Digital Initiatives in the Oil and Gas Industry
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Added on 2019-10-31
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Digital drilling is a result of technological improvements in the global gas and oil industry and this technology is helping the companies in reducing the offshore cost activities and the efficiencies also.The report presents the evaluation of impact of digital drilling technology for minimizing the inefficiencies of offshore activities in the gas and oil industry. In order to analyse the impact the report works on the areas like: identification of the challenges which are encountered by the gas and oil companies which are experiencing an increase cost of production in the low priced oil environment, identification of the technology solutions which can be used to solve the problem of increasing cost of production, evaluation of the criteria in order to justify the technology of digital drilling investment with reviewing the efficiency of the company performance who are using the technology and who are not using the technology.
Digital Initiatives in the Oil and Gas Industry
Added on 2019-10-31
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Running head: DISSERTATIONCritical Evaluation of the Impact of Digital Drilling to Minimize Inefficiencies of OffshoreActivities in the Oil and Gas IndustryName of the Student:Name of the University:Author note:
1DISSERTATIONExecutive SummaryDigital drilling has become one of the major technological improvements in the oil and gasindustry of the world. This technology has been very helpful in reducing the cost of offshoreactivities, and also the inefficiencies. It is a time saving and efficient technology, which isadopted by almost all the major oil and gas companies of the world. This research paperevaluates the impact of digital drilling on reducing the inefficiencies of offshore drilling. Theresearcher has designed the research aims and objectives and framed the research questions.Based on that, he has done literature review. With the knowledge gained, the researcher hasperformed secondary data analysis. He has used the thematic analysis under qualitative dataanalysis approach. Finally, he has linked the objectives of the study with the findings,highlighted the limitation of the study and made recommendations in the final chapter.
2DISSERTATIONTable of ContentsChapter 1: Introduction....................................................................................................................51.0 Introduction............................................................................................................................61.1 Background of the study........................................................................................................61.2 Research aim..........................................................................................................................81.3 Research objectives...............................................................................................................81.4 Research questions.................................................................................................................81.5 Problem statement.................................................................................................................91.6 Research Motivation..............................................................................................................91.7 Structure of the research......................................................................................................10Chapter 2: Literature Review.........................................................................................................112.0 Digital Drilling: Introduction...............................................................................................122.1 Benefits of digital drilling in offshore activities of oil and gas industry.............................132.2 Digital drilling in removing inefficiency in oil industry.....................................................16Chapter 3: Research Methodology................................................................................................193.0 Introduction..........................................................................................................................203.1 Research Method Outline....................................................................................................203.2 Research Philosophy............................................................................................................203.3 Research Approach..............................................................................................................213.4 Research Design..................................................................................................................21
3DISSERTATION3.5 Data collection process........................................................................................................213.6 Data analysis process...........................................................................................................22Chapter 4: Data analysis, Results and Discussion.........................................................................244.0 Introduction..........................................................................................................................254.1 Qualitative Research............................................................................................................254.2 Thematic analysis................................................................................................................264.2.1 Advantages of Digital drilling......................................................................................274.2.2 Challenges face by digitalization in the oil and gas industry.......................................294.2.3 Scope of digital drilling in oil and gas industry............................................................314.2.4 Company statistics........................................................................................................324.2.5 Trends of digitalization in the oil and gas industry......................................................36Chapter 5: Conclusion and Recommendations..............................................................................395.0 Introduction..........................................................................................................................405.1 Linking with objectives.......................................................................................................425.1.1 To critically evaluate the impacts of digital drilling on the operations of the oil and gascompanies..............................................................................................................................425.1.2 To examine the types of inefficiencies that can occur in offshore drilling activities ofthe oil and gas industry..........................................................................................................425.1.3 To find out the advancement of technology in this sector and its pros and cons.........43
4DISSERTATION5.1.4 To find out the implementation of digital drilling on the offshore drilling operations ofthe oil and gas companies......................................................................................................435.2 Recommendations................................................................................................................445.3 Research Limitations...........................................................................................................455.4 Future Scope of the Study....................................................................................................46References.....................................................................................................................................47
5DISSERTATIONChapter 1: Introduction
6DISSERTATION1.0 IntroductionThe purpose of the following research paper is to critically evaluate the impacts of digitaldrilling in minimizing the inefficiencies of offshore drilling activities in the oil and gas industry.The oil and gas industry is one of the major industries of the world. It explores the oil and gasresources and supplies the energy to the world. The resources are located majorly in the MiddleEast. 80% of the oil reserves are mainly controlled by the national oil companies (Kelland 2014).The developed countries are the major consumers of the oil and gas reserves. To control thereserves and unify the oil polices, OPEC, that is, Organization of the Petroleum ExportingCountries was founded in Baghdad, Iran in 1960 and the headquarters was set up in Vienna,Austria in 1965. Since then, all the major decisions regarding oil and gas activities are designedand controlled by OPEC (Finšgar and Jackson 2014). The oil and gas industry is comprised ofmany big companies across the world and among them, the major companies are, Big Oil, SaudiAramco, NIOC, Qatar Petroleum, ExxonMobil, BP, Shell, Petro China etc. The oil and gasindustry of the world faces any problems, including, political risk, geological risk, price risk,supply and demand risks, and cost risks. This industry also faces technological issues. Theactivities are classified into onshore and offshore activities. The digital drilling is a type oftechnology used in offshore activities (Yusufet al. 2014). The research paper focuses on theinefficiencies of the offshore activities and how the digital drilling helps to minimize theinefficiencies in the oil and gas industry.
7DISSERTATION1.1 Background of the studyThe oil drilling is categorized in two types, onshore and offshore. This is done mainly onthe basis of location of the drilling. There are other differences also, such as, cost, equipment,profits, timelines etc. The offshore drilling takes place near the shores of the land in the oceanwater. More than 30% of the world’s oil production comes from offshore drilling (Ward et al.2014). The drilling activities take place in various depths of the ocean water, which enables thecompanies to access oil reservoirs at various depths. As the advancement of methods andtechnologies is happening, the drilling is going further deeper. With the help of the technology,the range of offshore drilling has reached 3000 meters underwater from 400 to 1500 meters.Offshore drilling needs stability, due to the depth of water (Khakzad, Khan and Amyotte 2013).There are various techniques used for this drilling, and there are some inefficiency in theseactivities. Productivity, planning, permit issue, material management are the areas, which getaffected by inefficiencies. The inefficiencies in the drilling activities also affect the productionvolume and productivity of the companies (Sneddon, Mearns and Flin 2013). The digital drilling is a new technological approach for automation of data in the oil andgas industry. It helps in cost efficient realization of the resources. It involves a software baseddecision making model with automation system, including benefits for cost-efficient drillingprocess. There is an uptake of this digitalization, leading to smoother integration, and applicationof real-time model-based systems in the field, accounting for the inherent uncertainty andcoupled risk that lies in drilling process control. Digital drilling helps in process planning,automation of drilling control and decision support. Hence, this is more of a data management
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