According to BloombergNEF digital transformation is a companywide phenomenon and will probably become a matter of culture as much as a matter of specific, defined implementation of software and processes.
According to the recent Strategy& survey only 2.5 percent of participating oil, gas and utility companies had a chief digital officer. Last year, that figure was 14.4 percent, below the global average of 21 percent. So even if chief digital officer roles are going to hit a peak in large energy and utility companies, there’s probably room to add more of them before hiring slows or stops.
According to BloombergNEF survey the biggest barrier to innovation isn’t a lack of understanding of technology, or applications that aren’t fit for certain purposes; rather, the biggest barrier in a highly regulated industry is the regulation itself.
However, departmental “silos” of operational groups unwilling or unable to coordinate with each other was ranked as the biggest barrier by 38 percent of respondents.
How can a company cut through silos, particularly when “innovation” means ever-more digitalization of existing processes — as well as new ones and even new, digitally based business models? In theory, that’s a job a chief digital officer can and should be doing. And that’s where another survey result is instructive. Asked which companies should supply Internet of Things and artificial-intelligence capabilities to utilities, nearly half of respondents said startups should be the providers; many more said that industrial equipment companies, such as General Electric Co., Siemens AG and Schneider Electric SE, should provide digital technology.
It all boils down to the fact, that the established businesses need to become more digital. But if they also need to do so using vendors and partners who are small and specialized, they can really only do so with expert leadership.
Oil & gas executives at the KPMG’s Global Energy Conference in Houston named the quantum computer technology as the next big breakthrough for the oil and gas sector.
Quantum computers are powerful machines that build on the principles of quantum mechanics to solve complex tasks.
According to them the breakthrough will lie in applying quantum computers to the industry’s data-intensive processes.
COO of Woodside Energy Mike Utsler said that quantum computing has remarkable potential.
It can speed up the [time needed for data processing] from 12 hours to 12 minutes to 12 seconds,” he said. “That’s the level of potential of quantum computing in the hydrocarbon supply chain.
According to Morag Watson – Vice President of Digital Innovation at BP, many companies would need to redefine some of their processes and in order to keep pace with the computer technology.
I’m looking at emerging digital technologies that will change every single aspect of how we do business. In fact, it will make some elements redundant,” she said. “[Quantum] speeds things up so much that it will radically change them.
As computers become more of a part of the oil and gas industry, executives realize that they are in need of computer scientists to operate the complex systems in place. The difficulty here is to have the practical industry-specific information or a problem “translated to a computer scientist.
Keeping up with cutting edge technologies is no longer optional for the industry. If you don’t want to get with this technology, someone else will” said Morag Watson.
Source: S&P Global
BUCHAREST (Romania), April 19 (SeeNews) – Romania’s top oil and gas group OMV Petrom [BSE:SNP] said on Friday its shareholders have approved a 4.17 billion lei ($985 million/876 million euro) investment budget for 2019 and the company will pay a 35% higher dividend for 2018.
Some 3.42 billion lei of the planned investment will be directed towards Upstream operations, while investment in Downstream Oil will amount to 551 million lei, OMV Petrom said in a statement following a general meeting of its shareholders.
Upstream investment will partly mitigate the natural production decline given field maturity. Oil and gas production in Romania, excluding new portfolio optimization initiatives, is expected to decrease by 4% in 2019 compared to 2018, the company said.
The 2019 investment budget is based on an average Brent price of $70 (62 euro) per barrel.
The 4.17 billion lei investment budget for 2019 is money that will mostly go into the Romanian economy. OMV Petrom is an essential player in the economic landscape: it supplies the energy needed by millions of Romanians and thousands of local businesses, it contributes to business development and it secures thousands of jobs for Romanians, OMV Petrom CEO Christina Verchere said.
Also on Friday, OMV Petrom’s shareholders approved the executive board’s proposal to distribute as dividend some 1.53 billion lei, or 0.027 lei per share for 2018, 35% higher than the dividend payout for the previous year.
The total gross value of the dividend to be distributed accounts for 38% of the group net income attributable to stockholders of OMV Petrom in 2018, the company said. More than 315 million lei will go to the Romanian state, which holds 20.639% of OMV Petrom’s shares through the energy ministry.
On Monday, OMV Petrom said that its new polyfuel unit at the Petrobrazi refinery has started production following a total investment of 65 million euro.
OMV Petrom is the largest energy company in SEE with an annual hydrocarbon production of 58.3 million boe in 2018. The group also operates an 860 MW high-efficiency power plant. The group is present on the oil products retail markets in Romania and neighbouring countries through 794 filling stations as at the end of 2018, under two brands – OMV and Petrom.
Shares of blue-chip OMV Petrom traded 0.27% higher at 0.3670 lei as at 1518 CET on Friday on the Bucharest Stock Exchange.
(1 euro=4.7607 lei)
The Lubrizol Corporation announces new Lubrizol® PV1510 engine oil additive technology designed to meet the complex requirements of the ILSAC GF-6 specification. Testing is underway in accordance with the ILSAC timeline to enable Lubrizol PV1510 availability ahead of the first licensing, expected on May 1, 2020.
The complexity of the ILSAC GF-6A and GF-6B specifications should not be underestimated. Engine oils must pass seven new tests and offer performance that increases fuel economy and cleanliness, while mitigating the harmful effects of low speed pre-ignition (LSPI) in modern engines.
Lubrizol PV1510 is based on simplicity – with one additive and one viscosity modifier. Our technology is flexible, providing customers with a choice of base oil and a cascading treat rate. We have performance that addresses test requirements while achieving optimal lubrication properties for modern engines – states Martin Birze, regional business manager for Passenger Car Engine Oils at Lubrizol.
