(1)   Digital Transformation Trend of Energy Industry

In recent years, significant changes are taking place in global energy industry, and the challenges faced by the development of conventional oil and gas industry are becoming increasingly prominent. Facing this new situation, world’s leading oil companies are accelerating digital transformation, illustrating new trends and characteristics:

Firstly, digital transformation has been emphasized as part of the company’s development strategy. Secondly, enterprises are actively conducting interdisciplinary cooperation to promote digital transformation. Thirdly, oil companies are increasing investment in digital part to promote the exploration and application of new digital technology in the industry.

According to JP Morgan analysis, the potential cost savings from digital transformation of large oil companies will amount to around US $300 billion per year.

(2)   Application and Practice of Digital Transformation

The research towards industry’s leading digital practice illustrated that, at present, the major leading oil companies mainly focus on building four digital capabilities: business insight, intelligent control, collaborative sharing and interconnected innovation. They are actively conducting innovative digital applications, promoting transformation of conventional production and management.

1)      Business Insight

Establishing production IoT and big data analysis applications, collecting production data timely, mining deeper in data value, to support and enhance business insight.

2)      Intelligent Control

Building real-time remote intelligent controlling application, achieving autonomous optimization to ensure safe and efficient production and operation.

3)      Collaborative Sharing               

Cultivating integrated and collaborative capability for business operation, promoting the integration and sharing of data, knowledge and other resources to realize interdepartmental, interdisciplinary and inter-regional business collaborative operation.

4)      Interconnected Innovation

Creating multi-dimensional connection between internal and external resources to achieve business transformation and service innovation, further enhancing enterprise value.