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HOW DO YOU
COMPETE
WITH FREE?
OIL & GAS
54% of industry executives think
their growth strategies are at risk.
THEY ARE RIGHT.
HIGH ALERT!
Oil demand is
expected to peak in
the next 20 years.
54%
Hydrocarbons’
dominance in the energy
mix will fall—by some
estimates, from 80
percent today to just
above half by 2060.
In some scenarios,
energy costs will
ultimately trend to
zero.
of O&G execs
recognize that
technology is still a
barrier to growth.
DIGITAL WON’T SAVE THEM—YET
THE GOOD NEWS…
With advanced analytics, they
can multiply the value of data
38% 87%
of O&G execs believe
their organizations are
data-driven. In truth, they
actually use less than 5%
of the data at their disposal.
The cumulative impact of analytics is a ROI
that’s nearly 4X the baseline
0.8X
2.1X
0.6X
0.3X
3.8X
THE ANALYTICS ADVANTAGE
Analytics produce
actionable insights and
better, faster decisions that:
LOWER costs
INCREASE responsiveness
REVEAL new, profitable business models
Analytics resolve issues across the value chain that
have long been considered unresolvable.
DEVELOPMENT OPERATIONS COMMERCIAL TOTALPORTFOLIO
Dynamic risk-return assessments can
predict the likely evolution of an asset’s
financial performance.
These insights help companies identify the
best targets, thereby reducing capital
investments and boosting productivity.
THE ANALYTICS ADVANTAGE:
PORTFOLIO MANAGEMENT
In portfolio
management,
a 10 to 15%
improvement
in capital
efficiency
is possible.
THE ANALYTICS ADVANTAGE:
DEVELOPMENT
Analytics can make an integrated
and efficient approach to field
development possible by:
PINPOINTING
optimal well locations
INFORMING
design decisions
IDENTIFYING
and remediating project risks
In asset
development,
companies can lower
capital expenses by
10 to 20% and
achieve a 5 to 10%
improvement in
productivity.
THE ANALYTICS ADVANTAGE:
OPERATIONS
In operations,
companies can
boost their
productivity
by 2 to 7%
and reduce
operational costs
by 5 to 15%.
Analytics pinpoint needed interventions at
the wellhead, refinery or other facilities to
maximize throughput.
Continuous measuring and monitoring
reveal how to reduce nonproductive time
and pull production forward.
Machine learning and AI accurately
predict equipment failure and ensure
production matches expectations.
In the future, the greater value will lie in
dispatching molecules to the end-user
who will pay the most.
Analytics can help companies identify
the most profitable plays—not just at
the wellhead, but across the value chain.
THE ANALYTICS ADVANTAGE:
COMMERCIALIZATION
In the area of
commercialization,
a 2 to 5% margin
uplift is possible.
Leading companies will:
• Cast a system-wide data net
• Apply analytics to identify
(and redefine) causal
relationships between
domains
• Unlock additional value by
linking domains
ANALYTICS IN THE CORE
PORTFOLIO
OPERATIONS
DEVELOPMENT
COMMERCIAL
ADVANCED
ANALYTICS-
DRIVEN
SYSTEM-WIDE
OPTIMIZATION
ANALYTICS IN THE NEW
Advanced data analytics help companies pivot
to new business models in three ways:
By enabling a better understanding of
consumers’ needs and behaviors
By determining the relevance and
potential value of different models
By rethinking the role and placement of each
molecule to maximize bottom-line impact
1
2
3
Analytics will
help industry
leaders identify
what they sell,
how they sell it,
and to whom.
CONNECTING THE DATA DOTS
To be competitive in an era of “free” energy, companies need to make
sure four elements are in place:
THE RIGHT TALENT. Welcome talent from other disciplines to gain analytics
firepower and insights.
THE RIGHT ANALYTICS BACKBONE. Use advances in computing power,
storage, automation and data science to consider all aspects of the value chain.
THE RIGHT NORTH STAR. Shift from managing capital risk to managing the
speed and accuracy of decision-making.
THE RIGHT PARTNERS. Create ecosystems to ensure molecules are dispatched
to end uses that exhibit the greatest demand.
Learn more about how advanced analytics can
help oil & gas companies shift the P&L equation.
Read the full report.
Copyright © 2018 Accenture. All rights reserved. Accenture, its logo and High Performance Delivered are trademarks of Accenture. 12
JOIN THE
CONVERSATION:
@ AccentureStrat Follow us on LinkedIn
OIL & GAS: HOW DO YOU
COMPETE WITH FREE?

