Transforming Oil and Gas Data Operations

For the Oil and Gas industry, data is more than just a buzzword. The modern oil well doesn't just pump crude; it gushes data at an astonishing rate – over 10 terabytes every single day. Offshore platforms and seismic surveys contribute their own deluge of information, making a single day's data production equivalent to what a room full of standard laptops could store. Data is the foundation of informed decisions, from drilling operations to distribution strategies.

But here's the catch. Without the right tools, data is sure to be mismanaged, the consequences of which can mirror a modern-day oil spill. Below are some numbers to understand the scale of this challenge; highlighting the need for revamped technology foundations such as the cloud to host, process, and serve insights for business efficacy:

According to a report by S&P Global, the data volume for a single oil well exceeds 10TB per day. This is due to the combination of optical fibres and sensors being used in the well to check for various parameters.
According to a Cisco whitepaper, a typical offshore oil platform generates between 1 TB and 2 TB of data per day.
A report by NASA says that a single seismic survey collects around 10 TB worth of data.

Data Overload: A Persistent Problem

Imagine this: an offshore operational executive at a major Oil and Gas (O&G) corporation responsible for a crucial oil-drilling project. However, the team of geologists are yet to come back with the precise location hotspots to commence drilling operations. The clock ticks, and every passing hour equates to a substantial loss in critical equipment operational time, translating to thousands of dollars evaporating from the project budget.

The above scenario might be slightly exaggerated, but the core problem isn’t: data silos and data overload in the Oil and Gas industry. There are terabytes worth of data (on seismic surveys, oil well logs, satellite imagery, and sensors) which require meticulous analysis. The main reason behind such data silos and the burden of an unprocessed data overload often is a multitude of on-premise systems being used across the industry’s diverse business units. These systems often operate independently and lack deeper synchronization, resulting in the lack of central data visibility or a universal data hub for seamless data transfer, processing, and utilization. The solution? Embracing a cloud landscape for some or all on-premise applications.

The Flaws in Common Data Flows and Processes

Oil and Gas processes are hubs of numerous, complex transfers of data between these separate databases and systems. Often, data is moved manually between applications, and, in many instances, routed through an intermediary application, such as Microsoft Excel. This multi-application environment not only comes with high maintenance costs and operational complexities, but also increases the risk of errors in data handling. Add the challenges of tracking, identifying, and rectifying data issues, and it quickly becomes a resource bomb. While data analysts can to an extent analyse the data and build reports, not having an integrated data foundation at the core would always lead to limited, or at worst, inaccurate outcomes.

Hence, there’s no doubt that Oil and Gas firms harbour an ocean of data, the volume of which explodes every day. But how can your team of drilling, petroleum engineers, and geologists effectively manage and leverage this vast data without drowning in it?

Data Transformation on Cloud

Considering the several advantages that come along with it, the sooner firms in the O&G industry invest in cloud technologies, the better it is for their efficiency, sustainability, and long-term competitiveness in a rapidly evolving global energy landscape. With cloud, companies can access virtually unlimited computational power, scalability, and advanced data analytics tools. Be it 1 TB or 10 TB, the cloud can analyse massive volumes of data in real time and at incredibly high agility. That holds true not just for storage but also for advanced analysis and insight generation by leveraging cloud-native analytics, machine learning models, data modelling and simulation software, etc. In terms of depicting what all is possible with cloud, this is just the tip of the iceberg.

Cloud enables oil and gas companies to:

