BAKU, Azerbaijan, Dec.17
By Leman Zeynalova – Trend:
Digital technology can reduce oil production cost by 10 -15 percent by 2035, according to Major Trends in the Global Liquid Hydrocarbon Market to 2035 report released by Russia’s Lukoil company, Trend reports.
“We anticipate that the widespread use of digital technology across the oil industry is capable of slowing down the decline of production at mature fields and reduce the cost of oil production by 10 -15 percent by 2035. As a result, the reduction of costs through digital technology is sure to curb the growth of new project production costs amidst deterioration of the resource base,” reads the report.
Lukoil said that an important trend of recent years is the great attention of international energy companies to the use of digital technologies in various aspects of their activities.
“Digital technology is normally defined as a set of engineering solutions designed to improve the operating performance of an enterprise, such as predictive analytics using artificial intelligence, big data analysis, computer vision, creation of digital twins of assets, or robotic automation of chores.”
The use of digital solutions in the oil industry can considerably increase the efficiency of modelling and forecasting various production processes, shorten the time needed to select optimal equipment, minimize downtime and maintenance periods, and ultimately reduce the cost of field development, according to Lukoil.
“Digital technology also contributes to a better understanding of the geology of oil reservoirs. This results in a lower exploration risk,” reads the report.
LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting for more than 2 percent of the world's oil production and around 1 percent of the proved hydrocarbon reserves.
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