Hui Shan

Job Steward at NrgEdge. If you are an Energy Professional (Oil, Gas, Energy) contact me for opportunities
Last Updated: October 20, 2018
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Career Development
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Global oil and gas sector is operating in an environment of unparalleled opportunity coupled with dynamism and volatility. In today’s world companies are looking for ways to create a sustainable cost-efficient model of operation. This model should be targeted to meet the challenges of the oil and gas industry, which includes margin pressure, cost competition, supply-chain issues, manpower shortage, global competition, technological advancements, and asset reliability. The good news here is, there is a solution within our reach that has immense untapped potential. Let us understand how Information technology can be leveraged in the oil and gas industry for greater benefit and sustainability.

What Is trending in Information Technology?

There are numerous technological advancements that are governing the oil and gas industry and are referred to as the drivers of the sector, these include:

Big data management - The use of automation and information technology resulting in the creation of volumes of data. This is then categorized and analyzed to create insightful information that helps in better decision-making.

Cloud computing - Cloud computing enables the oil companies to store and access a large volume of data. It allows seamless data management and computing across the organization.

IoT and SCADA (Supervisory Control and Data Acquisition) architecture - Industrial Internet of Things and SCADA help the operational process of oil and gas industry by merging it with information technology. The IT interface provides broad operational insights that help in optimizing the operational process. It can also enhance the cost efficiency and productivity.

Digital Oil-field- The sensors in pumps and well-heads create numerous data, both internally and externally. With the advent of information technology, this data is monitored and analyzed to create a digitally integrated oil value chain.

 However, it is important that the oil and gas sector should adopt new IT practices to make them future-ready. The focus should not be just on data analysis via sensors but rather it should start addressing the entire E&P value chain and foray into complete automation. Until now the data collected and analyzed has been used to detect anomalies but now the time is right to optimize the resources and predict the future course.

 How and where can IT be used in the oil and gas industry?

The important IT concepts like Big Data and analytics, IoT and SCADA can be used effectively in various areas of oil and gas industry, here are some of the applications:

Preventive maintenance of critical components

The real-time operational data derived from various critical components can help in setting a benchmark of quality parameters. The IT system will detect any deviation from the expected baseline and will alert the operational division to take prompt action. This system can be centralized such that the information available is real-time and accurate to plan preventive maintenance on time. This will help in reducing the maintenance cost and will avoid any hindrance in productivity.

 Drilling strategies

By analyzing the historical data and real-time data from the well site, the drilling managers can discover the best performing wells. The current site location and its characteristics will be matched to the existing well site information to diagnose the right location for drilling, the rate of penetration and the expected issues that the team might encounter. This will help in better planning and execution.

Reservoir limits.

With the integration of digital application, the oil companies have significantly increased the limit of the reservoir. Which resulted in a decrease in upstream and downstream capital expenditure along with additional ancillary benefits.  Some oil and gas companies are using 4-D seismic imaging to add a time-lapse dimension to traditional 3-D imaging which enables them to measure and forecast fluid changes in reservoirs. This enhanced view of reservoirs typically increases the recovery rate by boosting upstream revenue.

 Intuitive marketing and distribution

Retailers and marketers in other industries have successfully implemented digital technologies to understand consumer psychology for better positioning and marketing of their products and services. They also use this data to optimize pricing strategies, supply chain management, and product improvement. Oil companies have successfully replicated the result in the industry. With the help of geospatial analytics, the logistics department of the oil and gas company can efficiently manage the supply and distribution networks through location planning and route optimization.

 Informed decision making

The availability of a large amount of detailed real-time data categorized into various formats can help the management and stakeholders to understand the performance and problems with each segment. It enables them to make informed decisions to maximize productivity and performance.

 Recruitment and talent management 

Technology has completely transformed the talent acquisition, management, and retention process. The oil companies can use digital platforms like NrgEdge.com to advertise their job openings and reach out to potential candidates. They can conduct screening tests, background checks, telephonic or video interviews for hiring suitable candidates. Additionally, they can also manage and monitor the performance of the employees via dedicated platforms. Even the on-job training can be conducted to upskill the existing employees through audio/video interface and via augmented or virtual reality like simulators. Oil and gas companies require highly skilled professionals, Information technology allows them to fix the skill, talent and knowledge gap efficiently.

