Transcend conventions to optimize CAPEX and OPEX

摘要

The oil & gas (O&G) industry is in a state of flux, fueled by unpredictable changes in commodity price, rapid technology advances, changing customer needs, stringent environmental regulations and aging plants. This lack of predictability impacts resource utilization and calls for a measured focus, including as follows: 1. Disciplined capital investment 2. Maximization of asset delivery, from exploration to refineries 3. Streamlined, well-defined personnel roles. While cash flows have looked more promising, project scopes have expanded and bring bigger challenges to curbing operational costs and managing project risks. Given the industry's propensity for mega-projects that leverage economies of scale, it's time to align the humongous capital project cost with demands to shorten exploration & production (E&P) cycles. The industry has achieved substantial material cost reductions. As a next step, according to PwC and others, digital technology implementation cumulatively can save up to $100 billion in the upstream sector by 2025. An immediate focus should be implementing a robust enterprise data management (EDM) platform for improved collaboration and asset data management (ADM) strategies to drive operational efficiency. The O&G industry is awash with more data than it can manage. Companies access diverse data sets generated by smart sensors, logging tools, geophones and other sources. Analytics layer insights on top of this data deluge, enabling better decision-making. As analytics-driven operating models become the norm, the focus will shift toward data quality.