Information Technology in the Oil and Gas Industry

2024

List of particularly significant projects to replace imported software in oil and gas, some projects are delayed

The Industrial Competence Center (IC) "Neftegaz, Petrochemicals and Subsoil Use" is the leader among all existing ICs in terms of the number of projects that have the status of particularly significant. Some of them have already been completed, and some are delayed. Representatives of the Neftegaz, Petrochemicals and Subsoil Use ICC reported on the current status of projects and plans on demodon on December 13, 2024. Read more here.

IT import substitution in the oil and gas sector: what has already been done and what prospects - TA opinions

According to the decree of President RFVladimir Putin, from January 2025, oil and gas sector enterprises will not be able to use foreign software on critical infrastructure. Thus, companies in this industry have 2.5 months left to fulfill this requirement, and most likely they need more time. TAdviser spoke about this with market participants in mid-October 2024.

Alexander Chernov, manager of the digital solutions development group of Reksoft Consulting, estimates the level of IT import substitution in the oil and gas industry at 40-60%. The TAdviser interlocutor attributed operating systems and office software to the leading areas of import substitution in the sector. He also drew attention to "certain successes in replacing accounting circuit systems."

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As for such areas as, for example, specialized application software, virtualization software IT- infrastructure, computing equipment and data storage systems, it should be noted that import substitution faces certain objective difficulties, since the capabilities of Russian analogues do not yet fully meet business requirements, - added Chernov.

Transneft told TAdviser that the company is meeting the deadlines of the presidential decree. According to Andrey Badalov, Vice President of Transneft, within the framework of the IT landscape, the company managed to transfer a number of main components of corporate information systems and PCS to the Russian technology stack in accordance with the decree of the President of Russia.

The CEO of the IT company RDN Group Dmitry Rossikhin says that ERP systems are not replaced everywhere in the oil and gas sector: most companies still use ON SAP other foreign manufacturers. In the category CRM of solutions, there are trends in the transition of the oil and gas business to the Russian "" and Bitriks24 domestic forecasting systems. As for BI platforms, many companies in the industry are "on," Microsoft Power BI but there is an active substitution for or PostgreSQL Post-Only, Rossikhin added.

According to Maxim Berezin, director of business development at Orion soft (fulfilling orders, including for fuel and energy complex enterprises), oil and gas companies have replaced their infrastructures by less than 30%. At the same time, many participants in this industry replaced VMware products, and also switched to Russian OS and office applications, he said.

Data Scientist Softline Digital Polina Lominskaya notes that Western operating systems are gradually being replaced by the domestic product RED OS. Red Database also meets the requirements of the oil and gas industry as a data and data storage management system, she is sure.

According to Rustam Rustamov, Deputy General Director of Red Software, many workstations and servers have already been transferred to Russian IT solutions in the oil and gas sector. Some projects on the transition to domestic software by October 2024 are at an active stage of implementation. He called the compatibility of the used software on the ground the main problem.

Maxim Vlasyuk, Director of the Arenadata Department for Industrial Sector, noted that the oil and gas industry still has difficulties with import substitution of specialized software for process management, geological exploration and production. Migration here takes time as Western software products have been used for decades and integrated into many business processes. However, domestic solutions appear on the market that seek to close this gap, he added.

Some enterprises create their own hydrodynamic simulators. So, Rosneft has its own simulator and digital system for analyzing field development. In collaboration with IT companies, computer-based vision tools are developed and implemented that monitor and prevent oil spills on well pads.

Active IT import substitution in the oil and gas sector is indicated by the fact that by mid-October 2024 register of Russian software , according to the code 12.06 (Software for solving industry problems in the field power engineering specialists and the oil and gas industry), according to the classifier approved by order of 22.09.2020 No. 486, 254 entries are indicated, the head of the business development department notes solutions. Axoft Nikita Chernyakov

Director of Strategic Marketing Docsvision"" Sergey Kuryanov agrees that migration to Russian software in the oil and gas sector is taking place actively. Almost all companies in the industry, according to the expert, have already chosen the main solutions for OS and - DBMS as a rule, this is it. Astra Linux At the Postgres Professional same time, several projects of this kind are on pause due to the difficulties of acquiring a new "hardware" for them, Kuryanov said.

