Digital Transformation in the Oilfield: Where do companies go wrong?
March 5, 2018
As companies report efficiencies from digitizing the oilfield, everyone is racing to get on board. According to a survey by Boston Consulting Group and MIT Sloan Management Review,eighty-five percent of executives believe Artificial Intelligence (AI) will enable a competitive advantage for their business, yet only 39 percent of those executives had an AI strategy in place. While the pace of change for the oil & gas business might not be as rapid yet, it is happening and the companies that are adopting new technologies like AI to create greater efficiencies are beginning to reap the benefits.
What makes advanced analytics in O&G uniquely challenging?
As an industry, oil and gas (O&G) faces a set of unique challenges when implementing AI. Companies going through digital transformation generally follow this value chain framework:
Companies started by simply measuring the data. Then devices became connected to the internet, and companies began to store historical measurements, manage the information, and monitor assets in real-time. With this new information, companies could perform analysis on the data (for example, checking for normal operations in equipment). As technology and machine learning progressed, analytics gained more advanced capabilities (for example, predicting when a specific piece of equipment would break). Today's advanced analytics provide the true value of a digital transformation.<- Go Back
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