According to the recently published 2019 OPEC World Oil Outlook, primary energy demand is set to expand by a robust 25 per cent between 2018 and 2040. It is predicted that all forms of energies will be required in the future to help meet expanding demand. According to the outlook, natural gas is expected to witness the largest demand growth in absolute terms, and renewables the largest growth in percentage terms.
Oil is expected to remain the fuel with the largest share in the energy mix over the forecast period. Oil demand is predicted to reach 110.6 million barrels per day (mb/d) by 2040, with the non- OCED driving most of that oil demand with a growth of 21.4 mb/d between 2018 and 2040.
If oil and gas operators aim to meet this overall expected demand, they must ensure that their key assets – whether they be drilling rigs, offshore platforms and wells in the upstream segment or pipelines, LNG terminals, and refineries in the midstream and downstream segments – perform their required function safely, effectively and efficiently to reduce costly periods of downtime. To ensure they are doing so, operators should consider implementing some form of dedicated asset management software.
WHY USE ASSET MANAGEMENT SOFTWARE?
Sometimes asset data can be stored in a variety of different places, such as engineering design systems, asset registers, PDFs and/or numerous spreadsheets. Potentially even without an operator realising it, this data could be inconsistent, incomplete, or out-of-date across various locations. A multitude of problems can arise from poor information, namely unnecessary accidents, failures, or production delay due to unexpected shutdowns.
While there are a variety of different types of asset management software available on the market today for the benefit of oil and gas operators, most standard asset management software is intended to help a company simplify their asset tracking by storing the vast amounts of asset and equipment information in one single system.
This assists operators to quickly identify what equipment they have, know where assets are located, and automatically track equipment maintenance costs – so they can make immediate, informed business decisions.
WHAT TO LOOK FOR IN AN ASSET MANAGEMENT SOLUTION
Prior to selecting an asset management solution, one should have a basic understanding of what the company’s current asset management capabilities are, where the company aims to be in the future, and how it can get there. The purpose of an asset management solution is to effectively help manage the assets, improve visibility of assets, ensure optimum utilisation of assets and ensure compliance with regulatory requirements.
According to IDC Energy Insights, there are many key differentiators that distinguish a well-thought-out asset management solution. The ability to expedite change management, support for industry standards such as ISO 55000, and reliability analysis to show projected life span and failure dates are among the top features.
Other important features include the ability to extend the full functionality of applications to mobile devices and the flexibility of deployment. This can reduce system administration complexities and drive out costs, and ease the integration with asset monitoring devices and technologies.
It is important to remember that implementing a new asset management plan or software for oil and gas operations will require careful planning and custom-fit strategies. Industry specialists can guide the way and address any concerns that a company may have.
Sources: Operational Performance in the Oil and Gas Industry through Asset Integrity Management, Bentley; The Role of Predictive Analytics in Asset Optimization for the Oil and Gas Industry, Rick Nicholson et al.;
Asset Management in the Oil and Gas Industry, Chris Niven Research Director, Oil and Gas, IDC Energy Insights
