The Real Oil, Gas Disrupter - Application of Technology
Technology’s disruption in the world of oil and gas has been most pronounced in recent years as companies learn how to operate with fewer people, though production still surges.
Big Data and analytics – more importantly – how companies are using their Big Data and analytics is integral to their future success.
“There’s really two types of data – data that informs a business problem and data that does not,” Michael O’Connell, chief analytics officer for TIBCO, told Rigzone. “You can collect all the data under the sun, but if it’s not relevant – no matter how much of it you get – it’s not useful.”
The Necessity of Big Data
Technologies such as Artificial Intelligence (AI), machine learning and Big Data are already disrupting the oilfield and could be instrumental in hot spots like the Permian Basin.
“We’re going to put 110,000 wells in [the Permian] in the next couple of years. If you add up all the man years we have in the major operators that are going to be doing that, there’s just not enough man years to do it,” Troy Ruths, CEO and chief data scientist for Ruths.ai, told Rigzone. “So that gap is filled with technology, and particularly for unconventionals, it’s data. Because the reservoirs are so complex, the processes need to move faster, and companies are realizing that data is a critical element.”
Still, it’s been estimated that oil and gas companies are using only 1% of their data.
“Picking up all this data and not using it is kind of like building a Facebook page and you’re the only one to look at it,” Robert Golightly, senior manager, product marketing, manufacturing at AspenTech, told Rigzone. “What’s going to make a difference is finding those behaviors – whether innocent, malicious or anywhere in between – that degrade equipment. If you can find a behavior, that’s where all this expertise really starts to become more important than it really is.”
Ruths said the big challenge he sees in oil and gas is people who are starting to operationalize their analytics.
“Now they have larger user bases and more workflows and more data that needs to connect to it,” he said. “You hit different growing pains when you try to operationalize something versus when it was in the back office untouched by large groups of people.”
TIBCO creates custom solutions for the energy sector that allows companies to extract data from difficult systems and integrate it for analytics.
O’Connell identified the following three market forces:
- AI and Analytics. “Everybody wants smart stuff – AI, machine learning, analytics, visual, insights from the data …”
- Relieve the data bottleneck. “Getting data up to the analytics layer is a real bottleneck.”
- Facilitate getting insight to operations and production systems. “This will help them affect daily decision-making and take action to drive value to the business.”
No Silver Bullet
As the industry utilizes Big Data and analytics more heavily, the natural question to ask is what kind of human capital it takes to apply those technologies. A few years ago, the industry was looking to hire more data scientists to account for the large amounts of data companies were gathering.
Today, technology helps with that.
“Machine learning, without having to be a data scientist, lets engineers look at historical data and figure out what’s really going on,” said Golightly.
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