Digitalization's Role in Shaping the New Energy Landscape

Abstract

The realization that fossil fuels are a limited resource, and the growing awareness of the negative impact their emissions have on the planet, has impacted every oil and gas major. The global challenge is expressed in the "energy trilemma" of: Enough Energy, Affordable Energy and Sustainable Energy. The industry must adapt, in terms of cost and environmental footprint. In this paper we discuss how digitalization and renewable sources can drive innovation to meet these challenges. We will use current long-range forecasts to understand how the global energy mix is expected to change over time, and illustrate how different scenarios are likely to affect the offshore industry. We also study how digitalization and hybridization with technologies like offshore wind and power-from shore, can reduce costs, energy consumption and emissions. There are many trends accelerating the introduction of new energy sources These include: Global population growth and changing dynamics: "Millennials" bring with them their own expectations about technology, the pace of work and accountability. Equally influential, is the challenge to feed and power the 2 billion poorest and the extra 2 billion people expected by 2050.Transportation changes: Road, aviation and shipping account for more than 60 percent of the world's oil consumption and key to limiting the impact on the climate.Energy generation revolution: The grid needs to cope with the increased power demands and to incorporate and expand the contribution of renewablesRise in distributed generation: Hybridization pilot projects to use offshore wind turbines to power e.g. water injection systems. There are a range of technologies described, which will provide the transformational step change to enable companies to transition into the broader energy ecosystem. However, the real game changer lies in integrating these technologies in a way that drives the evolution from connected operations, to collaborative operations and ultimately autonomous operations to achieve maximum value. We will describe how, by properly using digital technologies, the sector can not only reduce capital and operating expenditures by up to 30 percent but also use energy optimization and hybridization with renewable energy sources to reduce emissions and help oil and gas operators do their part in addressing "The Energy Trilemma".