Harnessing the power of digitalization to address the evolution of Oil… · 2018-03-19 ·...

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PRESENTATION REM | 14-15 MARCH 2018 | RAVENNA Harnessing the power of digitalization to address the evolution of Oil, Gas & Chemical Industry Mauro Martis, Head of Industrial Automation Division, Italy

Transcript of Harnessing the power of digitalization to address the evolution of Oil… · 2018-03-19 ·...

Page 1: Harnessing the power of digitalization to address the evolution of Oil… · 2018-03-19 · Refining Base chemicals Specialty chemicals Petrochemicals Distribution Return on investment

PRESENTATION

REM | 14-15 MARCH 2018 | RAVENNA

Harnessing the power of digitalization to address the evolution of Oil, Gas & Chemical IndustryMauro Martis, Head of Industrial Automation Division, Italy

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The perfect storm

Threats and opportunities of digital technologies

Enabling digitalization with an IoT platform

Upstream to downstream—digital solutions for yield, cost, & safety

Customer examples

Conclusion

March 13, 2018 Slide 2

Agenda

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—The digital opportunity

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—A perfect storm

March 13, 2018 Slide 5

Inaction is not an option…

Revenues -40%, but OPEX only -9%—Average Rev/ OpEx (SB) Cybercrime Aging workforce: 50% retiring in 10 years

Aging infrastructure: 55% US pipelines,> 50 years

$15.00$10.00$5.00$0.00

$12.80

Financial services $13.50

Agriculture $1.97

Automotive $2.28

Media $3.15

Hospitality $3.34

Healthcare $2.35

Pharmaceutical $2.75

Education & research $3.89

Retail $4.88

$7.93

Technology $8.09

Utilities & energy

Consumer products $4.90

Communications $5.53

Transportation $5.65

Public sector $6.01

Defense $6.61

Industrial $7.66

Services

0

2

4

6

8

10

12

14

Q3

2015

Q2

2015

Q1

2015

Q4

2014

Q3

2014

Q1

2014

Q4

2013

Q3

2013

Q2

2013

Q1

2013

Q4

2012

Q3

2012

Q2

2012

Q1

2012

Q2

2014

Revenue Operating expense

Source: Strategy & part of the PwC network Source: Ponemon Institute, September 2016

Revenue and OpEx decline since Q3-2014

-40%

-9%

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—Digital trends affecting the value chain

March 13, 2018 Source: Bain & Co, August 2016Slide 6

Threats and opportunities

Digital technologies

Internet of Things

Big Data

Advanced Robotics

Smart plants

Digital engineering

3-D printing

Mobile apps

Omnichannel

Sourcing R&D Production Sales and service Distribution

Moderate impact

Significant impact

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—Digital technologies are driving new innovation

March 13, 2018 Slide 7

Media is focused on B2C but the “killer app” is in B2B

Software-defined machines Machine learningVirtual/ augmented reality Time-sensitive networking Big data

Cloud computing CybersecurityInexpensive computing Connectivity Blockchain

5G

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—IT & OT integration

March 13, 2018 Slide 8

The undiscovered country…

Enterprise Resource Planning

Human Resource Management

System

Distributed Control System

Enterprise Asset

Monitoring

Data fusion, contextual awareness, alerts, insights

ERP HRMS IT OTIoT

DCS EAM

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—How we can help deliver value

March 13, 2018 Slide 9

ABB Ability™ - Digitally connected products and services providing expertise

Know more

Do more

Do better

Together

Assess

Automate

Optimize

CollaborateAnalyze

ActSense

Analyze

ActSense

Analyze

ActSense

Analyze

ActSense

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—There are two loops: Control loop & asset loop

March 13, 2018 1 Asset loop actions are often done manually todaySlide 10

Realtime

Cloud

Edge

Device

HybridCloud Analyze

SenseAct

Days/weeks/months

Control

Optimization

On

Prem

ise

Analyze

Sense

Act1

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March 13, 2018 Slide 11

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—Multiple areas where digitalization can help

March 13, 2018 Slide 12

Improve yield, reduce cost, & enhance safety

Downstream Chemicals

Midstream

Upstream

Refining Base chemicalsSpecialtychemicals Petrochemicals Distribution Return on investment

Safety and security

Operator efficiency

Telecommunications

Electrical

Automatic, control and instrumentation

Storage

Wellheads SeparationPipeline

Onshore

Offshore

Subsea station

Rock

Cap rock

Oil and gas

Reservoir rock

Manifolds and gatherings

Metering, storage and export

LNG production and regasification

Gas plants and compression

Oil and gas pipelines and risers

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—A portfolio of digital offerings

March 13, 2018 Slide 13

Addressing the entire value chain of oil & gas

Connectivity & Cyber Security

Collaborative Operation Centers

Operations, Safety & Security

Management

Energy Management

Process PowerEnergy Analytics

Smart WellsFlow Assurance

Production Optimization

Digital Project Execution

Production Performance Solutions and

Services

Asset Management and

Condition Monitoring

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—Upstream → Downstream

March 13, 2018 Slide 14

Digital opportunities

2 Collaborative support

6 Automated data collection

3Subsea technologies

1 Safety management

7Remote operations8 Integrated

infrastructure

4 Fleet management

5 Site collaborative operations

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Onshore & midstream

The power of ABB Ability to optimize resources and efficiency

March 13, 2018 Slide 15

Customer’s Situation: Design and deploy a safe, reliable power, communications and control infrastructure for 6000 upstream wells and 540km pipeline supporting liquefied natural gas production facility over a vast 1500sq mile areaABB’s Solution: Digital infrastructure provided across integrated electrification, telecommunication, and automation systems. The centralised control room environment requires only 4 operators across the huge site. Combined analytics upstream & midstream Outcome: Achieving extremely high facility efficiency and productivity. Reduced complete lifecycle costs by using remote operations. From reactive to predictive. Major time saving maintenance team would otherwise need a whole day to travel across the site.

