In the past 8 months, the world has witnessed the greatest oil meltdowns in history. Winners and losers have emerged from this trend, and this has triggered a number of serious macroeconomic outcomes that affect virtually all regions on earth. One factor that has contributed to this price collapse is the emerging technology trend in the oil sector. These technologies have allowed the U.S to acquire energy independence, or at least some form of it, and will continue to disrupt what has long been the oil and gas status quo. They are briefly summarized below.
▪ Seismic Technologies now leverage hard-core computing power to locate newer exploration sites. The latest evolution in this set of technologies is the 4D innovation that adds the time component in addition to height, width and depth. With this, a reservoir can be modelled in real time on a computer system which shows how the reservoir will change over time. This saves trial and error worth billions of dollars, and allow oil rigs literally “walk from one drill site to the next.”
▪ Digitized Oilfields that tilt the playing field by introducing several layers of automation and control, thus streamlining operations. On this single platform, all components of the drilling process can be monitored in real time as they interact and communicate with the system. The information is evaluated by computers which send the resulting analytics to real-time operations centres that can optimize processes in line with these results. This technology alone can cut operating costs by up to 25 percent while setting a huge precedent for big data gathering and analytics in the oil and gas industry.
▪ The Shale GameChanger which is the fore-runner of a new suite of drilling and exploration techniques that enable the extraction of crude oil from previously “unproductive” grounds. New drilling techniques include hydraulic fracturing, the well-known “fracking,” and horizontal drilling. These innovations explain how the United States has pushed crude output to its highest level since 1989.
▪ Cloud Computing/Virtualization which solves numerous computing, design and business challenges for players in the oil and gas industry. This trend is billed to displace the notion of limited computing power in much the same way as the personal computer displaced the mainframe; and this makes a lot of sense to oil and gas projects which are becoming larger and more complex.
▪ Digital Fabrication that enables the production of bespoke products for oil and gas firms at some of the lowest costs ever. Before now, mass production of oil and gas components was the most cost-effective route as customized products cost way more to fabricate due to less economies of scale. But this is fast turning around as digital fabrication picks up steam.
Change is good, but it always brings consequences, some more striking than others; all of these technologies translate into more efficient and streamlined operations, cost savings and, consequently, job cuts. The disruption in the oil sector is far from over, more surprises should be expected as these technologies take centre stage and become the order of the day.
By Emmanuel Iruobe