Oleg Shevtsov, General Director of Transenercom (integrator of IT solutions, including for the fuel and energy complex), believes that the fuel and energy complex companies have extremely strict conditions for a complete transition to domestic software and hardware. For example, in the register of radioelectronic products there are far from all the required components, and often they do not meet the technical requirements, he continues. Shevtsov also pointed to problems such as weak compatibility of Russian and foreign products, the inflated cost of domestic IT solutions and the lack of specialists.

At the same time, the expert drew attention to the fact that the Russian market of situation centers is actively developing - software and hardware complexes of the monitoring, dispatching and control system - as well as dispatch control systems, monitoring and information transmission systems and APCS of individual substations.

Dmitry Ovchinnikov, head of the Laboratory for Strategic Development of Cybersecurity Products of the Analytical Center for Cybersecurity of Gazinformservice, noted that basic IT services such as DNS and DHCP have been successfully replaced in the oil and gas sector. Also, operating systems were successfully replaced with domestic ones, and active network equipment was replaced in the PCS segments. By October 2024, there is a partial update of programmable logic controllers and control mechanisms, but there are certain difficulties here.

Such segments of the PCS are often tied to the performance of narrow tasks, where the main criterion is do not touch. Therefore, customers can safely find Windows XP and other legacy systems. This is due to the fact that a complete replacement of equipment will require very serious costs comparable to the opening of a new facility. That is, the task of operation is not just to modernize an oil or gas facility, but to carry out a full redesign cycle, with the receipt of appropriate permits from supervisory authorities, coordination of design and working documentation. Even with a good budget, such events are not easy to carry out quickly, "Ovchinnikov explained.

In the IT equipment segment, import substitution in oil and gas companies is worse, many TAdviser interlocutors agree. According to  Alexander Kazennov, head of corporate practices at ALP Group, non-critical infrastructure is sometimes transferred to the solutions of Chinese disk subsystem vendors, but critical equipment still rests on leading foreign suppliers such as Seagate, Western Digital and Hitachi. Only supply channels have changed: companies purchase the necessary processors, disk subsystems, server racks and memory not directly, but through parallel imports, Kazennov said.

Timur Rakhimov, head of the department for work with fuel and energy complex enterprises at Satel, says that in order to switch to Russian software, fuel and energy complex enterprises need to decommission basic equipment such as generators and transformers, which can take up to six months and provoke an energy shortage. Adaptation of Russian products, especially highly specialized control systems, also causes great difficulties. Critical infrastructure requires continuity of operations, and the transition to domestic counterparts without sufficient time for testing and integration creates the risk of disruptions in the industry, the TAdviser interlocutor emphasized.

Market participants interviewed by TAdviser believe that not all oil and gas companies will be able to comply with the president's decree on the transition to Russian software. In the next 1-3 years, objects with foreign software will also remain. Dmitry Ovchinnikov notes that it is not profitable to re-equip some of these facilities, since their service life is coming to an end.

Vladimir Molodykh, director of platform products at Zyfra Group, claims that in some cases domestic decisions by October 2024 are only at the stage of testing or even choosing. The import substitution process is complicated by increased requirements for Russian products, he said.

In October 2024, the Association of the Largest Consumers of Software and Equipment (AKP VET), which includes such enterprises as Rosatom, Gazprom Neft, Transneft, Russian Railways, Дом.РФ, Roscosmos, Rostec, has prepared proposals for amending the bill on critical information infrastructure, the essence of which is to adjust the timing of the transition to the preferential use of Russian solutions by individual agreement of the company with the relevant federal executive bodies. At the same time, it became known that the Ministry of Digital Development is preparing a deferral at the request of mandatory compatibility with two domestic operating systems for industrial software from the register of Russian software. For heavy software, we are talking about 2026. The Ministry of Digital Development told Vedomosti that "according to certain classes of software" there will be a delay "depending on the degree of readiness of products." It is possible that the oil and gas business will receive a delay.

