Digital innovations

Digital innovations

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  DigitalInnovations DigitalInnovations July 2018
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  DigitalInnovations Digitalinnovationsarevisibleintheoilandgasindustry 1Confidential 1 2 3 4 5 6 What is “digital”? Howare digital building blocks growing? What is the scale of impact, timing of impacts? Which digital technologies will have the greatest effect? How are digital technologies combining? What new business models are emerging?
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  DigitalInnovations Something“digital”combinesdata,analyticsandcommunicationsintoaproduct, serviceand/ornewbusinessmodel* • Things -pumps, valves, motors • Devices - smart phones, cameras, appliances • Robots - drones, submersibles, vehicles • Services - cloud computing, video streaming • Economies: • sharing (Car2Go, AirBnB) • gig (Fiverr, TaskRabbit) • asset (Apple Music, apps) • services (dog walking) • trading (data, IP, money) 1Confidential * IEA, November 2017
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  DigitalInnovations Digitalbuildingblocksaregrowingexponentially Apple watch =Cray Supercomputer Power consumption falling 2016 - 8b sensors 2020 - 20b sensor Open source 1Confidential 2015-2016: 90% of all data ever recorded and stored 1 flight = 1 terabyte North West Refining - 25000 sensors 7.7 b mobile phone subscriptions 1 terabyte/month - 1974 Internet traffic 1 terabyte/second - 2016 internet traffic Data Analytics Communications
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  DigitalInnovations Thetimingofimpact(“fuse”)andsizeofimpact(“bang”)willvarybysector 1Confidential Short Fuse LongFuse • Long life real assets • Long dated contracts • Digital assets • Consumer oriented • Light volume • Real assets, digital overlay • Industrial oriented • Heavy volume • Mature digital technology Small Bang Big Bang
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  DigitalInnovations Oilandgastendstowardtodelayedtimingandsmallerimpacts Short Fuse LongFuse Technology Supplier Service Provider Retailer Explorer, producer Midstream, pipeline Small Bang Big Bang
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  DigitalInnovations Thoughtleadershighlightanumberofdigitalinnovationsimpacting inoiland gas,logistics,andassetintensiveindustries AI ArtificialIntelligenceprograms,whichemploymachine-learningtosolveproblems. IncludesAnalytics,Automationandrobotics APIApplicationProgrammingInterface;simplifiesprogrammingandapplication-building BC Blockchaininfrastructure CC CloudComputing;datastoredonaremoteserveror“cloud” Games VideoGamesforcoachingortraining IoT InternetofThings.Allowsonlinedevicestoberemote-controlledviathe“cloud” Smart Smart:smartdevices,suchassmartphones,sensorsandAIplatforms.Includes wearables 3D Threedimensionalmappingand/or3Dprinting
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  DigitalInnovations Transportationandmaintenanceareparticularlyactiveinadoptingdigital innovations InAllSources NotMentionedInMost Sources In2-3 Sources Mentioned Once
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  DigitalInnovations “InternetofThings”sensorsproducedata • Low costand falling to zero • Rapid growth in numbers • Susceptible to attack • Constrained by networks • Added to things, people 1Confidential • LIDAR, GPS, BIM • High definition • Mines creating central control rooms • Small number of digitally literate worker on site
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  DigitalInnovations Cloudcomputingstoresthedata • Base platformfor most other digital innovations (data density) • Internet-accessible shareable compute and data storage • Secure, rapid scale up, down • Transforms software distribution • Strands proprietary in-house solutions, data centers 1Confidential • CIA fully shifted to cloud • Hess • Real time sharing • New business models • Fully paperless • eDesign and 3D printing to speed up
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  DigitalInnovations ArtificialIntelligencereadsthedata • Cognitive skillsthrough computers • Visual perception, language processing, environment manipulation, tools • Augment human decision making • Data analysis and interpretation • Remove automated supervision • Applications in robots • Digital twins of assets (3D, 4D - budget, 5D - schedule) • Teaching the machine 1Confidential • IBM Watson at Woodside, Plains, Suncor • Contract interpretation • Predictive maintenance • +100k document handling • 3D platform modelling
