New technology adoption vital for thriving oil industry

Oil and gas companies should be at the forefront of new technology adoption, according to Tarek Ghoul, Cisco North Gulf country manager.

He said the transformation to internet protocol-based (IP) networks, especially in communications, has become vital because of the possibility of sudden change within the industry.

"Technology is an enabler and can provide fundamental improvements for organisations operating in the oil and gas sector," added Ghoul.

IP networks carry voice, video and data. This has the advantage of ensuring the company reliable availability of information and applications. Ghoul thinks adapting the communications infrastructure to IP technology will ultimately save costs and deliver the manageability needed to improve business activities.

Eyad Alqadi, Cisco's vertical sales manager, added that the growth of the internet has established IP as the de-facto standard, and all network and application vendors have had to move to this or face obsolescence. He said, for the oil and gas industry, IP networking will allow interoperability, drive data sharing and help realise the concept of the digital oilfield.

The Digital Oilfield extends from the use of 4-D seismic imaging, through to ‘data-to-desktop' initiatives that take production data through to marketers and traders. This means that it can potentially impact the entire oil and gas value chain, with all the technical, process and human impacts that go with it.

Alqadi added that the increase in oil demand has forced companies to re-engage aggressively in reserves replacement, whether through new exploration or in secondary and tertiary recovery from mature fields. The higher oil price that is seen today has driven new capital expenditure, as well as a desire to drive efficiency and cost reduction.

"New technology is seen as a key element in delivering these cost savings," he said. "When a relatively small investment in technology can drive a dramatic return of investment in terms of increased production or extended life of an asset, this is clearly of interest to any oil company.

"While enterprise management systems can survive the odd software bug or virus attack, any failure in the process control network, from the overheating of a pump to the breaking of a valve, can have catastrophic effects and even claim lives."

Alqadi said the trend for oil and gas companies to adopt new technologies is expected to continue for the next ten years. This is particularly true of the Middle East thanks to the aggressive plans of national oil companies.