According to forecasts of the Ministry of Energy of the Russian Federation, the digital transformation of the oil industry until 2035 after its completion may begin to bring more than 700 billion rubles a year. In addition, it will help reduce exploration and production costs by 10-15%, the timing of commissioning facilities - by 40%.

Gazprom began using robots to detect methane leaks. VIDEO

In October 2024, it became known that Gazprom Transgaz Tomsk LLC, together with Cognitive Pilot, presented a robotic mobile platform designed to detect methane leaks at production facilities. The new development, called the "Robotic multifunctional mobile crawler," passed the first stage of testing in September 2024 at the Volodino compressor station. Read more here.

RDIF launches digital investment fund for oil and gas sector

On September 26, 2024, the Russian Direct Investment Fund (RDIF) and leading Russian oil and gas companies announced the creation of an investment fund for the development of critical technologies. The new structure was called "Technologies for the Oil and Gas Industry." Read more here

The digital future of the oil and gas industry: Key insights from Victoria King

In the era of rapid digitalization, the oil and gas industry is on the verge of revolutionary changes. Artificial intelligence (AI) and, in particular, generative AI (Gen AI) open up unprecedented opportunities to optimize exploration, drilling and production, improve safety and efficiency. Viktoriya Korol, an expert with a unique combination of expertise in applied mathematics, computer science and the oil and gas sector, shares her vision of key challenges and opportunities for AI applications in the industry. Read more here.

How generative AI helps the Russian oil industry

The Russian oil industry has begun to actively use generative artificial intelligence (AI) to solve complex geological exploration problems. This became known in August 2024.

Vygon Consulting conducted a study that evaluated the use of generative AI models to solve the problem of assessing the chance of geological success (gCoS). This task is the main one in the process of hydrocarbon exploration and is based on data from geophysical surveys, seismic surveys and analysis of rock samples. According to company representatives, the correct extraction of such data is critical for the successful conduct of geological exploration, since errors can lead to significant financial losses.

According to the researchers, modern generative AI models are already beginning to play an important role in geological exploration (exploration), reducing the time spent on data search and analysis, as well as increasing the effectiveness of research. The models help reduce geologists' time spent searching and analyzing data and improve performance, analysts said.

In Russia, according to Rosnedra, about 50 hydrocarbon fields are discovered annually, and the average volume of technically recoverable oil reserves is gradually decreasing and amounts to only about 4 million tons. At the same time, there are a number of new regions (deep horizons of Western Siberia, Taimyr, Eastern Siberia, the shelves of the northern seas and the Far East), where discoveries can be significant. Due to their lack of knowledge, an LLM-based gCoS tool can be very useful.

In addition, the geologist's assistant can be used both by private oil and gas companies and by Rosnedra's subordinate structures to form structured databases based on a significant amount of accumulated geological information and create tools for reviewing geological reports, design and technical documents, as well as to prioritize regional exploration. In particular, we are talking about the use of generative AI for the selection of analog deposits, technical and economic parameters, and resource assessment.

The study used a specially designed neural network that analyzed geological reports. The study involved 50 articles containing information on 830 rock samples. The neural network conducted data extraction, checking them using verified reference books, including data on 900 geological formations in 37 oil and gas basins.

The results of the study showed that closed foreign AI models such as the Claude 3.5 Sonnet and GPT 4o do a better job of extracting data than their counterparts. However, Russian models are still inferior in terms of quality of work, which is due to restrictions in their functionality. However, experts note that improving these models is possible through additional research and development.

Perm Polytechnic scientists have developed an AI-based model for better control of oil production

Perm Polytechnic scientists have developed an artificial intelligence-based model to better control oil production. The university announced this on July 8, 2024. Read more here.

How supercomputers in Russia help oil workers explore the bowels

Russian oil workers use supercomputers, as well as introduce artificial intelligence and other digital technologies to speed up calculations and increase the efficiency of subsoil exploration. This is stated in the materials released at the end of May 2024.

HPC systems are used for analysis big data - primarily seismic. Russia The NK Seismic Information Storage Center (TsKhSI) operates Rosneft in the region. As of May 2024, it contains more than 5 PB of seismic data - one of the world's largest bases in the oil and gas industry. The work of the center is based on the information system "KBD" Geobank-Seismic Survey, "developed at the Institute" RN-KrasnoyarskNIPIneft "(part of the research and design block of Rosneft). This is a unique system that is said to have no analogues in Russia and in the world. Navigation through the information system is carried out both according to the interactive scheme of subsoil use and using queries to the database.