Accelerate Data Analysis: Adopting cloud services and solutions and transitioning to the cloud can eliminate all data overload and analysis worries. Cloud can help process large volumes of data, in real-time, at unprecedented speeds. This way, a team of geoscientists can analyse subsurface models of the Earth's crust and quickly identify promising drilling locations, assess geological risks, and make informed decisions. So, no more weeks of simply waiting for project managers and company stakeholders just to receive and verify data.
Scale Resources: Another great advantage that digital transformation on cloud offers is access to on-demand compute. Let's assume an O&G firm is in the middle of peak exploration periods for potentially viable oil wells. In this case, the amount of data generated daily would be massive. But the company can instantly scale up their computational resources without investing in costly on-premises infrastructure and scale down when needed, if the data was to be temporarily processed. That ensures availability of operations at lower costs for resources only when utilized.
Enhance Collaboration: Cloud platforms facilitate collaboration among teams around the world. Let's assume a medium-sized O&G firm headquartered in Britain is exploring a potential oil well in Trinidad and Tobago. Now, while there may be a team of drilling and reservoir engineers and rig crew present on site, they may have to connect with a team of geologists and maintenance and support personnel back in Britain. But more than connecting teams worldwide, cloud platforms also provide a secure and efficient environment for shifting large volumes of data swiftly across locations, which isn't always feasible over the public internet due to concerns about latency, privacy, and compliance. A private network through cloud-to-cloud connectivity guarantees efficient data transfer, with allocated transfer bandwidth on-demand.
Cost Savings: Apart from seamless collaboration, another crucial advantage cloud services offer is cost savings. You have the option to pay only for the computing resources you use. This way, O&G firms the world over can significantly reduce costs compared to maintaining and upgrading their own data centers.
Lower Downtime: According to McKinsey, most O&G firms have a target of 95% uptime, but it’s one they often fail to meet. The reason? Unplanned outages, and the resulting maintenance activities. Unscheduled outages and unexpected downtime inflict substantial financial losses for the Oil and Gas industry. Such downtimes can result from equipment malfunctions, security breaches, or undetected issues. Predictive maintenance and infra health monitoring technologies powered by cloud could help maintain mission-critical ecosystems at peak and notify when things are about to go wrong. That helps preventing costly data losses or downtimes, potentially curtailing the latter up to 5%. To secure your business against unforeseen disruptions, considering automated data backup and recovery solutions and Disaster Recovery as a Service (DRaaS) is much needed. This offers you a safety net for your critical data and applications, ensuring rapid recovery and minimal downtime.

Data Solutions to Empower Your Cloud Transformation

Data Migration: The process of migrating data from on-premises and heterogeneous landscapes involving multiple legacy and third-party systems to a centralized hub on the cloud is a pivotal step in this transformation. This involves creating data lakes and streamlining data migration processes. Centralizing your data on the cloud is the foundation for streamlined data management and real-time analysis.
Data Modernization: Upgrading the core data storage, movement, processing, and analysis software and platforms on the cloud is crucial for staying ahead in today's data-driven landscape. Using the latest versions of these platforms enhances your data architecture's agility and power. Data modernization ensures that your organization can efficiently handle massive volumes of data, conduct real-time analysis, and generate valuable insights.
AI and Advanced Analytics: Cloud technology forms the backbone for deploying the latest technologies, such as AI, computer vision, and process automation, which are essential for modern energy firms. By leveraging cloud-native analytics, machine learning models, data modelling, and simulation software, companies can facilitate better decision-making and efficiency.
Data Security, Compliance, and Governance: With data consolidation on the cloud, companies can enhance their data security and ensure compliance with data residency and sovereignty laws. The cloud offers the latest security solutions to protect sensitive data from threats. Explore robust solutions in data security and compliance and align your data practices with the highest standards of protection.

More Cloud, Less Greenhouse Emissions

No surprise, the O&G industry is among the largest sources of greenhouse gas emissions globally, particularly carbon dioxide (CO2) emissions. We've already established that this industry meets the world's energy production requirements, which we cannot do without. However, all of this comes from the burning of fossil fuels, such as gasoline and natural gas (which is why the O&G industry is a major emitter of CO2.)

So, do we have a Catch-22 situation on our hands?

With cloud managed services, at least one red-alert problem in that mess can be tackled; burning energy in storing, computing massive amounts of data on-premise. Major Oil and Gas companies worldwide are discovering that adopting the cloud leads to more than just faster and accurate data management and analysis, cost-effective and environmentally conducive hosting, etc. It fundamentally transforms IT operations, replacing traditional on-premise servers and data centers with scalable, efficient cloud services. This transition positively impacts not only data analysis but also the broader spectrum of IT operations by enhancing operational efficiency, streamlining resource allocation, and enabling predictive maintenance. By doing so, it reduces the industry's carbon footprint, a significant step towards mitigating the sector's impact on greenhouse gas emissions. This is how:

