By Raul Coral, Bill Heath, Alejandro Gaffner, Alejandro Vanags, Juan Trebino, and Jaime Romero
To remain competitive, Upstream oil and gas companies of all sizes are increasingly realizing the need to deliver operational improvements as a means of achieving greater capital efficiency. Across the industry, many Upstream companies are turning to digitalization as a means of doing so.
Despite the transformation taking place across the industry, no single industrywide approach to digitalization has emerged. Instead, a mix of many different approaches and initiatives exists, each consisting of varying levels of value and maturity.
When assessing a digital portfolio, it is important that Upstream companies begin by reviewing their portfolio of initiatives for completeness and variety.
It is essential for Upstream companies to have an understanding of the full set of digital opportunities offered, the balanced portfolio of digital initiatives for their unique needs, and opportunities to eventually expand digital transformation beyond the core areas of the business.
This report discusses the array of key digital initiatives available to the oil and gas industry and how they are linked to value drivers. Rather than focus on a single initiative, a portfolio view of the various digital initiatives offered—along with their levels of value and maturity—is provided.
Regardless of the digital initiatives available, what each Upstream player chooses should ultimately depend on its unique needs. The framework outlined in this report will help management teams decide where to deploy resources and capital up-front, before allocating people, funds, and time.