The Evolution of Asset Management: Harnessing Digitalization and Data Analytics

Abstract

Underwriting the costly insurance of complex oil and gas projects — with every one unique — requires careful risk assessment of numerous factors via long-standing criteria. But two risk-mitigation factors not currently considered are (a) the increased operational visibility; and (b) predictive maintenance made possible by today’s advanced asset management technologies. Those technologies include the digital twin, data analytics, and secure Internet of Things (IoT) connectivity. With these technologies, E&P operators can now better quantify the probabilities of untoward events and mitigate their risks, improving their HSE posture, and potentially reducing the cost of their insurance premiums. In fact, one E&P OEM using digitalization to better quantify risks related to project errors and omissions led to a $750,000 premium reduction from its insurer, one of the world’s largest insurance companies.