Operational Agility and Responsiveness
Increasing global demand. Stringent regulations. Political upheaval. The rising costs of finding,
drilling, and extracting new reserves. These are just some of the challenges that the oil and
gas companies face every day.
With operations in over 70 countries, Shell represents one of the largest oil companies in the
world. To compete against the likes of ExxonMobil, BP, and Chevron, the company looks to
analytics to give it a competitive edge. Shell uses its own data analytics platform to help boost
productivity and increase operational efficiency.
Bernard Marr, a strategic business and technology advisor, reported that Shell is focused on
developing the "data-driven oilfield" to help drive down its biggest expense -- the cost of oil
drilling. Marr says that Shell uses analytics in three main areas:
Surveying and Forecasting:
Using sensors to get a more accurate image of what lies beneath the ground, the
system compares the data of a new prospective oil field with thousands of other sites
around the world to determine "the best one" to drill. It also looks at forecasting the
potential output of the field. Analytics help dramatically reduce the risk and expense of
selecting an unproductive oil field.
THE NEED FOR SPEED | 5
Monitoring Equipment and Inventory:
Machinery can be expensive to maintain and even more expensive to repair. The
company has been fitting its machines with sensors that can monitor performance and
ensure that replacement parts are available in case of failure or breakdown. Analytics
help forecast the probability of equipment breakdown and help management plan for it.
Transportation and Distribution:
Analytics also come into play as the company seeks to streamline and improve
efficiency with the transport, refinement and distribution of oil and gas. Analytics help to
evaluate ways to increase and maximize operational efficiencies across the enterprise.