QCLNG – QGC Australia coal seam gas to LNG

Improved efficiencies, optimized resources

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Remote operations center

The power of ABB Ability centers to maximize uptime

March 13, 2018 Slide 16

Customer’s Situation: Norske Shell operates two oil and gas fields on the Norwegian Continental Shelf: Draugen and Ormen Lange. Both fields operate at exceptional levels of availability and productivity, thought to be the highest in the oil and gas industry. ABB’s Solution: Authorized ABB personnel have remote access to the safety and automation systems at Draugen and Ormen Lange from several remote monitoring and operations rooms at ABB locations in Norway. This enables ABB to safely implement changes, troubleshoot, provide support and carry out health checks by remote.

Outcome: “Ever since the start-up phase in 2007, uptime at Ormen Lange has been more than 99 percent for most months of the year. Such high availability is unusual for a plant as large and complex as this. We’ve invested significant resources in continuously fine-tuning the plant, which has benefitted us enormously. Our experience from Ormen Lange tells us that it pays to invest in optimization.” – Reider Haugsgierd, Process Control Engineer, Norkse Shell

Ormen Lange

Improved efficiencies, optimized resources

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Chemicals: Intelligent infrastructure The power of ABB Ability to optimize efficiency

March 13, 2018 Slide 17

Customer’s Situation: Customer is experiencing production loss due to breakdown of standard assets like LV motors, gearboxes, pumps, fans, compressors. Utilization of timely information about the equipment’s health state can change this by enabling the plant operator to a proactive maintenance process which minimizes the risk of unplanned production shut downs, provides the possibility of gentle operation or minimize the downtime and additional damage due to better preparation.ABB’s Solution: Low-cost sensor for plant wide data collection that makes the health status of assets transparent and thus enables the offering of predictive maintenance using fleet analytics algorithms running on the distributed ABB Ability infrastructure.

Outcome: Digital technologies and applications will increase the effectiveness of BASF’s assets as well as efficiency of manufacturing and engineering processes. Critical assets like rotating equipment are now empowered with ABB Ability infrastructure comprising of smart sensors and analytics algorithm which enables transparency of asset fleet conditions thereby reducing unplanned downtimes through predictive maintenance and enabling improvement services which minimizes operational costs

BASF 4.0, Germany, Fleet Management for Industrial Equipment

Improved operational efficiency

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Chemicals: Intelligent engineering

The power of ABB Ability to cut costs and reduces risk

March 13, 2018 Slide 18

Customer’s Situation: A number of integrated systems to power, automate and manage worlds largest petrochemical complex that contains more than 26 manufacturing facilities – over 3 million metric tons of capacity per year

ABB’s Solution: Capability to act as power & automation partner from concept through long lifecycle . Digital infrastructure provided across integrated power and automation systems Integrated software package to ensure safe, efficient and reliable operation of the facilities various assets. World’s biggest fieldbusfoundation enables seamless integration of different plant assets.

Outcome: Enabling world’s largest petrochemical complex to secureconnectivity and data management, scalability to accommodate future needs, advanced analytics capabilities for domain specific applications, seamlesscooperation between domain and product experts remotely and in the field forquick resolution of technical issues A single distributed control system will run its more than 50 fully automated production lines

Sadara, Saudi Arabia, Site collaborative operations

Improved efficiency, reduced cost and risk

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—Customer example

SCADA – Supervisory control and data acquisitionMarch 13, 2018 Slide 19

Benefits

– Leak detection via distributed acoustic sensing

– Physical security via laser pulses on fiber-optics on fencing

– Cybersecurity integrated into SCADA

– Point of Control (PoC) allows transfer of control to be passed from local to central operations centers

Midstream: Trans-Anatolian natural gas pipeline—TANAP

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—Customers asking for Collaborative Operations

March 13, 2018 Slide 20

Continued access to expertise via digital services

Analytics Predictive maintenance

Optimization Cyber and safety

Ops support

Control

Analytics and Visualization

Simulation

Cyber Security

Safety Management

Operations and Technical Support

Alarm Management

Emission Monitoring

Energy Optimization

Performance Optimization

Condition Monitoring

Asset Health Predictive Maintenance

Control Centers

CustomerOperations Center/ HQ

Customer assetse.g. rigs, mills, vessels

ABB Collaborative

Operations Center

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Partnerships

March 13, 2018 Slide 21

SELECTION

Leverage IT innovations + complementary OT expertise

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—Summary

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—Conclusion

March 13, 2018 Slide 23

1 Digital opportunity is here 2 Digital is transforming every aspect of industry 3 Need to combine IT innovations with OT expertise 4 ABB has a wide range of industry-leading solutions 5 Industry-standard platform components leverage an ecosystem of innovation 6 ABB has unparalleled expertise in technology, information, and domain know-how 7 210+ ABB Ability™ solutions are ready now

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—The time to embrace digital is now. Close the loop.

March 13, 2018 Slide 24

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