According to GlobalData, the digital oilfield industry, which indicated a minimal interest in adopting connected technologies in the past, is increasingly using digital twins to set long-term goals.
FREMONT CA: According to GlobalData, oil majors are looking to automate their assets to reduce the impact of demand fluctuations on revenues. COVID-19 has served as a wake-up call to the disruption that a sudden drop in energy demand and labor availability can cause, according to the company, and digital oilfield technologies like digital twins and other remote monitoring solutions will be game-changers in upstream oil and gas operations.
Technologies like digital twins have the potential to be the backbone of digitalization in the sector, says Charlotte Newton of GlobalData's Thematic Research team. Oil companies can imagine more sophisticated and reliable machinery in oilfields now and in the future by creating 3D images and simulations of assets, systems, and processes.
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The oil and gas (O&G) industry saw major disruption during the first waves of the COVID-19 pandemic. Companies are now looking to automate as many processes as possible to mitigate future operational risks, commented Ravindra Puranik, Oil & Gas Analyst at GlobalData. Demonstrated by the fact that, despite the pandemic-driven industry downturn, contract activity related to digitalization in the upstream has remained resilient over the last two years.
Digital oilfield technologies are also used by operators in Southeast Asian fields to improve field development planning and increase production. Similar activity occurred in the Oceania and Western Africa regions, which may gain traction further as energy prices improve.
Digital oilfield technology is continuously becoming an integral part of the oil and gas industry, causing game-changing disruptions in upstream oil and gas operations. Oil majors such as BP, Shell, and Equinor have amassed significant experience in developing technologies to make digital oilfields a reality, and they are the industry leaders in this area. The primary emphasis is on asset management to maximize investment returns. To ensure long-term sustainability, companies are likely to use digital twins and other technologies to oversee every aspect of the asset lifecycle.