Merging IT With Energy
12 Nov 2007
IT Helps Energy Producers Tap Their Full Potential
From the oil well to the refinery to the corner service station, solid information technology (IT) systems are vital to the future success of the world's energy producers.
“Information technology is becoming a strategic tool,” said Ray Cline, vice president of the EDS Infrastructure Service Line and a former director of Information Systems at the American Petroleum Institute. “Coupling oil and gas companies' specific knowledge of the core business with the best in information technology offers a tremendous advantage.”
Oil and gas producers may gain improved efficiencies throughout the petroleum supply chain as well as an enhanced ability to manage exploration resources in remote parts of the world.
Integrating Modeling and Real-Time Data in the Energy Industry
Producers have long used predictive modeling to anticipate fuel consumption trends, alterations in global capacity and other significant changes in the marketplace. Likewise, the use of sensors to monitor variances throughout production and delivery processes is increasingly common. It's tying those and other data-centric practices together for improved visibility of the end-to-end supply chain that represents a new trend.
“The integration of modeling with real-time data and operations is a general theme across the industry,” Cline said. “It involves the increased use of modeling technology, the increased use of sensor technology and the integration of these technologies into one closed cycle.”
Merging technology with business strategy is key to maintaining a competitive edge in the energy sector. In particular, the ability to quickly collect and exploit real-time data as part of an informed decision-making process can yield significant benefits.
“Effectively using real-time data means using technology to figure out how you can meet your demand as well as meeting available opportunities in the market,” Cline said. “Examples exist in all elements of the oil and gas value chain. The upstream sector uses integrated digital oil field technologies to optimize field operations and production. The refining sector augments plant automation with data on market, logistics and feedstock availability to optimize efficiency. In the downstream industry, market, trading and logistics data are integrated to better exploit gasoline, gas and even convenience store inventories and profitability.”
With the right IT infrastructure supporting their operations, oil and gas producers may instantly monitor any number of factors that could impact their bottom line. For example, the improved availability of real-time data may offer assurances that field operations are actually keeping pace with demand. It may even be used to guarantee adequate supplies at the pump.
“The tank level at a certain gas station gets below a certain level. No one needs to make a phone call. The truck is already on its way,” Cline explained.
Aiding Exploration With Support for Remote Operations
As international demand for petroleum continues to grow, energy producers must expand their global reach in search of new oil and gas deposits.
“Demand is going to continue to increase. Supplies of hydrocarbon-based fuels are limited,” Cline said. “Companies must go to new locations to capture hydrocarbons or they must capture hydrocarbons from more difficult formations. All of these situations involve very complex processes.”
The need for a robust IT network capable of supporting remote operations becomes far more critical.
“Modeling and real-time sensors will only grow in importance,” Cline said. “The number and types of sources and distribution networks an energy provider must manage will only continue to grow.”
Fortunately, these problems are not new to EDS.
“We have already been where the oil companies want to go,” Cline said. “We're global, operating in 64 nations around the world and supporting operations in multiple countries beyond that. The oil companies themselves are in many of these locations and looking at remote operations technologies. We have already invested heavily in remote operations and management technology for our own service delivery, which could be leveraged to provide IT services and act as a foundation for core-business remote operations. Our offerings are designed to support this.”
Outsourcing to an Experienced IT Provider Makes Sense
Oil and gas companies have much to gain by partnering with an experienced IT provider.
“There's the obvious benefit of freeing your company to concentrate on its core business as opposed to devoting valuable time and resources to overseeing your own information technology needs,” Cline said. “What may be less obvious from an internal standpoint is the wealth of knowledge an experienced IT solutions company such as EDS can provide.
“As IT specialists we deal with a number of industries from retail operations to the high-tech companies themselves. We can bring those experiences together and give the client the expertise from those other industries,” he said.
Cline added that a strong IT partner can help to open doors for producers who are competing for access to nationalized oil and gas supplies. The host nation stands to benefit from the presence of improved technological know-how as well as the energy producer's wealth of expertise.
“Given that 70 percent of the world's petroleum reserves are controlled by national oil companies, our IT services and technology experience become potential added value for the company that may be negotiating to conduct business with those various national entities,” Cline said. “Our depth of knowledge becomes an asset the client company may use for leverage at the negotiating table.”
About Ray Cline
Raymond E. Cline, Jr. is vice president of the Infrastructure Service Line for EDS, where he is responsible for product development, product engineering and service delivery operations for all Infrastructure services. Previously, Cline was vice president of Portfolio Development – Infrastructure Portfolio, where he led product development and engineering for EDS IT infrastructure. Cline also served as vice president of EDS Innovation Integration, Portfolio Management, where he led the functional integration and coordination of advanced innovation initiatives with the company's global accounts, regional CTO network, EDS Fellows and EDS Agility Alliance members to deliver innovative solutions for clients based on new and emerging technologies.