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  DigitalInnovations Robotsapplythedata • Remote-controlled unmanned vehicle •Aerial, surface, subsurface, sea, subsea, space • Targeting dangerous, costly, routine work • 3D scan of sites to produce better job insight • Driving, diving, operating • Anything with a human operator • Heavy haulers, trains, trucking • Autonomous rigs • geo-scouts • Mindtree - 300 “bots” • Robo-advisors • Robotic process automation • Engineering document control
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  DigitalInnovations Blockchaincreatestrustinthedataandtherobots • Combines encryption,cloud computing to enable trust • Immutable, distributed, decentralise • ATOMIC - Assets, trust, ownership, money, identity, contract • Trading - low friction, cost • Tracking - supply chain • Enables agency in things - drones • Use cases - pork, diamonds, assays, art, cars • Underpins sharing economy • Basis for crypto economy • Creates new business models
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  DigitalInnovations Additivemanufacturingprintstheparts • 3D design,spray nozzle, object build up • Collaborative designs - design, engineering, print, packaging, materials • 3D scanned environments to produce tools, jigs, parts, alignment • Exponential improvements in cost/performance • Low waste, lighter, nimble, lower carbon, fewer parts, more intricate • Tires, eyeglasses, shoes, food, toys, art, buildings, bridges, parts, weapons • Shared paperless designs • Supply chain transformation and fuel reduction
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  DigitalInnovations DigitalRealityhelpshumanstodesigntheoverallsolution • Augmented reality,mixed reality, virtual reality • Integrate with geocodes to work with unseen assets • Collaborative maintenance and support • Heads, tablets required • IoT and MR working together • Aeronautics - tool tips, analysis aids • Mercedes auto plants • Use cases in design, training, build, debottlenecking, assembly • Google Glass
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  DigitalInnovations EnterpriseResourcePlanningprovidesthecommercialplatform • High qualitydata required to enable digital • Moving to the cloud • Cloud-based in-memory data storage • Enabling mobility, off-line access • Flat database design • Single database architecture • Direct connections with devices, things • Redesign of back office work • Fully paperless • Integration with operations technology
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  DigitalInnovations Combiningtechnologiestoworktogetherseemstobekeytoachievingbreakoutgains Industrial grade Boeingdrones Onboard sensors - LIDAR API integration to SAP, Maximo, land AI to read JV contracts RPA to create royalty calculation Blockchain to create smart contract for payment Sensors on turbine Edge computing to run asset Cloud computing to collect data GE Predix to provide AI data analysis NAL Royalties Shell Drones GE Turbines 1 field tech/10 wells -> 1 field tech/150 1 drone -> 150 well inspections/night 800 seconds/contract -> 90 Business volume double, no opex growth 50+ FTE in contract admin eliminated AP eliminated New businesses - turbines as a service Customer lock in Product enhancements
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  DigitalInnovations industryincumbentsareatriskofdisruption Digitalinnovationsareunlockingnewbusinessmodels Resource Value Aggregation ofresource data by smaller players in the cloud allows smaller players access to similar services as larger players. 02 01 Asset Ownership GE predix enables subscriptions for assets by separating ownership of asset from operating data about the asset, maintenance 04 03 05 06 Apps for Fuel Delivery Fuel delivery to a vehicle (rather than vehicle at a retail station) renders retail sites obsolete. Same with autonomous vehicles that self fuel. New financial assets Blockchain and internet of things transforms reliability and trust of data to create new financial asset classes (carbon, royalties, rentals) MOBI Autonomous devices on blockchain enable peer to peer transactions for fuel, parking, insurance. Robotics Autonomous haulers pay for themselves, but the big prize is in the digital twin of the end to end mine
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  DigitalInnovations