Transformation in the energy sector seems to make headlines with an increased frequency. Whether it is big data, industrial revolution or advanced analytics: the rise of the digital revolution has an enormous impact. The rate of change is speeding with each passing year. Under such circumstances, how will Oil and Gas (O&G) service companies, stay ahead in the game and also build a sustainable advantage in the transforming world?
These organizations, therefore, need to work as per the need of the hour. It should all begin with a wave of innovation and shift to few cost-effective operating models, supply chain reconfiguration, modularization/standardization in development, production efficiency, faster response, cost effective solutions and shorter turnaround time.
Sustenance Engineering is no longer a choice – It’s Imperative:
Oil & Gas Industry is highly cost competitive owing to many unknown variables encountered during the drilling process. Indeed, drilling operation is the most costly phase in the industry as it represents nearly one-fourth of the total oil-field expenditure. Its efficiency is mandatory, as it will affect the whole investment technically and financially. An efficient, well-designed and well-operated drill job must ensure maximum safety for operating engineers and workers, with minimum damage to the formation, lowest costs and shortest time for the operations.
Interruptions in the drilling program can cost millions of dollars by way of lost time, wasted tool rentals, idle manpower, and production loss. To be able to respond to the events during the drilling process in a timely manner is vital to the program. The service companies, with the limited manpower, and being engaged in day to day activities find it difficult to mobilize and meet such requirements adding to the total cost of operations. Hence, at this juncture, sustenance engineering adds value in the product life cycle ahead of obsolescence by extending the life of components and systems, which otherwise would have been prematurely scrapped.
The Passing Shift to Sustenance Engineering
Due to the need to comply with the increasing market pressures, many industry players have to resort to layoffs and also divert their focus from innovation & research to current business. Hence, pushing away growth and shrinking productivity, efficiency across operations. A more sustainable option to this is a paradigm shift to ‘Sustenance Engineering’, by outsourcing services. This brings positive outcomes, strengthens the business, and is scalable for growth during the eventual industry upturn.
Navigating through the fast-changing environment, O&G service companies availing sustenance engineering will be able to ensure solution recommendation, redesign reported issues and achieve new objectives more efficiently. It will also help the organization to add value and manage product structure, validate new design, define inspection needs, procedures and also design standardization. Indeed, an improved paradigm shift in the direction of assembly & disassembly procedures along with achieving operational excellence can be the driving force to competitive advantage.
Such strategic steps can provide the benefits of faster response, quicker turnaround and collaborative partnership. Hence, outsourcing can be a beneficial, sustainable, and long term partnership in terms of benefits, profitability, and viability for O&G service companies.
O&G Industry gears up towards the Future
How & What to Outsource?
A strategic and thinking partner uses technological solutions and deep domain understanding to attain operational excellence, address industry challenges and global business environment, expertise & cost. They leverage and provide a closer outlook to technical problems in a systematic manner, which eventually helps to carry out additional activities in the PLM cycle, like managing supply chain; creation of technical documents for operation, maintenance, assembly, disassembly, etc. Their ability to penetrate the requirements of the new market seamlessly helps in acquiring product certification activities; product configuration management including part management and obsolescence. Therefore, it ensures that such engagement helps in delivering maximum value across the lifecycle.
A Success Story
An Oil & Gas market leader wanted to convert the existing Drilling Motor into a WO Motor. The drilling motor had to be designed to rotate anticlockwise unlike the clockwise rotating drilling motor. This involved outsourcing the task for release of all components and assembly drawings for manufacturing. With this step, they were able to significantly convert the relevant components of the standard drilling Motor to WO Motor of the same size and at the same time make it rotate in the opposite direction so as not to unlock the screwed in casing. The deep domain knowledge and expertise also helped in understanding the flow path and reorient to suit the reverse rotation, along with redesigning of all the subassemblies.
The recent conditions in the developed world, have an enormous existing infrastructure that affects the Oil and Gas industry. However, the rapid adoption of digital transformation and other technological changes introduces new complications in running the system. At this juncture, it is imperative for companies to opt for, a sustainable strategy by adopting sustenance engineering process. Strategic outsourcing enables operational excellence and helps continue serving customers without compromising on quality and excellence.
By taking into consideration a strategic and thinking partner with decades of experience in mechanical engineering design and presence in multiple domains synergizing cross-domain expertise, one can further benefit with better returns and position the organization to scale and grow for the future. Expertise in a plethora of services for every stage in Product Life Cycle Management, ideal local-global operational set-up and leveraging country-specific cost advantages for a cost-effective solution will help get positioned in a broader energy system. Guided by a strong team of engineers in the field of digital transformation will, therefore, help map the route to Industry 4.0.
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