The main technological drivers that have to date been instrumental in lifting production for the world’s largest oil and gas producer, the US, are in the shale sector. Key advances include multiple and longer laterals, closer spaced, more hydraulic fracture stages, increased proppant injection volumes, automation and robotics have lifted well estimated ultimate recoveries (EURs). Adoption of multilateral technology has been a step change in unconventional reservoir development, combining the well construction capabilities of multilateral drilling with multistage hydraulic fracturing and commingled production.
Development
programs in shale plays have gained tremendous efficiencies and cost savings by
progressing from a single pad with a single horizontal well to a single pad
with multiple horizontal wells, and operators have achieved additional
efficiencies and savings by moving on more recently to single-pad/multiple-well
multilateral programs. For
example, in the Permian Basin, the average EUR is now over 1.5Mboe for new
wells, and breakeven costs are as low as US$29/bbl.
In 2019, the Argentine state energy company drilled the
world’s longest horizontal oil well lateral, at 3,890m, in the Vaca Muerta
shale. With longer lateral drilling technology, the idea is to boost
productivity from the play, helping to increase production while keeping down
costs. This is key for eventually competing in export markets with output from
US plays like the Permian, where the costs are some 30% less.

Greater cost reductions are expected with the
increased use of automation, as well as extending the capabilities of current
drilling and completion technologies.
This will be supported by efficient well-field and supply-chain
management systems that lower labour and downtime. To achieve this, incremental
savings are being identified across the entire process chain from the analysis
of “big data”. As an example,
innovations in instrument calibrations of flow-metering can now be realised
without the added costs of production shutdowns during testing.
Digital – Fundamental Part of Business
‘Digital’
is already a fundamental part of the business for oil and gas companies. Its
estimated approximately 97% of upstream and 91% of downstream companies report
that emerging technologies have sped up the pace of innovation in their
organisations over the past three years.
The biggest oil and gas companies are increasingly
using robotics, machine learning, data analysis, automation and artificial
intelligence. More companies are
collaborating with oilfield services providers with the intention of applying
digitally transforming operations.

The
industry’s first three-party collaboration comes from three of the biggest
companies in their respective sectors - oil and gas supermajor
Equinor teamed up with the world’s biggest oilfield services firm,
Schlumberger,
and
with tech giant Microsoft to accelerate the creation of innovative Petro
technical and digital technologies. In
2021 under the partnership, the companies will jointly work to deploy
Schlumberger’s DELFI cognitive E&P environment. This will help companies to process,
visualize, interpret, de-risk and obtain insights from many data sources.
Microsoft,
as well as many other tech giants including Amazon, Google, and ABB Group, is
already selling digital solutions to the biggest oil and gas companies in the
world. Chevron and Exxon have teamed up with Big Tech to unlock
opportunities and efficiencies in their key growth priority, the Permian basin.
DARQ
Technologies
Distributed
ledger technology, AI, extended reality, and quantum computing -
or DARQ as these four technologies have been dubbed - have the
potential to transform the energy industry. A total 76% of upstream firms
and 80% of downstream companies agree that the combination of all four
technologies will bring extensive changes to their business, higher than the
global average of 69%.
Unsurprisingly,
AI is the top cited technology of these four as the one capable of creating the
greatest impact on energy firms over the next three years. The next challenge is to develop the next
generation of technologies to become really differentiated and stay ahead of
the competition.
Automation/Robotics
The
growing labour shortage is an issue for the manual processes of the
industry. The industry’s solution is to
automate processes. For example, automating aspects of drilling operations,
such as pipe handling and pressure drilling. Another example of automation is
the use of remotely operated vehicles (ROVs), which are essentially underwater
drones. ROVs are used by offshore oil and gas rigs mainly for deep-water
inspection and exploration and maintenance tasks underwater.
The
oil and gas industry is also experimenting with the use of robotics in the
production phase. The cost of automation and robotics is far cheaper than the
damage that disasters bring to the business.
As
an example, in the North Sea, where conditions can be life-threatening, the
Oseberg H oil platform is the world’s first fully automated oil and gas
platform. This platform is setting a safety precedent with its innovative
design. The benefits of operating unmanned oil structures are
substantial, abundant, and quickly catching on. At the rate which technology
continues to advance, unmanned oil rigs will take a giant leap.

IIoT
Technologies
Finally,
there is a higher adoption of Industrial Internet of Things (IIoT)
trends. GPS devices and RFID are some examples of IIoT devices
that boost operational efficiency, reduce cost, and lower risk. GPS trackers
can help with the downstream end of the industry by optimising supply chain
routes and reducing delay times.
Sensors
like RFID, on the other hand, are used in asset management by tracking the
movement and location of products. IIoT sensors are also used in pipelines and
machines to detect leakages, corrosion, and other forms of damages that
compromise worker and environmental safety. These sensors can also measure oil
pressure, as well as composition, to optimise the flow of oil and reduce the
use of expensive equipment.
Now
and well into the future the oil and gas industry will benefit from
technologies like AI, robotics, and IIoT. This is because they can pave the way
for greater efficiency, profits and cost savings, environmental protection, safety
and security.