Citation :

Sharon Campbell-Phillips, "A Critical Assessment of Digital Oilfield Implementations in the Middle-East," International Journal of Recent Engineering Science (IJRES), vol. 7, no. 3, pp. 81-96, 2020. Crossref, https://doi.org/10.14445/23497157/IJRES-V7I3P114

Abstract

The digital era brings several enabling technologies such as Internet of Things, mobile and wireless technology networks. This along with the low cost of oil and gas are forcing Oil and Gas companies particularly, in the Middle-East to invest in Digital Oil Fields. These Digital Oilfields fundamentally change the way oil companies operate and allow them to benefit by increasing operational efficiency and increasing production. The purpose of this paper is to investigate the technologies that make up a Digital Oilfield, look at the benefits and the challenges of implementing Digital Oilfields. The research for this paper used a systematic review, where a methodical approach was used to collect secondary data from journal articles and conference proceedings. Digital Oilfields use technology such as improved sensors; mobile and wireless networks, internet of things, large storage capacity and advance analytical and modelling software. They integrate these technologies in a layered approach to increase operational excellence and production. Oil and Gas companies also benefit by improving the organizational learning and breaking down silos so information is easily accessed. This enables a creative and innovative culture and creates a competitive advantage that is not easily imitated. Although Digital Oilfields Present Oil and Gas Companies with many benefits, they may face challenges during and after implementation. Due to Digital Oilfield’s changing the way Oil and Gas operate there may be changes in the organization structure. During the implementation project management needs to be effective and the governance of data and workflows must be enforced. Effective leadership is needed to ensure that there is a necessary change in the culture of the organization. There should be further research to examine how the implementation of Digital Oilfields affect the lifestyles of employees and other benefits and challenges that might occurallowing oil companies to invest in Digital Oilfields (DOF’s) because of the automated approach to data management, routine tasks in obtaining oil field production, instrumentation and equipment data. These new approaches lead to higher operational efficiencies, lower overheads and improved production which can lower OPEX and CAPEX for future investments (Gauder, et al., 2017). Research on the Digital Oilfield is noteworthy and relevant as the business model of Oil Companies change and they have to overcome new challenges such as Major Skills Shortage in the Oil and Gas Industry; Oil and Gas discoveries in remote locations; Changing Technology Landscape; Reducing the HSE Risk; Improving Operational Efficiency and Fluctuation of Oil and Gas Prices (Udofia & Obong, 2018). Moon, (2009) agrees that DOF’s can help increase operational efficiency; operational cost reduction; reduction in capital expenses and increased reserves.

Keywords

Digital Oilfield, the Middle-East

References

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