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Advanced Technologies Enable Linear Supply Chains to Evolve Into Interconnected Digital Supply Networks
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Determining which technologies to develop and communicating innovation’s value to include practices beyond Research and Development (R&D) is required to sustain a culture of continuous innovation and meet future demand in the upstream supply chain. However, the industry is still behind the curve in stressing this critical area. Upstream oil and gas is increasingly focused on cutting costs and improving recovery rates through radical innovation and digital transformation. Frost & Sullivan’s Innovation in Oil and Gas Supply Chain Management study provides an overview of emerging technology areas, industry shifts, company profiles, and ensuing business model transformations surrounding drilling activities, with a specific focus on onshore operations. It offers clients a holistic, directional analysis of the drilling, completion, production, and water management supply chain ecosystem till 2025. All emerging technologies, including AI and advanced analytics, advanced computing, enhanced communication, IoT, Blockchain, and additive manufacturing have disrupted many industries and verticals of industries. Supply chains too will be changed, leading to smarter supply chains that can result in faster information transfer and seamless parts movement. Predictive ordering, replenishment, transportation, and smarter inventory management have already been introduced with the help of start-ups. The study will cover 6 main technologies across each supply chain section. Additionally, each technology is further covered deeply in the study and its features and outcomes are explained separately. Apart from the regular impact that the technology creates and the outcomes attained by operators, technology providers are also listed. Technology providers of key technologies are discussed and the solutions provided by them are explained briefly. The key technologies are separated by individual processes—drilling, completion, production, and water management. Each process is further analyzed based on what technology is used and how it is used. Technologies used in each process are first listed and individual outcomes are analyzed separately. Then, individual operators’ use of upcoming technologies and the transformation obtained are profiled. Each operator and OEM’s adoption of the above technologies and their benefits attained by them are discussed in detail.Additionally, future shifts and business models are evaluated and how operators are equipped them for the changing technology development is also studied. The digital transformation happening in the oil and gas industry and the opportunity it provides for the businesses are discussed. It also discusses the maturity model of how much and where the technology is adopted. The study discuss the digital value chain and critical aspects of the digital transformation of the upstream oil and gas supply chain.
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