MOBILITY TO REVOLUTIONISE THE OPERATIONAL ENVIRONMENT OF OILFIELDS?
There is no escaping the fact that with the oil price at its current level, the rise in non-economic fields and facilities is bringing forward decisions to decommission. But as operators limit investments and extend cuts to preserve revenue they are failing to address core operational issues. According to Oil & Gas IQ there is an almost 90% consensus that mobility will revolutionise the operational environment around oilfields and infrastructure. However, just over half believe that the depressed price of oil will directly impact the amount of money spent on mobility programmes, so there is a real threat if market predictions hold true that the pace of change could be hampered and slowed, at least until 2018.
Throughout the recession successful corporate organisations adopted two key battle strategies: they applied leaner processes and they invested their way out of recession. One strategy was to identify and then deploy technology that helped streamline processes and increase collaboration. Crucially much of this was outsourced, providing an alternative to the crippling capital expenditure which tethered organisations and reduced capability to adapt to a changing business environment. Right now the oil and gas industry is facing a very similar challenge, and it can take an early lead from those lessons already learned by other large enterprises.
Rather than closing or mothballing facilities, which is a short term solution, oil and gas companies can take a more proactive approach, maintaining installations in order to preserve both market reactivity and ongoing revenue streams. For this to be a realistic option requires operational costs to be lowered, crucially without impacting health and safety. With around 60% of oil and gas companies committing to roll out a mobility strategy the implication is that there remains recognition within the industry of the need for preserving live assets and making them work to their advantage. This is because they understand that communications technology represents a vital function in day to day operations and is increasingly a key tool for reducing downtime and meeting tough business goals created by market oversupply and falling oil prices.
As oil and gas producers examine how to improve the efficiency of their operation and evaluate whether they are 'fit for 50' (meaning operators are profitable at US$50/barrel), resolving to migrate to digital two-way radios and digitalising workflows are two cost effective, and rapid-to-deploy methods for improving operations. When a trusted vendor is engaged, there are also multiple opportunities to develop easier to manage OPEX driven strategies such as hosted or managed services, build own operate (BOO) or communications as a service (CaaS). In this way costs become more predictable, with an annualised spend that enables oil and gas producers to more consciously plan for new mobility strategies that can help focus efforts on enhancing operating efficiency, preserving margins and maintaining production that fulfils market demand.
To learn more about how Motorola Solutions can further support the oil and gas industry visit here.
If you’d like to join the conversation about how to maximise the efficiency of the digital oilfield in today's ever-changing environment, we’d be delighted to welcome you to the Motorola Solutions Community EMEA LinkedIn Group.
Tunde Willaims, Head of Field & Solutions Marketing, Europe & Africa, Motorola Solutions
Connect with Tunde on LinkedIn: https://www.linkedin.com/pub/olatunde-williams/5/282/67a