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Rosneft has digitized the entire oil production process and launched a digital field project. The full-scale digital twin allows you to remotely monitor the production and transportation of oil in real time, as well as monitor the use of personal protective equipment, the movement of equipment and personnel. In addition, the digital twin accompanies the entire cycle of seismic exploration and the interaction of participants in oil exploration projects.Gazprom

Supercomputer platforms support the operation of AI algorithms. For example, such tools can identify models of rock faults from seismic data. Advanced mining companies use cluster computing and 3D modeling to process and interpret seismic data. This significantly speeds up calculations and increases the speed of interpretation of data. According to the results of the analysis, as the Vedomosti newspaper notes, experts draw conclusions about the structure of the subsoil, make decisions on drilling a well, test hypotheses, assess oil-bearing neighboring areas and build models of larger geological objects.^[1]

How generative AI will help Russian oil and gas companies earn an additional 343 billion rubles

The total effect of the use of generative artificial intelligence (Genii) for Russian oil and gas companies can be up to 343 billion rubles a year. This can be achieved by improving labor productivity and production efficiency, as stated in the study "Vybon Consulting," the results of which were published on April 3, 2024. Read more here.

2023

IT expenses of oil and gas companies increased by 17% over the year and reached ₽53 billion

Spending on information technologies in the oil and gas sector in Russia in 2023 reached ₽53 billion, which is 17% higher than in 2022. This is evidenced by the data of the analytical agency of the IT holding T1, which were published on October 11, 2024.

Experts attribute the increase in costs to the need to switch to domestic software and equipment in the context of import substitution.

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Deputy General Director of T1 and Managing Director of NOTAKIRILL Bulgakov noted that companies have to not only switch to Russian software due to the lack of technical support for Western solutions, but also change equipment, introducing modern technologies to automate processes.

The study showed that 43.8% of the IT costs of oil and gas companies were spent on the acquisition, adaptation and integration of software products. At the same time, 19% of this amount fell on Russian software. However, the transition to domestic developments is uneven: if 79.2% of industry companies use data analysis systems from Russian developers, then only 28.8% switched to Russian system software.

Information security costs accounted for 8.2% of total IT costs, equivalent to approximately ₽4,5 billion. Analysts consider this amount insufficient, given that most of the facilities belong to critical infrastructure. The most common data protection features are electronic signature (90%), strong authentication (85%), and firewall (76%).

IT equipment accounted for 22.7% of costs, but the level of import substitution in this segment remains low. Thus, only 12.7% of oil and gas companies use Russian-made personal computers, and only 6.3% use domestic servers.

Kirill Bulgakov predicts that in 2024 the dynamics of investment in digital training will remain at the level of 10-20%.^[2]

Spending of the global oil and gas sector on AI solutions for the year increased to $2.8 billion

The volume of the global market for artificial intelligence technologies for the oil and gas sector in 2023 reached $2.8 billion. For comparison, a year earlier, this figure was approximately $2.5 billion. In the future, stable growth is expected in the area under consideration. This is stated in a study by BCC Research, the results of which were published in mid-May 2024.

BCC Research statistics cover software, services and hardware. At the same time, various areas of application of AI are considered - from the search for oil and its production to processing and auxiliary functions. It is said that AI technologies can be used to solve a variety of problems.

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In particular, AI allows you to analyze huge amounts of information with high speed, including sensor readings, 3D images, aerial photography data, etc. Based on this information, maps of landscapes and the environment can be formed. The use of neural networks allows you to increase the detail of digital mapping models. As a result, the search for new deposits is accelerated: for example, it is possible to automatically isolate oil-bearing layers in the structural model of the selected area using computer vision.

In addition, AI can analyze logs, satellite images and geological indicators to detect patterns and anomalies indicating potential oil deposits. This approach allows exploration teams to more accurately identify prospects for drilling, radically reducing exploration time, costs and environmental impact by focusing efforts on areas with a high probability of oil presence. AI not only makes it easier to identify new reserves, but also optimizes operations in existing fields, increasing production rates and extending the life of mature assets.