It’s time for the oil and gas companies to reinvent themselves by investing in digital technologies. With the right application of big data and analytics, the oil and gas industry can be immensely benefitted. It can help optimize performance, predict breakdowns, streamline maintenance work, and help in better and informed decision making. This will result in higher productivity, enhanced operational activity, reduction in downtime and wastage which means higher profitability and sustainability.

Stay updated with the latest industry news, jobs and networking using the nrgEDGE platform. You can upskill yourself by taking up e-learning courses on our platform to stay relevant in the Oil and Gas industry.

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The United States consumed a record amount of renewable energy in 2019

In 2019, consumption of renewable energy in the United States grew for the fourth year in a row, reaching a record 11.5 quadrillion British thermal units (Btu), or 11% of total U.S. energy consumption. The U.S. Energy Information Administration’s (EIA) new U.S. renewable energy consumption by source and sector chart published in the Monthly Energy Review shows how much renewable energy by source is consumed in each sector.

In its Monthly Energy Review, EIA converts sources of energy to common units of heat, called British thermal units (Btu), to compare different types of energy that are more commonly measured in units that are not directly comparable, such as gallons of biofuels compared with kilowatthours of wind energy. EIA uses a fossil fuel equivalence to calculate primary energy consumption of noncombustible renewables such as wind, hydro, solar, and geothermal.

U.S. renewable energy consumption by sector

Source: U.S. Energy Information Administration, Monthly Energy Review

Wind energy in the United States is almost exclusively used by wind-powered turbines to generate electricity in the electric power sector, and it accounted for about 24% of U.S. renewable energy consumption in 2019. Wind surpassed hydroelectricity to become the most-consumed source of renewable energy on an annual basis in 2019.

Wood and waste energy, including wood, wood pellets, and biomass waste from landfills, accounted for about 24% of U.S. renewable energy use in 2019. Industrial, commercial, and electric power facilities use wood and waste as fuel to generate electricity, to produce heat, and to manufacture goods. About 2% of U.S. households used wood as their primary source of heat in 2019.

Hydroelectric power is almost exclusively used by water-powered turbines to generate electricity in the electric power sector and accounted for about 22% of U.S. renewable energy consumption in 2019. U.S. hydropower consumption has remained relatively consistent since the 1960s, but it fluctuates with seasonal rainfall and drought conditions.

Biofuels, including fuel ethanol, biodiesel, and other renewable fuels, accounted for about 20% of U.S. renewable energy consumption in 2019. Biofuels usually are blended with petroleum-based motor gasoline and diesel and are consumed as liquid fuels in automobiles. Industrial consumption of biofuels accounts for about 36% of U.S. biofuel energy consumption.

Solar energy, consumed to generate electricity or directly as heat, accounted for about 9% of U.S. renewable energy consumption in 2019 and had the largest percentage growth among renewable sources in 2019. Solar photovoltaic (PV) cells, including rooftop panels, and solar thermal power plants use sunlight to generate electricity. Some residential and commercial buildings heat with solar heating systems.

October, 20 2020
Natural gas generators make up largest share of U.S. electricity generation capacity

operating natural-gas fired electric generating capacity by online year

Source: U.S. Energy Information Administration, Annual Electric Generator Inventory

Based on the U.S. Energy Information Administration's (EIA) annual survey of electric generators, natural gas-fired generators accounted for 43% of operating U.S. electricity generating capacity in 2019. These natural gas-fired generators provided 39% of electricity generation in 2019, more than any other source. Most of the natural gas-fired capacity added in recent decades uses combined-cycle technology, which surpassed coal-fired generators in 2018 to become the technology with the most electricity generating capacity in the United States.

Technological improvements have led to improved efficiency of natural gas generators since the mid-1980s, when combined-cycle plants began replacing older, less efficient steam turbines. For steam turbines, boilers combust fuel to generate steam that drives a turbine to generate electricity. Combustion turbines use a fuel-air mixture to spin a gas turbine. Combined-cycle units, as their name implies, combine these technologies: a fuel-air mixture spins gas turbines to generate electricity, and the excess heat from the gas turbine is used to generate steam for a steam turbine that generates additional electricity.

