Special Report: There's something Big in the works
, January 5th, 2017
Regional NOCs and oilfield services companies alike are thus resorting to Big Data to not just manage and channelise to good use the tremendous volume of data it is producing each moment, but also sees this IT concept as a means to achieve operational excellence in this subdued oil price era.
The numbers are jaw-dropping: according a recent survey conducted by Cisco, oil and gas industry professionals believe that the concept of Internet of Everything (IoE) has the potential to automate 25%-50% of manual processes. As per the latest research report by Global Market Insights Inc, the global oil and gas analytics market size is expected to exceed $21 billion by 2024. According to a Micro Market Monitor report, the Middle East Big Data, business intelligence, and analytics market size is projected to grow from $5.09 billion in 2015 to $12.38 billion by 2020, at a CAGR of 19.4% from 2015 to 2020.
According to Cisco Consulting Services, by transforming business processes through IoE, oil and gas companies globally can capture their share of $600 billion of Value at Stake between 2016 and 2025. For a $50 billion oil and gas firm, this translates into an 11% bottom-line (EBIT) improvement.
However, it might be interesting to note that while Big Data and analytics may be new to some industries, the oil and gas industry has long been dealing with mammoth quantities of data to make technical decisions. In their quest to learn what lies below the surface and how to draw it out, energy companies have, for many years, invested in seismic software, visualisation tools and other digital technologies.
Now, the rise of pervasive computing devices — affordable sensors that collect and transmit data — as well as new analytic tools and advanced storage capabilities are opening more possibilities every year. For example, they can pair real-time downhole drilling data with production data of nearby wells to help adapt their drilling strategy.
Oil and gas companies essentially need Big Data to monitor operations, streamline processes, lower risks to workers and prevent disasters. These companies are deluged with data generated by a multitude of sensors and machines spread throughout their far-flung value chain. Internet of Things solutions are important for the oil and gas industry in that it allows oil and gas companies to manage and gather data from operations in remote environments while eliminating the need for workers in these environments.