DIGITAL TRANSFORMATION IN THE OIL INDUSTRY
R&C: How would you describe the way digital transformation is reshaping operations across the oil industry? What opportunities do new technologies offer companies in this space?
Parentelli: The oil industry is facing supply-driven disruptions which, added to demand compression, lead to a new operating model enabled by digital transformation. Over several decades and irrespective of oil prices fluctuation, return on capital has been decreasing in the oil & gas industry. The industry has had to open itself up to the advancements of digital technology to improve returns and has now started leveraging it to be competitive and to face any further threat of disruption. For the oil & gas industry, digital transformation is bringing a paradigm shift for downstream operations and the value chain. Industry 4.0 principles have brought a structured template to apply digital forces to manufacturing industries. In addition, intelligent processes and automation are transforming oil & gas into a data and insights-driven sector that leverages real-time systems, Internet of Things (IoT) connected smart devices and deep analytics to streamline operations. New technologies offer the prospect of improved performance, efficiency and agility throughout the supply chain.
Jul-Sep 2019 Issue
DuPont Sustainable Solutions