What is happening in the world of oil and gas? Operators are looking to maximise the value of their investments by optimising well production and the supply chain. To do this and successfully address the digital transformation, integrated, secure, scalable digital technologies are needed.
Despite the strong impetus provided by Industry 4.0 incentives, the Italian Oil & Gas context seems to be lagging behind. Digital solutions to enhance development exist and are reliable, but their adoption is still rather limited. One of the main barriers to adoption relates to data security and the fear that the interconnection between devices and remote connections may expose production to risks.
Yet revamping plants by implementing 4.0 technologies such as Smart Sensor, Cloud, IoT, AI, Blockchain, Cyber Security is relatively simple, safe and within reach.
Just as the advantages of an Industry 4.0 solution are obvious and the tax breaks are attractive. Now is the time to look to the future and reap the benefits of new technologies.
While large industry is already experiencing the benefits of digitisation, medium and small enterprises have to mature this new approach. In particular, the oil and gas sector generates a huge and constantly increasing amount of data. Managing this big data through centralised hubs and platforms capable of receiving, interpreting and validating it in real time can enable significant improvements. BP's first pilot tests on 180 wells have increased production by 20%. Shale oil has become competitive again in a still depressed market. Not to mention Eni Green Data Center, which has one of the most powerful supercomputers in the world in the private sector.
The automation market in Oil & Gas
The oil and gas industry faces a number of challenges, including price volatility, energy policy uncertainty, cost containment, a worsening fiscal environment, a shortage of skilled labour and day-to-day operational challenges. A successful turnaround requires the ability to respond quickly and effectively to these dynamic conditions. Upstream companies suffer from severe resource constraints as they struggle to increase production and replace proven reserves. Meanwhile, downstream companies face pressures on working capital and profit margins.
The automation market in Oil&Gas (traditionally consisting of Scada, Dcs, Plc, HMI, Instrumentation, RTU, Networking) is estimated at $11.23 billion in 2017 (out of a total of $76 billion attributed to process automation) and is expected to reach a value of $18.03 billion by 2023, with a composite growth rate (CAGR) of 8.02%.
Major investments and technological innovations are being carried out by a large number of players including, for example, Rockwell Automation (AI, Artificial Intelligence), Schneider Electric and Mitsubishi Electric (safety PLCs), Dassault Systems (simulation software for product engineering), GE (Cloud solutions for industrial assets).
Armando Martin