Advanced analytics can unlock trillions for oil and gas companies: Accenture
Advanced analytics can unlock trillions of dollars for oil and gas companies by solving issues in the value chain that have long been considered unsolvable, said Accenture in its Oil and gas: How do you compete with free? report.
According to the report, analytics can offer oil and gas companies a cumulative return on investment of almost four times the baseline. This multiplier could rise further when combined with artificial intelligence or machine learning.
The research spanned four domains across the value chain—portfolio management, asset development, operations, and commercialisation.
The value potential of each domain is as follows:
- Portfolio management: companies can improve capital efficiency between 10 to 15 percent. Dynamic risk-return assessments can anticipate an asset’s financial performance and transform these insights into reduced capital investments and increased productivity.
- Asset development: companies can lower capital expenditures by 10 to 20 percent and improve productivity by five to 10 percent. Analytics can allow for an integrated and efficient approach to field development by identifying optimal well locations, informing design decisions, and identifying and correcting risks.
- Operations: companies can improve their productivity by two to seven percent and reduce operational costs by five to 15 percent. Analytics can indicate the interventions that are needed at the various facilities to maximise throughput, while keeping costs low.
- Commercialisation: companies can increase their margins by two to five percent. Analytics can help companies identify the most profitable plays across the value chain.
For more insights on how oil and gas companies can make better decisions through advanced analytics, please download the full report here.