Data and oil possess many similarities. Both are exceptionally valuable commodities, but without sophisticated refinement processes, both can be rendered unusable. In the same way that data must be refined to create meaningful information and actionable insights, oil must be converted into gas, petrol and plastics in order to drive commercial activity. With the emergence of new technologies, the ability for data to drive value within the oil and gas sector has never been greater, to provide crucial insight across downstream, midstream and upstream sectors. This whitepaper is designed as a guide for senior executives seeking to understand the incredible capabilities and associated value of data in oil and gas.
Introduction, Data Value – the New Currency for Oil and Gas.
Built upon vast quantities of legacy data and generating near unquantifiable terabytes of data daily, the variety of data collected across oil and gas is diverse in type, quality and scale. Throughout the lifecycle of operational regions, fields and assets, data is accumulated in a constant flow from the multitude of different sensors and collection tools in play.
Understanding how to interpret and manage all this data, are major challenges across all industries, but for the oil and gas sector the pressure to deliver on sustainable efficiencies and to catch up with its industrial peers in the spheres of digitalisation and automation, has elevated data to a valuable resource in its’ own right.
The old-adage of ‘garbage in, garbage out’ suggests that the value of data depends upon its accuracy and how effectively it’s gathered. It also suggests if you’re gathering the wrong data that ultimately, insight and associated decision making will suffer too.
With the generation of unprecedented amounts of data, the complexity and challenges associated with managing it cannot be underestimated. The good news is that for companies that can manage and interpret data in the right way, the rewards are potentially vast.
This is where analytics play a crucial and transformational role, enabling businesses to understand what has happened previously, what is happening now and what is liable to happen in the future. More importantly, analytics provide the information and insight needed to convert data into actionable responses; in other words, what activities need to occur next in order to capitalise on the data, both technically and commercially.