Optimizing Operations: Data analysis, powered by cloud-native technologies, help companies become agile enough to adapt to changing circumstances, resulting in more sustainable O&G operations. Through cloud-native data analysis, O&G companies can uncover inefficiencies in extraction, refining, and distribution processes. For instance, this approach can pinpoint areas where energy is being wasted during drilling or refining operations. Furthermore, these companies can make well-informed decisions about resource allocation. This involves optimizing drilling techniques, reducing energy consumption during refining, and minimizing energy waste during transportation. Companies become agile enough to adapt to changing circumstances, resulting in more sustainable O&G operations.
Promoting Renewable Energy: While the O&G industry is primarily focused on fossil fuels, some companies are diversifying into renewable energy sources. Cloud-driven data transformation plays a pivotal role in helping O&G firms expedite their expansion into renewable energy businesses. Companies can efficiently integrate data from various sources, leverage scalable computing power to process vast amounts of data, and use machine learning and predictive analytics in renewable energy ventures.
Predictive Modelling: Predictive modelling can be especially valuable in the O&G industry for optimizing drilling operations. By analysing geological data and historical drilling performance, companies can make more accurate predictions about where to drill for maximum oil and gas extraction with minimal environmental impact.

Cloud transformation plays a beneficiary role in addressing this environmental challenge. Below are some statistics highlighting how cloud technology can significantly reduce the industry's carbon footprint:

According to a recent report from the International Data Corp., cloud can also reduce or prevent up to one billion metric tons of carbon dioxide in the next few years.
According to an IDC forecast, companies on the cloud can reduce carbon released into the air by 88% and lower power utilization by up to 84%.

Cloud is For the Present AND Future!

Many of the world’s major O&G (Oil and Gas) companies have realised adopting cloud and cloud-managed services can play a vital role in helping them reduce their environmental footprint. Microsoft has already forged strategic partnerships with industry giants like Chevron, ExxonMobil, Suncor, and Petrobras. These collaborations have solidified Microsoft Azure as the preferred cloud provider for these companies, enabling them to leverage the capabilities of cloud, big data, and machine learning.

Another noteworthy example is BP's agreement with AWS (Amazon Web Services). BP has committed to supplying renewable energy to fuel Amazon's operations. In return, Amazon will play a pivotal role in modernizing BP's infrastructure and operational processes. This includes the migration of applications from BP's large European data centers to the AWS cloud, marking a significant step forward in their digital evolution. Having seen leaders in the O&G sector create ties with the best cloud providers, when are you going to leverage the advantages of cloud solutions and services for your firm?

Oil & Gas, Cloud and Cloud4C

As the world’s largest application-focused managed cloud services for multiple industries including Oil and Gas/Energy, Cloud4C makes your cloud adoption journey smooth, seamless, and cost-effective. Proficient in architecting, deploying, and managing hybrid and multi-cloud solutions for mission-critical and complex transformations like that of the Oil and Gas industry, Cloud4C ensures frictionless digital evolutions in a single SLA from infra till application login promising uncompromised security and continuity.

With some of the world’s leading oil and gas firms trusting us, be rest assured that your cloud adoption strategy will be in line with your business objectives. Ready to expedite your journey to the cloud? Take a Cloud Assessment (to see where your IT infrastructure stands) or talk to one of our representatives today!

Key Takeaways	Description
Data Management Challenge	The Oil and Gas sector grapples with massive daily data generation, necessitating effective data management.
Data Overload & Silos	On-premise systems create data silos and overload; cloud solutions are vital for resolving this.
Inefficient Data Handling	Complex data transfers and manual processes lead to high costs and data inaccuracies.
Cloud Benefits	Cloud adoption accelerates data analysis, offers scalability, fosters collaboration, saves costs, and reduces downtime
Cloud Transformation	Empower your cloud transformation through a host of solutions including data migration, modernization, AI analytics, data security, and many more.
Greenhouse Gas Reduction	Cloud transforms IT operations, optimizing resources and reducing greenhouse emissions.
Emission Reduction Strategies	Data analysis identifies inefficiencies, promotes renewables, and enables predictive modelling for eco-friendly drilling.
Industry Examples	Major O&G companies partner with cloud service providers for environmental sustainability.
Cloud4C Fully Managed Services for O&G Transformation	Cloud4C offers specialized managed cloud services for a seamless O&G cloud adoption journey.