AI also makes it possible to plan the necessary infrastructure, such as roads and buildings, with great accuracy. Using AI, digital twins of certain objects can be created: this helps to simulate different situations and reduce the time spent on finding optimal solutions.

Plus, AI algorithms make it possible to predict service. Traditional approaches to technical work are often inefficient: maintenance can be planned without a clear need, which leads to additional costs. AI helps to analyze sensor readings, historical records and operational data in real time, which allows you to predict potential equipment failures. This proactive model ensures that maintenance is performed only when needed. This strategy not only prevents unforeseen downtime, but also optimizes maintenance schedules, increases equipment life, and increases the security of various operations. AI can be used to assess the state of all components of the oil complex - from offshore drilling rigs to oil refineries and pipelines.

Analysts at BCC Research predict that the market for AI technologies for the oil and gas industry will continue to develop rapidly. The CAGR (compound percentage CAGR) from 2023 to 2028 is expected to be 12.9%. As a result, by the end of the period under review, the market volume will reach $5.1 billion. Companies will continue to implement AI to improve competitiveness and operational efficiency, reduce operating costs, and accelerate decision-making.^[3]

2022: IT import substitution in the Russian oil and gas industry is estimated at 30%

Import substitution of information technologies in the Russian oil and gas industry is estimated at 30%. Such data on September 22, 2022 was cited by Alexander Smolensky, General Director of the Digital Industrial Platform (a joint venture of Zyfra Group of Companies and Gazprom Neft).

According to his forecasts, this share in the future may exceed 80%, but how soon this event will happen and whether it will come at all will depend on the actions of market participants, government agencies and external companies.

The share of domestic IT products in the oil and gas industry is about 30%

If the sanctions intensify, we will see that we simply have no other options - only domestic software... I think that literally in 3-5 years you can reach the vast majority of our technologies. The net figure of 100%, of course, is impossible, because there are many countries that are either already starting to enter the Russian market or enter it. These are Arab countries, Asia, Latin America, - said Smolensky in a conversation with TASS.

According to him, in 2023 there may be a sharp increase in the launch and implementation of Russian IT solutions in the fuel and energy sector. Some such products have previously entered the market. One of them is. "RN-GRID" This is a new generation Russian hydraulic fracturing simulator (frac) that allows you to describe as accurately as possible the complex geometry of a fracture that occurs in the rock during frac. For 2021-2022 Orenburgneft , 240 hydraulic fracturing designs were modeled, and the launch rate (the volume of oil supplied per unit time) from hydraulic fracturing operations was doubled on average.

Another domestic development in the field of software is the RN-KIM hydrodynamic simulator, which allows you to create "digital twins" of oil and gas fields. This software is also able to simulate all the most important processes occurring in the formation during oil and gas production.^[4]

2020

Sibur was the first in Russia to introduce a digital modeling system in petrochemical production

On November 5, 2020, Sibur announced that the company was the first in Russia to introduce a digital modeling system in petrochemical production. The pilot project was launched at a subsidiary - at Tomskneftekhim. Read more here.

Ministry of Energy: Introduction of IT in the oil industry will bring Russia 700 billion rubles a year

The introduction of information technology in the oil sector will bring the Russian economy more than 700 billion rubles a year. This was announced at the end of October 2020 by the Ministry of Energy of Russia following a meeting of the working group on digital transformation of the industry.

By the end of October, relevant ministries are preparing a number of measures to support digitalization projects in the industry, which are designed until 2035. Deputy Head of the Ministry of Energy Pavel Sorokin noted that such a transformation will "form an order for the entire industry," and will also bring a "significant multiplier effect" for the Russian economy. We are talking about 700 billion rubles a year - this is a decrease in exploration and production costs by 10-15%, the timing of commissioning facilities - by 40%, "he said.

