Successful implementation of Big Data and Advanced analytics in O&G Oslo, February 10 th 2015 DRAFT This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
Five fundamental digital trends are disrupting traditional business models High- Ubiquitous Ubiquitous Unlimited Performance Intuitive Instrumentation Connectivity Data Storage Computing Visualisation Proliferation of High-speed Cheap and Increasingly Large displays , sensors, cameras, broadband reliable storage powerful CPUs, 3D technology microphones, connections and solutions clever networking allow information gyroscopes, GPS cheap WiFi solutions and to be displayed transponders, etc . advanced and interpreted algorithms intuitively Rapidly increase in Range of speed per Global data in Moore’s law of Virtual reality are “remote” broadband zettabytes doubling computing becoming mainstream communications generation (1 ZB = 1 Trillion GB) power bi-annually Giga bit/s 1Bn Mega bit / s 1Mn Kilo bit / s (Smart) Phones Top: Google glass bit / s Tablets Bottom: Oculus Rift 2 nd 3 rd 4 th 1k Desktop PCs 1980 2000 2020 Source: Press search, Bain analysis , Intel, Gartner 2 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Big Data and Advanced analytics build 4 key elements Very large Unstructured Analytical High velocity + + + data volume Data complexity of analytics • Large sets of • Incomplete, low • Need for real- • Complex, large data quality and/or time results i.e. number of steps (>terabytes) hard to sort data to organize; in minutes fuzzy logic • Sensor data • Language • TSA security • Inferring specific check decisions preferences from • Machine to • Sound/Audio general habits machine logs • Instances of • Images personalized • Transaction data • Video advertisement • Social media • Offers in a store Big Data and Advanced analytics Source: Bain analysis; Industry expert interviews 3 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Four key application areas are emerging for Advanced analytics in Oil and Gas companies Oil and Gas applications Predictive plant and Digital fields drilling analytics Reservoir modelling and Remote operations seismic imaging Big Data/ Advanced analytics Big Data and Advanced analytics Enabling Technology Trends High- Ubiquitous Ubiquitous Unlimited Intuitive Intuitive Performance Instrumentation Connectivity Data Storage Visualization Visualization Computing 4 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
These applications can have a transformative impact PREDICTIVE PLANT / RESERVOIR DIGITAL DRILLING REMOTE MODELLING AND FIELDS ANALYTICS OPERATIONS SEISMIC IMAGING • Downhole • Use of predictive • Use of telemetry and • Increasing insight measurement and analytics to reduce sensors to create into subsurface control systems costs and foresee "control rooms" structures by linked to production events (failures) to which monitor providing 3D and 4D model, providing act before they activities at (time-lapse) displays real time occur multiple remote optimization locations potential Less plant outages / Increased safety, less staff Increased production rate Increase in accuracy production stops on site Growth funnel capacity Higher ultimate recovery Reduced Maintenance costs Reduced operating costs increase through higher efficiency and quicker Additional revenue; Increased drilling speed, screening of low potential increased system accuracy, reduced costs prospects throughput Source: Bain analysis; Industry expert interviews; MIT Technology Review; SPE Reports; Company presentations and publications 5 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Growth of Advanced Analytics will continue DRIVERS OF INCREASED DRIVERS OF INCREASED POSSIBILITIES NEEDS Desire for increased exploration Cross leveraging from certainty development in B2C industry Lower drilling cost in Increased data availability Increased demand unconventionals market subsurface and surface and potential for AA in oil and gas Continuously increasing Growing share of maturing computer power fields -need for enhanced recovery Continuous development of predictive, optimization, cognitive Cost reduction to sustain in low and artificial intelligence margin environment Source: Bain analysis, industry expert interviews 6 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
However, the Oil and Gas industry has been relatively slow to adopt new technology… Impact of digital/physical transformation by industry, today and expected until 2020 R&D spend typically 5-10% of revenue R&D spend typically 1-5% of revenue Source: Bain analysis; Rankings are based on examination of 300+ companies engaged in Digital/physical transformation projects, plus industry interviews 7 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
…our clients cite many reasons WILLINGNESS CAPABILITY Senior management not bought in Lack of appropriate data in raw form Unclear direction for the team Org. structure limits collaboration Data architecture limits ability to use Lack of business cases / proof points islands of great data Misaligned incentives for functional Insufficient Insufficient managers technology skills analytical skills Culture to enable change Lack of sufficient technology tools 8 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Boundaries are pushed by service companies and niche IT players Traditional Basic Advanced Innovative Traditional Basic Advanced Innovative Big 5 NOC’s Mid-tier / independents Service Companies IT vendors Niche IT players Indicative group median Source: Bain analysis; Industry expert interviews 9 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
8 steps to success 3 • Organize to capture value , cut through resistance in Business Units, 2 • Prioritize centralize capabilities, decentralise applications strategic applications importance Organize • Size the prize , and • Foster culture of 1 4 locate where in the innovation and drive value chain change in the business 5 • Build Future proof IT architecture, rethinking data management • Build strategic 6 partnerships , capturing the best of industry and Staying abreast in world technology specialists of changing technology requires constant re- 7 • Build high performance adjustment of the team , recruit talent, training course 8 • Drive execution pace to match ambition level 10 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
The size of the price varies per business segment 1 Refining & Sales & Exploration Development Production processing Marketing Increase speed Increase Value Capacity of Decrease Increase and improve (ultimate) driver growth funnel operational certainty decision making recovery costs Potential Time to value 5 years+ 3-5 years 1-x year < 1 Year < 1 Year delivery Source: Bain analysis; Industry expert interviews 11 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Prioritize analytic and technology applications aligned 2 with company strategy Fast Follow Develop A B (Copy) Competitive Advantage Strategic importance Do not D C Smart follow Prioritise (Selectively pursue) Value Ability to differentiate 12 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent PER Big Data Analytics in Oil and ...
Recommend
More recommend
