.

Other executive presenters, including   Luca Cosentino, Energy Solutions Executive Vice President of ENI;  Martin Houston, Executive Vice Chairman of Tellurian Investments;  Claus Hemmingsen, Group Vice Chief Executive Officer of Maersk;  Joseph Geagea, Executive Vice President Technology, Projects and Services for Chevron; Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes (which is about to merge with GE Oil & Gas); and Nelson Silva, Chief Strategy and Performance Officer of Petrobras echoed many of the same themes; focusing on their respective approaches to digital transformation.

Manoj Chouthai, Chief Information Officer of Reliance Industries Ltd., discussed that for his company, enabling the digital future is a top priority, as “data is the new oil, and intelligent data is the new petrol”. 

In another “fireside chat,” Bernd Leukert, SAP Board Member and Senior Executive, Technology; and Bill Ruh, Chief Digital Officer of GE discussed how the two companies are partnering to strengthen the integration between Predix and SAP's HANA Cloud Platform.

Predix Role in Digital Transformation

Colin Parris, Vice President, Software Research of General Electric’s Global Research Center, led the discussion on exploring what’s possible with Predix, GE’s operating system for IIoT and cloud-based platform for edge-to-cloud connectivity and manufacturing analytics, and its role in helping its users with digital transformation.

ARC also presented a white paper on the benefits of asset performance management for oil & gas enterprises, including how APC can provide a needed platform for innovation.