2020 has been one of the most challenging years on record for oil and gas companies. In its recently published “2020 Digital Operations study for energy,” Strategy& looked at the impact of the COVID-19 pandemic on the already-struggling sector:
“O&G companies had faced formidable challenges to their efficiency, sustainability and profitability before COVID-19. As a result of the pandemic, prices have collapsed so severely that the urgency to tackle these issues has increased dramatically. One of the clearest and most viable responses to these systemic challenges is to accelerate digitization strategies to help improve resilience and remain attractive to investors.”
Strategy& is a global strategy consulting business and part of the PwC network. In preparing its recent Digital Operations Study of O&G companies, Strategy& found that industry leaders anticipate digital applications will deliver on average a 10 percent increase in revenue and an 8.5 percent decrease in costs over the next five years. Industry leaders cited increased production, reduced time to project start-up, and improved operational efficiency as some of the key benefits of digital technologies and applications.
While industry leaders recognize the potential of digital technology and applications, Strategy& reports that oil and gas companies have been slow to fully embrace digital transformation. Of the 200+ oil and gas companies surveyed, only 7 percent identified themselves as “Digital Champions,” and more than 70 percent of respondents saw themselves as being in the early stages of digital maturity.
Market conditions in the oil and gas sector have hindered adoption of digital transformation initiatives. Industry leaders face pressure to transition from traditional carbon-intensive operations to renewable energy sources, and to reduce greenhouse gas emissions in production and other operations. The COVID-19 pandemic presents another barrier to digital transformation in the oil and gas sector, as demand and prices fall.
In the midst of a pandemic that’s impacted demand and pricing, it’s easy to understand the inclination to cut programs that do not immediately contribute to cash flow. However, Strategy& suggests accelerating adoption of digital technologies and applications. Digital tools like machine learning, cloud, Internet of Things (IoT), enterprise resource planning systems (ERP), and manufacturing execution systems (MES) are critical to meeting efficiency challenges and improving profitability. Now more than ever, digitization is essential.
Thermo Fisher Scientific is helping oil and gas laboratories realize their digital transformation in three key areas:
- Cloud Capabilities – Thermo Fisher is positioned to support your lab’s cloud strategy. Thermo Scientific™ SampleManager LIMS™ software cloud services is a new deployment option that enables SampleManager LIMS software customers to benefit from one of the world’s most deployed LIMS, hosted on Amazon Web Services (AWS) and managed by Thermo Fisher Scientific, the world leader in serving science. Now your lab can choose SampleManager LIMS software whether your IT infrastructure is on premise, in a private cloud or on AWS. You can learn more about our cloud services in this blog.
- IoT and Connectivity Capabilities – Flexible integration capabilities are the foundation of the connected laboratory. Building a laboratory ecosystem that connects people, instruments, consumables, and software requires the right capabilities and tools. Transforming your lab means enabling your scientists to manage their analytical data and workflows, perform analysis on data from multiple instruments and vendors within a single system, while maintaining data integrity and maximizing productivity. With our complete suite of integration capabilities and expertise in integration, data visualization, e-commerce, services and software, Thermo Fisher can help you uncover the hidden value of your data. You can learn more about our integration capabilities at thermofisher.com/connecteverything.
- ERP Connectivity – Building on our comprehensive suite of integration capabilities, Thermo Scientific™ SampleManager™ IDI Software now supports S/4HANA Cloud, a cloud-based deployment of S/4HANA. With SampleManager IDI software, you can integrate your laboratory with S/4HANA for comprehensive quality management support throughout the supply chain. SampleManager IDI software expedites data flow between the laboratory and the manufacturing functions, streamlines data handling, and integrates data collection and reports. The solution also supports on-premise deployments of S/4HANA, along with SAP R/3. You can read more about our SAP integration capabilities in this blog.
No matter where you are in your digital transformation journey, partnering with Thermo Fisher can help you take the next step. Visit our website to learn more about our solutions for oil and gas laboratories, or contact us today to discuss your digital transformation needs.