Page 10: of Offshore Engineer Magazine (Jan/Feb 2020)

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SPECIAL REPORT Big Data

Big data or big hype?

The size of the prize of so-called digitalization technologies is enormous. How much is reality and how much is hype?

By Elaine Maslin -based analyst ? rm ing about digitalization in earnings

Wood Mackenzie asked close and management days taking a

UK this very question. The signi? cant jump, dominated by BP results are perhaps not that surprising. and Shell, initially, with Equinor and

Speaking at Offshore Europe, last Total joining in to a large degree in year, Martin Kelly, VP of Wood Mack- 2018 and then ExxonMobil becom- enzie’s corporate research group, out- ing more vocal in 2019. “And we ex- lined the results. For the purposes of pect more than last year,” says Kelly. their research, digitalization, he said, He gives examples, such as Suncor encompasses all digital technology in- talking about data and data cleans- cluding arti? cial intelligence (AI). ing, activities that will take a while to “Size of prize is enormous; (improved) follow through, and Chevron talking

HSE (health safety and environment), about the potential of digital being cost saving and value increases in assets enormous, but not putting number and companies,” he says. Wood Mack- on it. “There are few speci? cs on the technology to deliver work in more enzie has, in an October 2019 report, bene? ts,” says Kelly.

One that has offered some detail is effective, cheaper, safer ways, and get estimated $40 billion could be saved in operating costs in the upstream (on and Norway’s Aker BP, that calls itself a real-time feedback loops,” he says. offshore) industry – per year (of a total technology company that happens to “You can make a change and get re- produce oil. Aker BP says its reduced sults instantly.” $356 billion in 2018).

But, overall there are very few ex- “But, how much of this is talk, how time spent on routine operations by around 75%, cutting forecast 2020 amples digital technology being dis- much is noise versus results being de- closed openly, says Kelly. “We think livered? We think there’s a lot of hype; OPEX by about 15% or $150 mil- a lot of proof of concept and trial. lion, says Wood Mackenzie’s report. it’s because the industry is ? nding digital transformation at scale harder

What are companies doing? They are When it comes to the project devel- opment side, it’s less easy to get fast than they ? rst thought. We are seeing talking about it.” some proof of concept, but it’s not

Wood Mackenzie has been tracking results, however. coming through at scale yet. The in- mentions of digitalization in com- Indeed, a large focus of what’s be- dustry has set that use of digital as a pany earnings and analyst calls. Kelly ing done at the moment is in opera- says 2016-17 was an in? exion point, tions, “where there are myriad work priority. At senior level digital is being processes where industry can deploy talked about as strategic.

with the number of super majors talk- 10 OFFSHORE ENGINEER OEDIGITAL.COM