The Ministry of Energy said that the introduction of IT in the oil industry will bring Russia 700 billion rubles a year

During a meeting of the working group on the digital transformation of the Russian oil and gas industry, Sorokin said that the systematization of tools is necessary. In this regard, according to him, it is necessary to choose up to 10 most priority areas in the field of robotization, as well as determine the demand expected from companies and form a request for industry.

The participants of the event considered priority projects of the industry in the field of artificial intelligence, possible measures of state support for projects that are key to the country's economy. An analysis of the work already completed was also carried out and further goals were outlined in terms of digitalization of the oil and gas industry.

In particular, it was decided to develop an "atlas" of measures of state support for technological projects, as well as to finalize the concept and roadmap for the robotization of the oil and gas industry, prepared under the guidance of the Gazprom Neft robotics competence center, together with other market participants. The concept is planned to be submitted to the Government of the Russian Federation in the first quarter of 2020. Preliminary analysis showed that in the oil and gas industry and related industries by 2030, demand may exceed more than 1 million robots, the Ministry of Energy said in a statement.^[5]

How COVID-19 accelerates oil digitalization in Russia

On May 6, 2020, it became known about various digitalization projects in the Russian oil industry. Companies have become faster to introduce information technology due to the COVID-19 coronavirus pandemic, which has dire consequences for the economy.

As the press service of Gazprom Neft told Interfax, in less than a month the company was able to realize the possibility of remote work of its office employees. By the beginning of May 2020, more than 30 thousand employees of the entire group of companies were connected to the remote access system. The corporate communication and telephony tools have also been adapted to the new format of work.

Gazprom Neft took less than a month to provide all employees of the office group with the opportunity to work remotely

In addition, digital transformation has affected production and management processes. Thus, at Gazprom Neft refineries, electronic contactless transfer systems for shift shifts were launched, automatic oil loading overpasses operate in digital mode to exclude contacts between fuel truck drivers and plant personnel. The demand for Gazprom Neft digital platforms for remote payment for fuel is also growing, the company said.

The Omsk oil refinery, which is owned by Gazprom Neft, is introducing a digital production control system that allows automatically using more than 4 thousand sensors to collect and process information about all parameters of the complex, track changes and prevent abnormal situations.

Another technology-related area of ​ ​ Gazprom Neft's work is unmanned vehicles. The company tested such trucks at the East Messoyakhskoye field (Yamalo-Nenets Autonomous Okrug) jointly with KamAZ, and also tested GAZelle Next self-driving electric vehicles at the Yuzhno-Priobskoye field in the Khanty-Mansi Autonomous Okrug. In the future, technology under the control of artificial intelligence can take over most logistics operations, it is planned to begin its use in the fields of the region in 2021.

Transneft told Interfax about the high degree of automation of technological processes in the field of oil and petroleum products transportation and the operation of trunk pipelines in conditions of anti-epidemiological restrictions. Also, by the beginning of May 2020, the project of launching a unified dispatch control system (ESDU) with a pipeline system is being completed, which will further reduce the risks of emergency situations and make it possible to more effectively manage the transportation of oil and petroleum products. The company changes the structure of control rooms and updates hardware and software platforms to increase the degree of automation of its processes.

Digitalization in the oil industry makes it possible to reduce the time and time for launching projects, construction and installation work, conduct operational analysis and calculation of optimal development scenarios

Digitalization is also taking place at TATNEFT. As part of it, the company, in particular, upgraded the data warehouse and updated the data center in order to significantly increase the performance of corporate information systems.

According to Denis Sugaipov from Gazprom Invest LLC, world leaders, through digitalization, increase the efficiency of projects both in terms of timing and budget: on average, deviations from the point of view of funds spent in the industry in world practice are 43% upward, and companies that use digitalization, this figure is in the region of 21%. In terms of timing, the standard deviation from the plan is 55%, and digital methods reduce it to 27%. That is, the effectiveness of the implementation of projects is more than doubled, he stressed.

Gazprom Neft expects that by 2030 the company will be able to halve the period for receiving the first oil from fields and accelerate the implementation of large production projects using digital technologies by 40^[6]

2019

Cybersecurity is a major digital investment focus for oil and gas producers

Cyber security became the main focus of digital investments oil gas and extractive companies. This follows from the seventh international report Accenture on digital technologies in the oil and gas industry (Accenture Upstream Oil and Gas Digital Trends Survey 2019), based on a survey of 255 industry professionals, including top managers, functional leaders and technical specialists. This was reported on February 14, 2020 in Accenture.

