The oil and gas sector has long been known for its complex operations, high-risk environments and immense technological challenges. With the emergence of digital transformation, multiple new avenues for innovation, efficiency and safety have opened up within this sector. The digital revolution has paved the way for remarkable advancements in various industries, and the oil and gas sector is no exception. One innovative technology that has gained traction in recent years is the concept of “digital twins”. Digital twins are virtual replicas of physical assets, processes or systems that enable real-time monitoring, analysis and optimisation. In the upstream industry of the oil and gas sector which involves exploration activities, digital twins are revolutionising exploration, production and operational efficiency.
There has been lot of focus on the adoption of digital twins especially during the pandemic and now in the post-pandemic world. As per recent research, a number of industries have shown improvement in terms of trends, perspective and maturity to adopt digital twins. However, merely 16 per cent of the industries have a well-defined clear digital strategy in place to work on. Without a clear strategy, it is difficult to move towards the kind of skills, culture, digital backbone and investments that are required to move forward with the deployment of digital technologies.
Investments and technological interventions being deployed across the globe in the upstream industry are largely based on remote operations. Meanwhile, investments in analytical tools stand at about 16 per cent. Digital twins can be deployed at a component level, asset level, system level and process level. Further, if a collaborative approach has to be undertaken then digital twins can be initiated at the component level as well. Asset level is the first bedrock to initiate digital deployment and that is when digital twins can capture the equipment and the process and cover the entire operations.
Digital twins in upstream industry
In the upstream industry, digital twins can be used in training as well as upskilling manpower. Safety management is also an area where digital twins can be deployed to provide a safe and controlled environment for training personnel as well as allowing them to practise complex procedures and enable emergency responses. It can be fruitful at the operational and optimisation levels as most of the efforts are being attempted at the predictive maintenance level.
The emerging generation of talented individuals is becoming increasingly intrigued by the innovative concept of digital twins from a mechanical perspective. They are getting attracted because of the sheer multitude of technologies which come into play when they try to build digital twins.
Edge devices is one of the technologies which can be used in upstream operations by organisations having access to 5G or the 5G edge interface. This technology is dependent on the roll-out and availability of network. Elements such as artificial intelligence (AI), machine learning (ML) and cloud can be executed but their implementation is difficult as a multitude of technologies exist.
Factors limiting the digital twin technology in the upstream industry
The proprietary nature of the industry and multitude systems pose a major challenge for the implementation of digital twins in the upstream segment. Also, the integration of data and information is a tedious task for stakeholders. Meanwhile, data quality and data sourcing pose problems. The significance of cybersecurity is not being emphasised enough. How can data be exposed, to what degree, and what measures can be taken to ensure its security from a cybersecurity standpoint is still a challenging part.
The upstream industry will struggle with the dilemma of bringing in the edge cloud technology by private means or by allowing their machine data to move into the cloud itself. This is because the data which is lying in supervisory control and data acquisition (SCADA) systems is humongous and requires larger processing to evaluate the cloud capabilities and availabilities.
The shortage of skills, which poses a major challenge to expanding the adoption of digital twins in this sector, is encountered by both developed and developing countries alike. How can the industry rationalise its return on investment (ROI) through the implementation of this technology, and what are the potential use cases that can substantiate investment predictions related to the sector are also major concerns. In addition to this, the interoperability of various systems will be a challenge as the upstream industry is not equipped with the advanced set of technologies.
The way forward
Many companies are exploring different sets of technologies that come under digital twins. Public sector units (PSUs) have created a digital avatar. This is merely the front end of the set of technologies that would be used in digital twins.
Manufacturing units are moving ahead with faster deployment of the industrial cloud concept which will enable sourcing of information for the central system. It will help build stimulations at the equipment level. This is also where the concept of command control centres sets in wherein information is not dealt with in silos.
In order to adopt digital twin solutions, companies should start with small-scale testing to assess various aspects and evaluate integration requirements. They should analyse the skill scenario and simulate scalable parts to ascertain feasibility. Subsequently, a clear ROI should be demonstrated. It is essential to establish standards for monitoring data quality and ensure the presence of competent partners and skilled personnel within the organisation who can comprehend and effectively implement these concepts.
There is a general rule of thumb for testing. If the changes made on the platform exceed 30 per cent in each iteration, it becomes challenging for the industry to justify the time and effort invested. However, if the changes are below 30 per cent, the implementation can still be attempted.
In sum
Despite various challenges such as data integration, data sourcing and cybersecurity, the potential of digital twins in the upstream industry is immense. Indian companies are taking steps in this area by increasing the level of investments to adopt digital twins in their sectors. As technology continues to advance and more data becomes available, the possibilities for innovation and improved performance will multiply.
Embracing digital twins will enable oil and gas companies to navigate the challenges of an evolving energy landscape and position them well on the path to long-term success. The benefits of digital twins extend beyond operational efficiency, providing safer working environments, improved decision-making, and optimised resource management. The upstream industry is at the forefront of this transformative technology, and the continued development and adoption of digital twins will undoubtedly shape the future of the oil and gas sector.
Based on a presentation by Harsh Kumar, Partner, Technology Consulting, Ernst and Young, at a recent Indian Infrastructure conference