How Digitization of Oil and Gas Industry Enabled Plan Delivery Services to Improve Cycle Planning?

Sep 2, 2022

Highlights of the Case Study: 

Particulars Description 
Client A leading oil and gas company based out of Europe struggled to improve the cycle planning of their delivery services. 
Business Challenge The client wanted to examine different life cycle delivery stages to eliminate inefficiencies, drive innovation, and deliver services on time. 
Impact Quantzig’s solutions helped our client achieve vertical integration to drive efficiency and enhance profitability. 

Game-Changing Solutions for the Oil and Gas Industry 

Digitization has played a major role around the globe, it’s true for the oil and gas industry as well. The activities of the oil and gas sector are segmented into upstream (exploration and production), midstream (transportation and processing), and downstream (distribution and sale to end users/consumers). Integrating the different stages to ensure optimum utilization of resources and timely delivery involves careful analysis and planning. 

Quantzig’s supply chain analytics solutions can help develop smart supply chains and efficient methods to gain clear visibility over the entire oil and gas production and distribution process. Our solutions can provide insights on production planning, execution, and measurement to generate profitable outcomes. 

The Challenges of the Manufacturing Client 

Our client is a leading oil and gas company based out of Europe struggling with improving its delivery services’ cycle planning. A traditional supply chain can be ineffective due to many operational inefficiencies. The client was disadvantaged as it could not utilize and leverage the vast amount generated at its facilities.     

The client sought Quantzig’s assistance in examining the different life cycle delivery stages. This included a feasibility study, concept development/design, pre-FEED, front-end engineering & design (FEED), detailed engineering, procurement, on-site/offsite fabrication, construction, erection/ installation, pre-commissioning, commissioning, and start-up. These stages can be broadly categorized into exploration, appraisal, development, production, and abandonment. The client required our data intelligence and advanced analytics solutions to eliminate inefficiencies, drive innovation, and ensure timely delivery. Some of the challenges faced by our client were as follows:   

  • Lack of structured data  
  • Crippled supplier base  
  • Inability to handle the massive amount of data generated while managing large networks of oil and gas pipelines  
  • Declining profit margins and rising operating costs  
  • Adherence to stringent regulatory checks across international borders  
  • Inventory shortages or surplus stock at various points in the supply chain  
  • Losing valuable customers to its rival companies  

Followed with the digitization of oil and gas industry, our client wanted to leverage our advanced analytics solutions to drive efficiency.

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Analytics Solutions for the Oil & Gas Industry 

Quantzig offered our client a data-driven supply chain analytics framework that helped to streamline and optimize every stage of the life cycle delivery process. The client’s key focus was exploration and production of the field life cycle for smooth delivery services. Quantzig’s solution led to precise supply forecasts by integrating several analytical techniques, defining algorithms over time, and reducing stock-outs. Moreover, the supply chain was incorporated and made IoT-enabled so that the client could receive real-time data on the entire process.   

Quantzig’s solutions helped our client achieve vertical integration by implementing IoT-enabled systems across all the processes in the value chain. An enormous amount of duplicate data gets generated when extracting, exploring, and monitoring pipelines. Quantizig’s advanced analytics team used a specialized data extraction technique to filter the data needed for making optimum decisions.

Impact Analysis of Quantzig’s Analytics Solution and Digitization of Oil and Gas Industry  

The cost of oil and gas delivery services was significantly reduced due to our intervention involving cutting-edge, tailored solutions and sector knowledge. Quantzig helped mitigate downstream and midstream difficulties common in the oil and gas industry by accurately predicting demand and integrating storage, logistics, and transportation.  

Quantzig’s supply chain analytics and IoT-enabled technology helped our client achieve the following benefits:  

  • Track the process at all transit stages   
  • Locate reservoirs that produced the most amount of oil 
  • Balance the energy reserves to stabilize the supply and demand  
  • Eliminate bottlenecks in the circulation of oil and gas  

Key Outcomes 

Implementing advanced supply chain analytics solutions helped address many of the issues faced by our client from the oil and gas industry. Our interventions enabled the client to leverage the vast amount of data generated to derive actionable insights. These insights helped drive efficiency, optimize processes, reduce waste, and ensure timely delivery. We significantly reduced costs by assisting our client in integrating all its services internally rather than outsourcing them.  

digitalization of oil and gas industry

A Broad Perspective on the role of Digitization in the Oil and Gas Sector: 

The digital transformation of the oil and gas industry is helping the industry in numerous ways, such as shortening the cycle and improving the bottom line. It is also helpful in improving safety protocols that can reduce plant and refinery workers’ health and safety risks using autonomous drones. These drones have highly developed infrared sensors that are utilized for ground surveillance and monitoring of plant equipment. When used in conjunction with smart inspection tools driven by AI, the system further enhances product lifecycle management by employing cognitive analytics and predictive asset optimization. It can also help anticipate and mitigate supply chain disruptions and forced outages.  

Key Takeaways- Digitization of Oil and Gas Industry 

Quantzig’s supply chain analytics solutions enabled the following benefits for the oil and gas company: 

  • Leverage data for actionable insights 
  • Optimize its supply chain 
  • Reduce operating costs to improve profits 
  • Abide by stringent regulatory checks across international borders  
  • Check inventory shortages or surplus stock  
  • Retain valuable customers by adhering to delivery timelines  

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