Releasing the analytical power of oil & gas talent
August 18, 2020
August 18, 2020
The industry’s best-kept secret may be that O&G players are perfectly positioned to take advantage of AI and machine learning (ML). The potential to unlock trapped value is significant across the exploration and production (E&P) value chain for three key reasons:
Since the 2014 downturn, the O&G industry has struggled to lower supply costs and reduce the long cycle times (latency) that have characterized E&P projects. AI/ML has the potential to resolve both these problems.
Our analysis shows the industry can reduce the cost of supply 30 to 50 percent and cut cycle times by multiple years when it employs advanced analytics in E&P decision making. Figure 1 shows the key capabilities analytics can enable.
Figure 1: Untapped value potential from analytics
O&G companies can unleash the full potential of advanced analytics by solving complexity problems and scaling solutions within the company.
Organizations that generate value from analytics do so primarily because all elements of the transformation constantly ask two questions:
Weaving an analytics mindset into the organizational DNA involves fundamental behavioral changes that address the factors illustrated in Figure 2.
Figure 2: Factors that influence the behavioral change required to adopt an analytics mindset
Talent management is a key ingredient for adapting and thriving in the new oil and gas landscape. But it also takes time and a true transformational mindset to build.
As with any transformational change, upskilling the workforce for advanced analytics will require deliberate planning and effort from all ranks of organizations, including leadership support and sponsorship.
How can O&G leaders approach analytics upskilling effectively?