Lubrizol PV1510 features:
- Simplicity – One additive, one viscosity modifier, one pour point depressant embedded
- Flexibility – Base oil choice, cascading treat rate, viscosity grade read across
For more information about this new product or to stay informed on the specification upgrade, contact your Lubrizol representative or visit LubrizolAdditives360.com
WANT TO KNOW MORE?
Lubrizol delegation is attending the 6th CIS Base Oils and Lubricants conference
OMV Petrom is the largest integrated energy company in South-Eastern Europe. With an annual hydrocarbon production of about 58 million boe (2018), with Petrobrazi refinery operating in Romania and large oil & gas retail network – the company is set to benefit from digitalization all along the value chain.
Some of the current company’s digitalization initiatives were outlined in the recent OMV Petrom Capital Market Story (March 2019):
– Digital oil field – well automation and online condition monitoring;
– Standardized Narrow Band-Internet of Things (NB-IoT) – connectivity for the wells located in isolated areas and solution for cybersecurity;
– Production automated forecasting – improved process and data availability;
– Dashboard and Advanced Analytics via iPMS1- visualization and analytic solutions;
– Electronic coordination and management of the maintenance and operations;
– Refinery Dashboard – Data gathering and processing for monitoring and prediction;
– Virtual Operator Training – Desktop-based 2D & 3D simulators;
– eTop Turnaround Digital Board;
– Terminal Automation System;
– Fast Lane, customer identification based on car plate recognition and mobile payment;
– Outdoor Payment Terminal for filling stations closed at night;
– Retail Data Warehouse and Predictive Data Analytics as enablers for business decisions;
– Self Service terminal, digital interface to access our services;
– Smart Apps, an automated self-service interface for customers and partners;
Jaco Fok, Chief Innovation Officer at OMV Petrom will discuss the current company’s digitalization projects in greater detail at IIoT and Digital Solutions for Oil & Gas conference. Jaco will present a case-study on OMV Petrom and share company’s experience in building a digitally dexterous company.
The plant should start operating in June, and the facility would cost less than 1 billion rubles (U.S. $15.5 million), Nail Maganov, head of the Tatarstan company, said in an April 3.
The Taneco refinery site in Nizhnekamsk, Russia, where parent company Tatneft plans to remodel an existing facility into lubricants blending plant.
Tatneft’s press department confirmed to Lube Report that the company’s top management intends to start its own lube production but declined to disclose when the plant’s construction will be completed and what slate of products it will produce.
“We have already given a facility that is ready to be remodeled [to a blending plant]. The technical details for the plant are prepared,” said Leonid Alekhin, Taneco’s general director. He added that in the future the company plans to expand the plant’s capacity.
The company’s officials revealed this idea after the sale last year of the assets of Tatneft-Nizhnekamskneftekhim-Oil, a 75-25 joint venture that the oil major shared with the chemicals company Nizhnekamskneftekhim. The JV owned and operated a 10,000 t/y polyalphaolefin plant and a lubricants blending plant, which were both sold to another company last year.Meanwhile, Tatneft experienced problems with an uninterrupted supply of its newly redesigned finished products under the Lux-PAO lubricant brand.After eight years of idling, Tatneft-Nizhnekamskneftekhim-Oil restarted its PAO production last year in January, but soon it filed for bankruptcy for its outstanding debts and a month later at an auction was sold to another company, Capital-Invest, for 2.5 billion rubles (then U.S. $44 million).
Nizhnekamskneftekhim-Oil produced synthetic and semi-synthetic motor oils and synthetic such as compressor oils for Tatneft. The oil major said it now hopes to use its new lubricants blending facility to expand its product line, while using Taneco’s Group III base oils produced at the refinery’s 180,000 t/y Group III base oil plant.
WANT TO KNOW MORE?
Tatneft is attending the 6th CIS Base Oils & Lubricants conference
A recent EY study shows that Artificial Intelligence could be a solution to both reduce the impact of the “brain drain” in the oil & gas industry as well as making it more attractive to younger generations.
The oil and gas industry is rapidly changing and due to the recent economic slowdown multiple industry jobs were lost. This inevitably results in the loss of knowledge and experience across all the sector.
It is clear that the industry is in need of new young professionals. However, a recent survey by EY shows, that:
“44% of Generation Y and 62% of Generation Z say a career in oil and gas is unappealing.”
Additionally, according to EY 81% of the industry’s executives agree that the industry will need to develop a better-educated, highly skilled workforce over the next 10 years.
Essentially all that means that there are actually two interlinked problems when it comes to talent crisis in oil and gas. First one being the exit of older workers and loss of their knowledge and the other one being inability to find new talent to replace them.
According to EY AI has a potential to address this challenge in three ways:
First, by making existing oil and gas operations more efficient, so less resources are needed to maintain them. Second, by codifying some of the knowledge of retiring engineers into virtual agents. Thirdly, by making the industry more attractive to younger hires.
AI and other advanced technology will help to automate lots of the unattractive hands-on work and as well as making it less physically demanding, less dangerous and less environmentally impactful. All that will help not only to make the oil and gas operations more efficient, but also to make the industry itself more attractive to the young professionals.
AI and advanced technology can also be used to preserve the expertise of retiring generations and combat the “brain drain”.
Finally, AI-enabled approach will also transform the way the oil and gas industry works as an ecosystem. It will foster the creation of open data ecosystems, possibly even encourage the external parties, like start-ups to share the data between each other. All that will result in new products, new services, new companies and skilled roles emerging, which will ultimately provide the means for the industry to grow.