Despite the age of big data, 71% of organizations still rely on a single data source to analyze asset performance and risk management – instead of drawing information from multiple sources for a more comprehensive view, reveals a report released by Lloyd’s Register.
The report, ‘Oil & Gas: Achieving operational excellence in uncertain times’ reveals the technologies US oil and gas companies currently use to manage and maintain their assets, and the methods they plan to adopt in the future.
Tim Bisley, SVP, Software at Lloyd’s Register, said, “Although organizations often collect vast amounts of data, they remain challenged as to how to use it. Predictive maintenance is reaching new levels thanks to AI, 3D digital twins and machine learning, which derive actionable insights from huge volumes of data. The report, however, indicates the industry has been slow to adopt this type of technology, in spite of the efficiencies it brings.”
The results reveal that only 39% of asset managers already implement advanced digital methods of maintenance and risk management, of which 26% are using risk-based inspection (RBI) and 13% are using reliability centered maintenance (RCM).
Bisley continued, “Achieving operational excellence is as important as ever for US businesses as they look to find ways to maintain growth in the face of any future volatility.
Extending asset life, reducing unplanned shutdowns and maximizing productivity remain top priorities for asset owners - from the production platform to the refinery. Organizations should use this period of relative price stability to digitalize and if necessary, re-evaluate their approach to asset risk and performance management if they want to unlock new levels of insight.”
With increasing operational complexity leading to greater operational risk, combined with continued uncertainty over the long-term stability of the industry, organizations face a drive towards a new operating environment. One balancing safety, cost and efficiency, while protecting themselves from any future price fluctuations.
Despite the finding, big data, AI and machine learning are the top digital technologies most likely to be considered by asset managers seeking to transform their asset performance and future proof their operations in the oil and gas sector.
According to data collected by Lloyd’s Register from its customer base, Asset Performance Management systems such as AllAssets are proven to reduce failure risk by 80% and achieve operational cost savings of up to 50%. Their impact could be transformational if companies can embrace advanced digital systems to provide a robust and adaptable option for the future of their assets.
100 asset managers in the US took part in the survey. The respondents represent a cross section of organizations across the oil and gas industry, with 58% from midstream and the rest split equally between upstream and downstream.