Combined-cycle generators generally operate for extended periods; combustion turbines and steam turbines are typically only used at times of peak load. Relatively few steam turbines have been installed since the late 1970s, and many steam turbines have been retired in recent years.

natural gas-fired electric gnerating capacity by retirement year

Source: U.S. Energy Information Administration, Annual Electric Generator Inventory

Not only are combined-cycle systems more efficient than steam or combustion turbines alone, the combined-cycle systems installed more recently are more efficient than the combined-cycle units installed more than a decade ago. These changes in efficiency have reduced the amount of natural gas needed to produce the same amount of electricity. Combined-cycle generators consume 80% of the natural gas used to generate electric power but provide 85% of total natural gas-fired electricity.

operating natural gas-fired electric generating capacity in selected states

Source: U.S. Energy Information Administration, Annual Electric Generator Inventory

Every U.S. state, except Vermont and Hawaii, has at least one utility-scale natural gas electric power plant. Texas, Florida, and California—the three states with the most electricity consumption in 2019—each have more than 35 gigawatts of natural gas-fired capacity. In many states, the majority of this capacity is combined-cycle technology, but 44% of New York’s natural gas capacity is steam turbines and 67% of Illinois’s natural gas capacity is combustion turbines.

October, 19 2020
EIA’s International Energy Outlook analyzes electricity markets in India, Africa, and Asia

Countries that are not members of the Organization for Economic Cooperation and Development (OECD) in Asia, including China and India, and in Africa are home to more than two-thirds of the world population. These regions accounted for 44% of primary energy consumed by the electric sector in 2019, and the U.S. Energy Information Administration (EIA) projected they will reach 56% by 2050 in the Reference case in the International Energy Outlook 2019 (IEO2019). Changes in these economies significantly affect global energy markets.

Today, EIA is releasing its International Energy Outlook 2020 (IEO2020), which analyzes generating technology, fuel price, and infrastructure uncertainty in the electricity markets of Africa, Asia, and India. A related webcast presentation will begin this morning at 9:00 a.m. Eastern Time from the Center for Strategic and International Studies.

global energy consumption for power generation

Source: U.S. Energy Information Administration, International Energy Outlook 2020 (IEO2020)

IEO2020 focuses on the electricity sector, which consumes a growing share of the world’s primary energy. The makeup of the electricity sector is changing rapidly. The use of cost-efficient wind and solar technologies is increasing, and, in many regions of the world, use of lower-cost liquefied natural gas is also increasing. In IEO2019, EIA projected renewables to rise from about 20% of total energy consumed for electricity generation in 2010 to the largest single energy source by 2050.

The following are some key findings of IEO2020:

  • As energy use grows in Asia, some cases indicate more than 50% of electricity could be generated from renewables by 2050.
    IEO2020 features cases that consider differing natural gas prices and renewable energy capital costs in Asia, showing how these costs could shift the fuel mix for generating electricity in the region either further toward fossil fuels or toward renewables.
  • Africa could meet its electricity growth needs in different ways depending on whether development comes as an expansion of the central grid or as off-grid systems.
    Falling costs for solar photovoltaic installations and increased use of off-grid distribution systems have opened up technology options for the development of electricity infrastructure in Africa. Africa’s power generation mix could shift away from current coal-fired and natural gas-fired technologies used in the existing central grid toward off-grid resources, including extensive use of non-hydroelectric renewable generation sources.
  • Transmission infrastructure affects options available to change the future fuel mix for electricity generation in India.
    IEO2020 cases demonstrate the ways that electricity grid interconnections influence fuel choices for electricity generation in India. In cases where India relies more on a unified grid that can transmit electricity across regions, the share of renewables significantly increases and the share of coal decreases between 2019 and 2050. More limited movement of electricity favors existing in-region generation, which is mostly fossil fuels.

IEO2020 builds on the Reference case presented in IEO2019. The models, economic assumptions, and input oil prices from the IEO2019 Reference case largely remained unchanged, but EIA adjusted specific elements or assumptions to explore areas of uncertainty such as the rapid growth of renewable energy.

Because IEO2020 is based on the IEO2019 modeling platform and because it focuses on long-term electricity market dynamics, it does not include the impacts of COVID-19 and related mitigation efforts. The Annual Energy Outlook 2021 (AEO2021) and IEO2021 will both feature analyses of the impact of COVID-19 mitigation efforts on energy markets.

Asia infographic, as described in the article text


Source: U.S. Energy Information Administration, International Energy Outlook 2020 (IEO2020)
Note: Click to enlarge.

With the IEO2020 release, EIA is publishing new Plain Language documentation of EIA’s World Energy Projection System (WEPS), the modeling system that EIA uses to produce IEO projections. EIA’s new Handbook of Energy Modeling Methods includes sections on most WEPS components, and EIA will release more sections in the coming months.

October, 16 2020