Making better use of existing technology can deliver serious returns—by increasing production, streamlining the supply chain, or reducing engineering time.
The computers in the offices of the average big oil company can find an additional $1 billion in value, if you let them.
Modern advanced-analytics programs are able to diagnose, sort, compare, and identify cost savings, or opportunities for increased production, in a manner beyond the capabilities of the average employee. The tools that allow you to do this have been available for several years, but adoption by the oil and gas industry has been slow. This is partly the result of the recent crash in oil prices, but competing internal IT projects and organizational reluctance to put in the effort required are also factors.
In this article, three stories are told. In each story, the average big oil company (AB Oil Co.) could realize $1 billion in cost savings or production increases by deploying technologies that exist today.
Source: mckinsey.com; March 2016