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Oil & Gas: How Do You Compete With Free?

  • 1. HOW DO YOU COMPETE WITH FREE? OIL & GAS
  • 2. 54% of industry executives think their growth strategies are at risk. THEY ARE RIGHT. HIGH ALERT! Oil demand is expected to peak in the next 20 years. 54% Hydrocarbons’ dominance in the energy mix will fall—by some estimates, from 80 percent today to just above half by 2060. In some scenarios, energy costs will ultimately trend to zero.
  • 3. of O&G execs recognize that technology is still a barrier to growth. DIGITAL WON’T SAVE THEM—YET THE GOOD NEWS… With advanced analytics, they can multiply the value of data 38% 87% of O&G execs believe their organizations are data-driven. In truth, they actually use less than 5% of the data at their disposal.
  • 4. The cumulative impact of analytics is a ROI that’s nearly 4X the baseline 0.8X 2.1X 0.6X 0.3X 3.8X THE ANALYTICS ADVANTAGE Analytics produce actionable insights and better, faster decisions that: LOWER costs INCREASE responsiveness REVEAL new, profitable business models Analytics resolve issues across the value chain that have long been considered unresolvable. DEVELOPMENT OPERATIONS COMMERCIAL TOTALPORTFOLIO
  • 5. Dynamic risk-return assessments can predict the likely evolution of an asset’s financial performance. These insights help companies identify the best targets, thereby reducing capital investments and boosting productivity. THE ANALYTICS ADVANTAGE: PORTFOLIO MANAGEMENT In portfolio management, a 10 to 15% improvement in capital efficiency is possible.
  • 6. THE ANALYTICS ADVANTAGE: DEVELOPMENT Analytics can make an integrated and efficient approach to field development possible by: PINPOINTING optimal well locations INFORMING design decisions IDENTIFYING and remediating project risks In asset development, companies can lower capital expenses by 10 to 20% and achieve a 5 to 10% improvement in productivity.
  • 7. THE ANALYTICS ADVANTAGE: OPERATIONS In operations, companies can boost their productivity by 2 to 7% and reduce operational costs by 5 to 15%. Analytics pinpoint needed interventions at the wellhead, refinery or other facilities to maximize throughput. Continuous measuring and monitoring reveal how to reduce nonproductive time and pull production forward. Machine learning and AI accurately predict equipment failure and ensure production matches expectations.
  • 8. In the future, the greater value will lie in dispatching molecules to the end-user who will pay the most. Analytics can help companies identify the most profitable plays—not just at the wellhead, but across the value chain. THE ANALYTICS ADVANTAGE: COMMERCIALIZATION In the area of commercialization, a 2 to 5% margin uplift is possible.
  • 9. Leading companies will: • Cast a system-wide data net • Apply analytics to identify (and redefine) causal relationships between domains • Unlock additional value by linking domains ANALYTICS IN THE CORE PORTFOLIO OPERATIONS DEVELOPMENT COMMERCIAL ADVANCED ANALYTICS- DRIVEN SYSTEM-WIDE OPTIMIZATION
  • 10. ANALYTICS IN THE NEW Advanced data analytics help companies pivot to new business models in three ways: By enabling a better understanding of consumers’ needs and behaviors By determining the relevance and potential value of different models By rethinking the role and placement of each molecule to maximize bottom-line impact 1 2 3 Analytics will help industry leaders identify what they sell, how they sell it, and to whom.
  • 11. CONNECTING THE DATA DOTS To be competitive in an era of “free” energy, companies need to make sure four elements are in place: THE RIGHT TALENT. Welcome talent from other disciplines to gain analytics firepower and insights. THE RIGHT ANALYTICS BACKBONE. Use advances in computing power, storage, automation and data science to consider all aspects of the value chain. THE RIGHT NORTH STAR. Shift from managing capital risk to managing the speed and accuracy of decision-making. THE RIGHT PARTNERS. Create ecosystems to ensure molecules are dispatched to end uses that exhibit the greatest demand.
  • 12. Learn more about how advanced analytics can help oil & gas companies shift the P&L equation. Read the full report. Copyright © 2018 Accenture. All rights reserved. Accenture, its logo and High Performance Delivered are trademarks of Accenture. 12 JOIN THE CONVERSATION: @ AccentureStrat Follow us on LinkedIn OIL & GAS: HOW DO YOU COMPETE WITH FREE?