CISCO STUDY

Adoption of Internet of Everything by Oil and Gas Industry Could Fuel GDP Increase of Up to 0.8 Percent, or $816 Billion, Over 10 Years - Seite 2

Digital Transformation: $538 Million Annual Profit Increase for a $50 Billion O&G Company
Cisco Consulting Services estimates that this IoE-driven value will come from improvements in asset utilization, process or supply chain efficiency, employee productivity, CapEx savings, and market innovations. For a midsize oil and gas company with $50 billion in annual revenue, IoE can generate a $538 million annual profit increase and an 11% bottom-line (EBIT) improvement. 72% of these benefits are derived from cost reduction, while the remaining 28% are from increased revenues.

Key Findings
Cisco's survey respondents named "operational efficiency of existing projects or reserves" and "maintenance of assets and infrastructure" as their top two areas of increased investment over the next 24 months. Leaders must improve operational efficiencies and asset life to stay competitive without cutting costs through layoffs and project cancellations.

While survey respondents understand that connecting "things" is a necessity, true value lies in the intelligence of extracted and analyzed data from the "things". This intelligence allows oil and gas firms to drive business and operational transformation.

• 48% of respondents named "data" as the area of IoE they need to improve most to make the most effective use of connected technologies (IoE).

Effective data management and analytics can generate operational and business benefits: Offshore oil platforms generate between 1TB and 2TB of time-sensitive data per day.¹ Slow satellite communication is the most common link to transmit this data, requiring over 12 days to move one day's worth of oil-platform data to a central repository such as the cloud. An effective data strategy involves being able to automatically detect whether the data needs to be sent to the cloud for analysis, or whether it should be analyzed at the "edge" of the network, where the data is collected (e.g., from sensors on drilling equipment). Edge analytics allow O&G companies to gain greater real-time insight, thus providing specific business and operational advantages.