Asset management solutions are becoming mandatory for oil and gas operations

GlobalData Energy 18 November 2019 (Last Updated November 22nd, 2019 09:14)

Operational efficiency is one of the primary driving forces behind the increasing wave of investment in asset management solutions. 

Asset management solutions are becoming mandatory for oil and gas operations

GlobalData’s latest thematic report, Asset Management in Oil & Gas discusses the growing need to implement a comprehensive asset management strategy in this energy sector.

Benefits of asset management 

Against a backdrop of increasing competition and narrowing margins for oil and gas companies, asset management is obtaining greater relevance for its potential to enhance operational efficiencies. This is especially the case as the industry is increasingly expected to manage an ageing infrastructure to extract optimum performance while minimising health and safety risks. 

The expectation is that asset management solutions can play a pivotal role in making this happen along with ensuring that operational costs are kept in control. If managed properly, these solutions can also improve the overall uptime and performance of assets and prolong their operational life. Moreover, the growing need to curb greenhouse gas emissions from oil and gas operations is giving added impetus to implementing asset management solutions.

What is asset management?

Asset management provides a structured methodology of creating, operating, maintaining and decommissioning assets in a cost-effective way. Modern oil and gas facilities are being set up on a larger scale than before, having higher production and storage capacities, to insulate them from market volatility and improve long-term profitability. 

In theory, a well-designed asset management plan becomes even more important for projects like these in achieving their eventual objectives. Asset management solutions are not bound by restrictions of scale or geographic distances and can be implemented to oversee multiple establishments from a centralised location. These solutions can help in reducing equipment downtime, inventory control, resource management, cost savings, and meeting legal and regulatory compliances.

Asset management can effectively address all core priorities of oil and gas companies – improving operational efficiencies; protecting the environment and its ecosystems; and health and safety of the workforce. 

It is clear that operational efficiency is one of the primary driving forces behind the increasing wave of investment within this technology application. 

Nevertheless, considering the growing demand from environmentalists for curtailing exploration and production activities amid climate change concerns, the oil and gas industry is expected to increasingly turn towards asset management to limit the environmental impact of their operations and to thwart another 2010 Gulf of Mexico Deepwater Horizon oil spill.

GlobalData’s thematic research identifies oil and gas companies, such as BP, Chevron, ConocoPhillips, Equinor, ExxonMobil, Repsol, Rosneft, Shell, and Total as the prominent players in the asset management theme. 

The research also attributes solutions and services providers, such as ABB, Aker Solutions, Bureau Veritas, Cyient, Emerson, GE, Halliburton, IBM, Infor, Lloyd’s Register, NOV, Oceaneering, Oracle, OSISoft, SAP, Schlumberger, and Schneider Electric for their role in implementing asset management programs in the oil and industry.

Top companies in asset management theme

Source: GlobalData Thematic Research ©GlobalData