Digital transformation is inevitable for the oil and gas industry to efficiently and sustainably address the challenges that global dual carbon goals are bringing in energy sector and also in the economic structure of energy-producing nations which are now driving changes in production technologies and lifestyles.
This is according to Leo Zhang, Director of Energy Department, Huawei South Africa Region in the build-up to the 5th edition of the Nigeria International Energy Summit, which will hold in Abuja from February 27 to March 3, 2002, convened by the Federal Government of Nigeria and hosted by the NNPC.
Huawei will, at the event, be discussing how to overcome the crisis and challenges of data to barrel in the oil and gas industry, with policy-makers and industry leaders as well as Huaweiâ€™s latest plans for the oil and gas industry in Africa.
â€œAccording to BPâ€™s Energy Outlook 2020, global demand for primary energy will only continue to grow, and oil and gas will remain the primary energy source until 2035. Although the share of oil and gas consumption in all energy sources will decrease after that point, the total volume consumed will remain relatively stable. We are confident about the future of the oil and gas industry.
â€œAt the same time, we should be aware that oil and gas companies still face significant challenges. First, in the context of the dual carbon goals, energy companies need to produce more energy at lower costs, while reducing carbon emissions. Second, oil and gas exploration targets are becoming increasingly difficult to achieve with proven resources often falling short.
â€œThird, newly discovered oil and gas reserves are difficult to produce, which requires advanced exploitation technology. Fourth, in the medium and long term, the global oil and gas supply is already relatively sufficient to meet demand, which means that low and medium oil prices will remain,â€ Zhang said.
The NIES is the official energy meeting of the Federal Republic of Nigeria. It was formerly known as the Nigerian International Petroleum Summit.
The theme of this yearâ€™s event is â€œRevitalising the Industry: Future fuels and Energy Transitionâ€.
â€œHuawei oil and gas IoT is fueling the future of the industry with intelligent applications, intelligent hubs, intelligent connectivity, and intelligent interaction.
â€œDigital transformation is inevitable if the industry is to address these challenges efficiently and sustainably. Realizing such change brings significant opportunities to oil and gas companies. Digital transformation can drive the reconstruction of business and management models as well as facilitate the innovation of new models entirely. Ultimately, digitalization helps oil and gas companies evolve and increase their value.
â€œThe oil and gas industry needs to further integrate digital technologies and fully realize its digital transformation goals to boost reserves and production, improve quality and efficiency, and reduce carbon emissions.
â€œThe industry has several requirements to make this transition. Transformation necessitates a full-stack cloud platform, which can help energy companies migrate key business processes to the cloud and gain intelligence. Effective data governance is also needed. Data generated by the industry is high in volume and complexity.
â€œThe digital and intelligent development of the global oil and gas industry is still in its infancy. The key fields being explored in the industry include smart exploration, smart oil and gas fields, smart pipe networks, smart refining and chemicals, and smart sales,â€ Zhang concluded.