The Impact of Digital Transformation (Technology) In Improving Asset Integrity and Reliability in Oil and Gas Industry.

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Background Information

Engineering, big data and technological development are no strangers to the gas and oil (G&O) industry (Chandima and Markeset, 2012). Since the 1980s, Oil and Gas companies started to use digital technologies to better understand resource and production capacity in the reservoir, improve health and safety, and boost marginal operating efficiency on the world’s oil fields (Bello, 2017).

In the 1990s and early part of this century, a surge of virtual oilfield projects has engulfed most of the industries around the globe (Kumar, 2009). Nonetheless, the industry has neglected to use the opportunities that result from the effective use of information and technology for most of this decade.

Other capital-intensive sectors (such as aviation and automobile companies) have revolutionised their market and operating structures by introducing digital technologies. The possibility has become easier for the G&O sector to harness the transformative effect of digitalisation (Martin, and MacNaughton, 2004).

Angola has, after Iraq, the world’s least diversified economy, with around 95% of its products being crude oil. No less than 80% of the country’s consumables are imported (Ratnayake, 2010). The National Bank’s foreign currency is limited; the Kwanza dramatically diminishes, and the shop shelves are empty, while the gas price has increased (Chandima and Markeset, 2012).

Because overall, cost reductions in industrial activities across Africa and the technology sector have decelerated greatly. There seems to be no emphasis on East Africa as much as in the last few years.

Businesses tend to spend their limited capital assets in countries with developed wealth and adequate (if not beneficial) fiscal conditions. While upstream operations are sluggish, Africa has many stakeholders supplying energy solutions (Bello, 2017). Several donor funds are in the process of bringing electricity and gas to people in need across the continent.

Rationale

The rising consensus is that the G&A industry is becoming the centre of the current era. The second wave of the market and digital technology, powered by a range of macroeconomic, industrial and technical developments, would revitalise the oil and gas industry (Bello, 2017).

Power Africa is a USAID led initiative to increase Africans ‘ access to electricity by adding over 60 million new electricity connections to a new and cleaner generation with 30,000 megawatts (Kraemer and Wamae, 2010). One choice for a cleaner energy supply in Africa is natural gas-fired power plants.

Currently, “1.2 trillion cubic feet” (TCF) of gas are flaring Africa annually (Bello, 2017). It is almost half the fuel production on the continent, and therefore resources are not scarce (Jegede, 2012).

The multiple oil discoveries made on the continent recently would be an excellent way to monetise gas to power solutions. The oil and gas sector has several other developments trends in the process.

Demand for technological innovation has been developed with a constant focus on cost reduction. Whether the virtual oilfield is more comprehensive or drone-based, innovation is essential to reduce cost and increase operational efficiency in the conduit for offshore pipeline inspections.

An abundance of oil and gas is not a guarantee of economic prosperity in the long run. Nevertheless, entities and nations should seek to ensure sustainable growth by releasing demanding capital and economically regenerating their funnels to sustain production and connected supply chains (Jegede, 2012).

They must also strive to increase the productivity and output of resources, reduce costs, stop the products sweating, and produce the highest value of all hydrocarbons produced in a sustainable, safe and reliable manner. Digital innovation will create enormous value both for enterprises and for the whole of society (Bello, 2017).

Such a transition would take companies, backed by the CEO and management staff and a philosophy of innovation and technology acceptance, to focus on digital strategy. Investment and dedication are required to reform and upgrade procedures, structures, and frameworks and cooperate throughout the community (Inkpen and Moffett, 2011).

All the enablers required for product development will have to come into play for the company to harness the true potential of digital technology.

Aim

• To identify, highlight and reflect the trends in technological innovation in Angola.
• To identify the asset integrity of products and services provided by organisations.
• To evaluate the motivating forces for the development of new technologies and solutions.
• To highlight technology processes from the oil and gas service providers ‘ point of view.
• To measure considerations and obstacles to progress in producing innovative technological solutions in the organisation in Angola.

Objectives

• What are the trends in technological innovation in Angola?
• What is the asset integrity of products and services provided by organisations?
• What are the motivating forces for the development of new technologies and solutions?
• What are obstacles to progress in the production of innovative technological solutions in the organisation of Angola?

Methodology

The study would be primary qualitative research performed through a detailed literature review and a market survey. Interviews would be conducted with providers of oil and gas services in Angola. The objective of the survey would be to identify, highlight and reflect the trends in technological innovation in the country.

Evidence will be obtained from experts on asset integrity based on the questionnaire. The study scope would include questions about the products and services provided by these organisations, motivating forces for the development of new technologies/solutions, technology processes as observed by the view of the G&A service provider, viability considerations and obstacles to progress in the production of innovative solutions for Organization Operators.

Consequently, the thematic analysis would conceptualise information from case studies, which may have limited results and deductions from the questionnaire due to the quality of the data. The experts must record their views. The information will be analysed thematically during the scheduled interview sessions to highlight current status, patterns and challenges while developing new services and products.

Expected Contributions

This research would be an asset in the potential of innovative work systems. It would include sufficient information and human intelligence to analyse such data to provide an objective framework for future decisions and solutions (Inkpen and Moffett, 2011).

Many executives are never taught to be creative or guide the organisation to be more successful. They may recognise that they play an important role in development but not realise the processes to systematically develop new and better solutions.

Risk Analysis

Limited knowledge is one of the main shortcomings in developing new G&O products and services. The limited workforce available to both the operators and G&O suppliers in Angola has become a challenge.

A new trend to fill the void is based on qualifications in Africa which pose new challenges to itself. Engineering and information technology (I.T.) is necessary competencies (Inkpen and Moffett, 2011). Management strategy and corporate policies are also among the gaps that need to be filled.

Gant Chart

References

Bello, T., 2017. Traumatic Maladies in Petroleum Industry: Integrity Management as a Panacea. Available at SSRN 3067270.

Chandima Ratnayake, R.M. and Markeset, T., 2012. Asset integrity management for sustainable industrial operations: measuring the performance. International Journal of Sustainable Engineering, 5(2), pp.145-158.

Inkpen, A.C. and Moffett, M.H., 2011. The global oil & gas industry: management, strategy & finance. PennWell Books.

Jegede, O.O., Ilori, M.O., Sonibare, J.A., Oluwale, B.A. and Siyanbola, W.O., 2012. An overview of innovation intensity in the indigenous oilfield services firms in Nigeria. Journal of Management, 2(5), pp.214-220.

Kadiri, O.O., Raza, J. and Liyanage, J.P., 2015. Current Status and Innovative Trends of Asset Integrity Management (AIM): Products & Services in the Norwegian Oil and Gas Industry. In Engineering Asset Management-Systems, Professional Practices and Certification (pp. 509-519). Springer, Cham.

Kraemer-Mbula, E. and Wamae, W., 2010. I am adapting the innovation systems framework to Sub-Saharan Africa.

Kumar, R., Singh Panesar, S. and Markeset, T., 2009. Development of technical integrity management services–a concept. Journal of Quality in Maintenance Engineering, 15(3), pp.271-284.

Martin, J.G. and MacNaughton, A.L., 2004. Sustainable Development: Impacts of Current Trends on Oil and Gas Development. J. laND resourCes & eNvTl. l., 24, p.257.

Ratnayake, R.C., 2010. Asset integrity management: operationalising sustainability concerns. In Handbook on business information systems (pp. 323-357).