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Time for the

‘new oil order’ The phrase has been coined by some analysts to refer to the current, transformative era of global competition in the oil and gas industry to refer to the challenge in this new unpredictable era: to optimise and connect upstream, midstream and downstream operations. HE OIL AND gas industry has entered a landmark era of global competition rife with fluctuations, as the global oil and gas landscape continues to shift, leaving much uncertainty for economic projections. In 2014, American crude and natural gasliquids production rose to an annual average of 11.7mn bpd, exceeding Saudi Arabia’s output (11.6mn bpd). In 2014 it was predicted this trend would continue, but less than a year later, the market saw rapid constriction as oil prices plunged. Today, energy markets continue to experience instability. Despite the downward price pressure triggered by the current supply, producers from Brazil to Bahrain have plenty of reason to keep pumping. The world’s appetite for energy is expected to increase 37 percent by 2040, according to the IEA. European dependence on gas imports is expected to continue to fuel LNG markets. More significantly, improving living standards in growing economies like India and China will increase the need for more output. The implications of this new oil order extend far beyond the latest fluctuations in the global cost of a barrel. On a global scale, we face major challenges such as growing complexity of operations, increasing

plants in the data-driven age are extensive. He says, “The tools at the disposal of the most forward looking companies include, for example, process surveillance technologies, data analysis engines and applications, and workflow optimisation techniques. And that’s just the beginning – new controls, drives, and safety enabled technologies play a part, while remote management of assets becomes a reality. Importantly, all of these tools can be comprehensively connected at enterprise-level collaboration platforms.”

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Oil and gas is arguably the world’s most asset-intensive industry, and every additional wellhead, pump and compressor raises a company’s operational risk. (Photo: curraheeshutter/Shutterstock)

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Issue 7 2016

Thony Brito, regional sales manager, Rockwell Automation Middle East

regulatory pressures, growing skills gap and heightened security risks. Oil and gas is arguably the world’s most asset-intensive industry, and every additional wellhead, pump and compressor raises a company’s operational risk. Upstream production is increasingly fragmented because new reserves often lie in far-flung locations. This, coupled with the unprecedented surge in supply, has put new pressures on the midstream market, increasing the need for more and safer pipelines, and other types of petroleum transport and storage. Finally, refineries are facing unprecedented process changes as they adapt to distilling fuels and other products from more and different feed stocks. These dynamics – combined with tightening environmental regulations globally and a shrinking pool of skilled, in-house expertise – are forcing oil and gas companies to find new ways to enhance recovery, optimise processes, increase efficiencies and contain costs. Thony Brito, regional sales manager of Rockwell Automation, Middle East believes that the opportunities for improving existing

The world’s appetite for energy is expected to increase 37 percent by 2040, according to the IEA Rockwell’s oil and gas sales director for North America, Rick Di Danieli agrees. “A connected production environment improves energy usage, equipment reliability and longevity, and provides expanded capacity from existing assets. At the same time, automating maintenance through the use of connected assets can increase efficiency and minimise the risk of catastrophic failures and process disruptions, while maximising equipment reliability.” The answer to tackling the current challenges lies in harnessing the collective power of people, technology and processes using a unified network architecture. Integrated control and information solutions enable oil and gas customers to build a connected infrastructure across the enterprise that meets the requirements of the automation layer and information layer, while providing complete connectivity and integration of data. n Rockwell will be showcasing its ConnectedProduction solutions at ADIPEC, on Stand 1230, Hall 1

Profile for Alain Charles Publishing

Oil Review Middle East 7 2016  

Oil Review Middle East 7 2016