Among the areas of digital investment, respondents most often mentioned cybersecurity: 61% of respondents noted it, which is 5 times higher than in 2017 (12%). The report also noted that investment in this area has increased sharply due to the desire of oil companies to protect their assets and reputation. In addition, among all digital technologies, it was cybersecurity that was noted by the largest number of respondents (16% versus 9% in 2017) as having the maximum impact on business efficiency.

Despite the increased investment in cybersecurity, only 5% of respondents consider vulnerability to cyber attacks the greatest risk of underfunding in the field of digital technologies - this is only a third of the level of 2017 (18%). Perhaps this explains why only 35% of respondents plan to invest in information security over the next three to five years.

"As the work of oil companies is increasingly threatened, cyber resilience is becoming particularly important to stakeholders, consumers and government. Attack management is not only a matter of protecting the reputation, value of shares and the activities of companies, but also part of the responsibility for the security of the state. Extractive enterprises should continue to consciously invest in cybersecurity, as they often underestimate their vulnerability to attacks that are becoming more technically sophisticated, " noted' Rich Holsman, Managing Director, Head of Digital at Accenture Oil & Gas

Cloud technologies were named the second largest investment area (53% of respondents). Moreover, 15% named this block of technologies as having the greatest impact on business efficiency. Accenture's research suggests that oil and gas companies continue to commit significant funds to cloud-based solutions because they are the basis for their digital transformation processes and improved operational security.

The proportion of respondents who named artificial intelligence (AI) as the main driving force having the greatest impact on business performance more than doubled - 9% versus 4% in 2017.

When asked what digital technologies oil and gas companies plan to invest in over the next 3-5 years, the majority of respondents (51%) indicated AI machine learning and (30% in 2017). They are followed by/(big dataanalytics 50%), (internet of things 43%) and mobile/(wearable technology 38%).

Almost half (47%) of respondents cited the loss of competitive advantage as the biggest risk associated with a lack of investment in digital technology. And 42% of respondents called cost reduction the most significant business task that digital technologies can solve.

At the same time, the results of the study indicate that over the past few years, the level of investment of mining companies in digital technologies has practically not changed. The number of executives who said that their companies plan to increase investment in digital technologies in the next 3-5 years remained at the level of 2017 (72% versus 71% in 2017).

Data from the Accenture report suggests that oil and gas companies are struggling to scale digital initiatives. Only 9% of respondents noted that their department or division was able to scale at least half of the prototypes (proof of concept, POC) developed by them over the past two years. Only one in five respondents (20%) reported that they managed to scale more than 20% of their POCs past the piloting stage.

The study also notes that while mining companies need to scale digital technologies to benefit from their investment in technology in the form of added value, difficulties will continue.

In particular, a third (34%) of respondents called the insufficiently clear business strategy the most serious barrier to deriving returns from digital investments - this figure increased from 26% in 2017. Only one in seven respondents (15%) confirmed that digital investments brought in more than $50 million in added value. And only every twentieth (5%) noted that digital investments added more than $100 million to its mining business - 2 years ago there were 12% of such respondents.

"While extractive companies continue to increase their investment in digital technology, they are not transforming their investment into tangible benefits - moreover, their ability to benefit from investment is even declining. Extractive companies are faced with organizational difficulties: they find it difficult to scale technology, which prevents the transformation of the main business and the release of capital. Investment in digital technology, building the right operating model and digital capabilities are necessary for mining companies to become flexible and increase their value. This will require not only additional management support, but a much wider ecosystem of partnerships, " noted' Rich Holsman, Managing Director, Head of Digital at Accenture Oil & Gas

"Two promising areas of investment in Russian oil and gas production companies can be distinguished: digital deposits and digital capital construction. The first of them has been talked about for many years, and here the main question is how new technologies can radically change and increase the efficiency of the digital field. The second direction is a fundamentally different topic on the agenda - the digitalization of capital construction. There is an active development of technologies that help to remotely control complex construction facilities, their status, the real operational situation at the production site, which will lead to a decrease in costs and an increase in the level of operational control, " noted Tatiana Berstein, Managing Director of Accenture's Natural Resources Department in Russia

The 2019 Digital Survey of Oil and Gas Trends by Accenture Upstream was organized by PennEnergy Research in conjunction with the Oil & Gas Journal between March and May 2019. The survey was attended by 255 respondents from 47 countries, including senior managers, vice presidents, business managers, middle managers, information technology specialists, engineers and project managers from various national oil companies, international oil companies, independent oil companies and oilfield service companies.

