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I think I am beginning to get the hang of this IT/Intelligent Energy thing. After moderating a couple of conference sessions, it may all be coming together for me. Up until this point, I have been like a penniless kid looking into a toy store window. There are lots of really exciting-looking things inside — and oh how I want to go in — but they are all out of my reach in terms of understanding. I suspect most of the industry has felt like this, and many still do.
At other times, I have felt like one of the five blind men trying to describe an elephant after having felt only one part of it. My understanding of the elephant is based on the trunk while yours may be based on a leg. I suspect many of you have felt, and may still feel, this way too. That is only natural.
IT/Intelligent Energy is a rapidly developing field, although its roots stretch back to the 1980s. In its final incarnation, it will be all encompassing, touching — nay managing — every aspect of our business. I think this is the hardest concept to both comprehend and accept — that something that has been an overlay on various parts of traditional operations and strategy will, in the near future, become the core enabler for all of our business activities.
After some thought, I think I may have figured out how this IT/Intelligent Energy colossus might look and function. It now appears to me that we will create one massive closed-loop system composed of a number of discrete closed-loop systems all interacting with one another. The smaller closed-loop systems that will comprise the larger closed-loop system will include exploration, drilling and production operations; human relations functions; HS&E functions; accounting functions; legal functions; and so forth. In other words, every discrete function necessary to carry on our business will comprise a closed-loop system that will then comprise one of the elements of the larger closed-loop system comprising our entire business structure.
From the conferences I have attended and participated in it has become clear that this system will not be put together rapidly or without serious differences of opinion. It also becomes apparent that a sizable portion of the industry has yet to buy in to, or, indeed, understand, what is developing. And, finally, it is also apparent that this massive system will be created; the synergies and efficiencies that it will deliver are far too great to be ignored.
A number of things will be required to make IT/Intelligent Energy a viable concept across the entire industry. First is coordination. We must work toward the same goal, and we must work toward developing compatible systems. Second is innovation. Much of what will comprise the intelligent solutions we need has yet to be fully developed and, where it is fully developed, its proper applications may not be understood.
The third requirement is integration. The systems the industry develops must integrate seamlessly, or the system will not work. And the final requirement is value creation. At each step of IT/Intelligent Energy development, the industry must create value. Running a massive IT research and development program that creates little if any value simply will not fly.
You may not agree with this assessment. That is to be expected as the IT/Intelligent Energy sector is still young and its options for development myriad. And, if you do not agree with this assessment, please let me know. I have not made it all the way in the door of the toy store yet.
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