INDUSTRY KNOWLEDGE
How digitalisation can help to future proof downstream oil
COVID-19 IS DISRUPTING DOWNSTREAM OIL , WITH AN UNPRECEDENTED DROP IN DEMAND , A SUPPLY GLUT AND PRICE REDUCTIONS . WITH UNCERTAINTY PREVAILING , THE SECTOR IS FINDING WAYS TO ADAPT TO THE ‘ NEW NORMAL ’ RATHER THAN LET INERTIA TAKE OVER . HERE KEITH TILLEY , CEO OF INTOWARE , A COMPANY THAT SPECIALISES IN WORKFLOW AUTOMATION IN THE INDUSTRY , DISCUSSES HOW DIGITALISATION IS HELPING TO FUTURE PROOF THE DOWNSTREAM VALUE-CHAIN .
The global pandemic caught the
oil industry unprepared for a new landscape where planes remained grounded and cars stayed parked as demand for transportation fuels fell by half . It was the sharpest shock the industry has ever seen – which means the need to speed up digitalisation efforts to support increasingly slim margins has never been greater .
A connected workforce Digital transformation provides the opportunity for oil refiners , storage depots and secondary distributors to streamline business processes by providing easy access to real-time data that flows across the operation thereby reducing unplanned downtime to maximise performance and profits .
When these digital processes are then integrated with wearables , IOT and AI technologies , it can enhance communication between supervisors and workers ; helping workers to prioritise and manage daily tasks and audits while also encouraging greater collaboration and problem solving .
Yet , despite the proven benefits of digitalisation , industry inertia persists due to the complexity of downstream operations and cost . This meant there was no immediate incentive for change , but with on-going disruption from Covid-19 many downstream operators are now looking to digitise to help deliver greater efficiencies or risk being left behind .
Downstream operators need to re-imagine key business processes to make this possible . This means digitising those functions that deliver maximum value , emphasising operations and maintenance excellence to drive efficiency and productivity and ultimately connecting the entire value chain digitally from raw material to end customer .
Digitalisation – prioritising your efforts According to PWC research , ‘ companies that successfully digitalise can cut operating costs by up to 20 %, increase plant efficiency by as much as 12 % and reduce the number of unplanned shutdowns .’
The research also highlights that a business first , not technology led approach is essential when considering which operations to digitalise : ‘ But many businesses still lack a clear strategy to harness the benefits of digitalisation . It helps to identify specific business problems to apply digitalisation to otherwise they may risk wasting time and money . They need to prioritise their digitalisation efforts by linking them to the processes that deliver maximum value ’.
In any business not just downstream , there is always a huge pressure to reduce costs and improve efficiencies – this is the major driver for digitalisation . We have already seen advancements in the supply chain that have been made with AI performing automated checks and machine learning for example , but there is still much to be done as there is a huge amount of inefficiency , usually from using paper – from audits to changeovers and machinery reporting that is impossible to analyse with any accuracy .
Downstream operators can use digitalisation to help achieve these goals with automated workflow platforms integrated with mobile and wearables to more advanced solutions , such as “ digital twins ” that deliver 3D visualisations of a physical facility or process to aid remote monitoring and predict potential equipment failures . Asked how digital transformation specialists , such as Intoware , are assisting in the achievement of these goals Keith explains ;
“ Prior to the pandemic , Intoware developed its automation platform ,
Keith Tilley
WorkfloPlus , using mobile and augmented reality ( AR ) technologies . The aim was to help digitalise workflows , audit and compliance processes required in downstream operations .
“ By switching to digital work instructions , downstream operators not only get measured productivity improvements ( over 200 % in some cases ) they build a huge bank of data for audits and also use the same information to predict when equipment failures may occur . Done digitally however , anybody from the worker , to the supervisor or auditor can see the characteristics of a check in real time , the impact it has and provide digital evidence , such as images or data , to know it is done correctly – all in a fraction of the time .”
Emphasising these advantages Keith continues ;
“ One client was asked , in a recent audit , ‘ how many times was filter ‘ X ’ changed last year ?’. Historically , this would have taken a day to find the information and prove the claim . Today , it takes the team three clicks and less than 10 seconds . It is the capture , analysis and use of this data that is the real ‘ gamechanger ’, delivering new insights .”
Real-time data visibility Digitalisation can deliver more than improved equipment maintenance strategies ; ultimately it can help operators to become more competitive by improving visibility beyond an individual plant or depot further along the value-chain itself as data is no longer siloed but is visible in real-time . Doing so can generate cost savings as operators can quickly react to fluctuating oil demand , plant shutdowns and even plan ‘ what if ’ scenarios as situations quickly change .
Without digitalisation , the ability to make the most out of slim margins will remain a challenge . The real question for the industry is how best to tackle inertia and embrace change to make the transition from known methods to innovative technologies that offer the potential to future proof .
Fuel Oil News | November 2020 27