Accenture Highlights 5 Key Trends in Oil and Gas's Digital Transformation

The company Accenture conducted an international survey power of the Accenture Technology Vision for Energy 2019 sector#^[7] and surveyed top executives and IT executives of 168 oil and gas companies from,, America and Europe Asia Australia.

The vast majority of respondents (94%) said that over the past three years, the pace of technological innovation in their organizations has accelerated significantly. In particular, 79% of managers from mining and 75% from oil and gas processing companies note that social, mobile, analytical and cloud technologies (SMAC) are becoming the foundation of their technological development.

In the study, Accenture highlighted five trends that will have the strongest impact on the oilgas industry in the coming years. Among them are the use of DARQ technologies, technological identity, strengthening the professional skills of employees with new technological solutions, risk management cyber security and readiness to work in an "instant market."

The first trend is the use of technologies of the DARQ group, which includes a distributed registry (D - Distributed ledger technologies), artificial intelligence (A - Artificial intelligence), extended reality (R - Extended reality), quantum computing (Q - Quantum). In the next three years, according to 42% of respondents in mining and 30% in processing companies, organizations will be most affected by artificial intelligence.

Quantum computing follows. The breakthrough nature of this technology was noted by 23% of top managers of mining and 22% of processing companies. The third place in extended reality: 15% of mining managers and 28% of top managers of processing companies believe in this technology. The fourth place in the technology of the distributed register, 19% of the heads of mining companies and 17% of the heads of processing holdings gave their vote.

At the same time, 80% of the tops of mining companies and 76% of processing enterprises agree that the most changes in business will be brought by the integrated use of DARQ. 80% of managers from mining companies and 90% from processing companies are already experimenting with one or more DARQ technologies.

Trend number two - the use of technologies to clarify the unique needs of each customer, search for new requests from consumers and new market opportunities. This approach helps not only to better understand the new generation of customers, but also to build individual relationships with them, taking into account all previous experience of interaction. This is confirmed by the study figures: 83% of respondents from mining companies and 76% from processing companies believe that technology will create new ways to find and meet the needs of customers who have not previously been identified.

Accenture experts called the intensification of employee skills using technological tools the third trend. The researchers noted the need to apply the "Man +" concept in the oil and gas industry, in which each worker will use a combination of their own skills and knowledge together with an ever-changing bundle of technologies, from artificial intelligence to training platforms.

For the bundle to work, oil and gas companies will have to pay great attention to continuous training of personnel. 76% of top managers from mining and 63% from processing companies are confident that employees have a higher level of "digital maturity" than the organizations in which they work, and expect an active digital transformation from the employer.

The fourth trend is the strengthening of cyber defense. By building ecosystems around them, oil and gas companies must strengthen cyberspace security in a way that protects themselves and all partners. 91% of executives from mining companies and 85% from processing companies agree that only companies that have rethought approaches to information security can be really sustainable.

As the fifth trend, analysts called the readiness to work with the "instant market." Direct digital access to customers, combined with sophisticated backend technologies, allows you to reorient your business and bring new products and services to market faster than ever. Thanks to technology, companies can not just create customer-specific offerings, but meet their needs at every point in time.

85% of mining executives and 78% of processors believe that providing personalized products and services in real time is a competitive advantage. 67% of those surveyed in mining and 47% in processing companies believe that 5G will have a significant impact on business in the next three years. And the top managers of 84% of mining and 76% of processing companies have no doubt that the technology will revolutionize the industry by proposing new ways to provide products and services (for example, unmanned delivery technologies).

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