IRO EY Oil and gas industry forecast

Transcription

1 IRO EY Oil and gas industry forecast Digital oil company of the future Presented By: Fay Shong, EY Global Oil & Gas Digital

2 Setting the stage Oil and gas historically lags behind others in average annual returns Average annual return on operational assets by industry % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1st 2nd 3rd 4th Oil and gas Aerospace and defense Airlines Automotive manufacturing Cable and satellite Diversified mining and metals Companies in quartiles by asset intensity Hotels Tech semiconductor Telecom service Source: public data and EY analysis ROA calculated as: Net Income/Total Assets, Asset intensity calculated as: operating assets/total sales Page 2

3 What s going on now Downturn in the price of oil & gas coincides with low prices for hardware and major advances in digital technology Tech cost index ($) WTI Price Era 1: Efficiency mattered, technology cost too high Era 2: Focus on output, technology costs decline Era 3: IPv6 Major adoption Big data goes mainstream US cell phone adoption exceeds 50% Myspace and Linkedin launch BYOD goes mainstream Cloud and managed services goes mainstream Cushing, OK WTI Spot Price FOB (Dollars per Barrel) Technology Costs WTI Price Source: U.S. Energy Information Administration Independent Statistics & Analysis Technology Cost Source: Publicly available data from leading technology researchers, the Federal Reserve Board, and U.S. Bureau of Labor Statistics Page 3

4 What s going on now What types of digital investment make the most sense for oil & gas companies? Robotic process automation Asset performance management OT cybersecurity ERP Mobile Blockchain Cloud Digital supply chain Machine learning Predicative analytics Field ticketing Page 4

5 How do we see it being used? To monitor remote operations Operational flexibility Block A and B In country Block C Block D Exports Today Block E Cybersecurity Layer Optimize production composition into the plant Monitor critical equipment to predict plant maintenance Monitor off-take plant to optimize production mix Page 5

6 How do we see it being used? To reduce cycle time Real-world cycle time: Down equipment, identify requisition Part arrives at default dock holding Wait for next resupply run Arrival at correct rig in milk run 10+ days 3 days 24 hours + 5 days 1-day Install Digital-enabled process time: Identify failing part Order best positioned part for boat routing Boat & part intersect at dock for hot pickup Boat routed directly to rig Part installed before downtime <50 Hours 15 minutes 1 day 2 hours 1 day Predictive analytics Automated routing 3-D print spare part network planning Confirm & close ticket Collaboration platform Page 6

7 Downstream How do we see it being used? To connect operating assets Refineries Onshore wells Offshore platforms Page 7

8 What s coming next IT OT convergence Gas Production Processing Access Control Data Services Finance & Accounting Logistics Capital planning Sourcing Transportation Gateway Contractors CRM Human Resources Maintenance Order to cash Invoicing Project Management Engineering Oil Production Storage and handling Purchasing Scenario planning Business strategy Portfolio planning Connected assets and resources IT environment Cloud integration and process choreography The cloud integration layer can coordinate all these entities through a single business process to optimize the end-to-end value chain to drive a specific financial result Page 8

9 What s coming next Road map to a digitally enabled integrated value chain and higher ROCE Industrial Internet of Things Stand Up IIOT platform Connect critical assets Create operational platform Enable process automation Extend to Supply Chain Connect external sources Connect portfolio enterprise Connected resources Connected enterprise Connected assets Connected operations Connected value chain Page 9

10 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com EYGM Limited. All Rights Reserved. EYG no Gbl BMC Agency GA 0000_10222 ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice. ey.com