Here we are at the end of what is sure to go down in history as perhaps the most challenging year for oil and gas. To be sure, the industry’s troubles are just a fraction of what ails the world right now as we continue to battle through the global COVID-19 pandemic. But we’re talking shop here, so I’ll just stick to the path ahead for oil and gas.
While little is certain in the industry for 2021 and beyond, one thing we do know is there won’t be success without collaboration and innovation. If 2020 has taught us anything, going it alone is a dangerous game to play. Luckily, there’s no need to isolate when the technology that makes for better efficiency and profitability is readily available.
That was the theme of a panel I was invited to moderate for Schlumberger’s recent virtual conference. I had the opportunity to chat with Schlumberger’s Hinda Gharbi, executive vice president of services and equipment, and Khaled Al Mogharbel, executive vice president of geographies, about the new way of life for oil and gas fields around the globe. What became most apparent to me during our conversation is that producers must find ways to hasten the move toward a more efficient and profitable operation, and service providers are able to make those happen through digitalization.
“We’ve seen our customers becoming much more cautious about capital and returns on their investment. We’ve seen them focus on efficiency, cost and how digitalization plays a big role in that,” Al Mogharbel said during the panel.
That’s why Schlumberger has worked on its strategy to deliver technology and solutions to its customers. “We redesigned everything in our organization to work around their workflows,” Gharbi added. “The idea is to enable system integration … ultimately, we’re looking for efficiency and cost [management] for the customer. It’s all about working in a new way.”
With capital management sure to be at the forefront of operations going forward—no one wants to be caught by another surprise demand destruction event like what happened this year—digitalization is sure to be the talk of 2021. And, as Gharbi pointed out, it creates an opportunity to “change how we work at the well site.”
Of course, with new ways comes new fears. As the old saying goes, no one likes change. But change you must.
“I think [operators] worry about the security of the data. But, I think we have worked our way through that,” Gharbi said, reassuring those watching that service providers like Schlumberger are up to the task.
“For [producers] to accelerate, they need to be comfortable with the kind of digital infrastructure that we’ll subscribe to,” she continued. “There is now increasingly flexible platforms. And, they can innovate. No one wants to be locked in in this digital space because the cycle of innovation is very, very fast.”
Al Mogharbel encouraged producers to embrace the opportunities digitalization offers. “It brings efficiency to us and it brings efficiency to our customers. So that’s where digital should play. It should create value,” he said.
In this day and age, it almost seems odd to be extolling the virtues of digitalization. After all, most of us spent the majority of 2020 living in a digital reality due to COVID-19. While I hope we all get out of the house more often in 2021, the digital future for oil and gas is no longer a concept. If you’re not embracing it already, it might just be passing you by.
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