Crucial Upstream Technologies and Operating Frameworks

Behind each forward step in the oil and gas industry is technological advancement, as Fernando Cruz, Business Director Mexico, Dolphin Drilling said: “The IEA calculated that US$3 billion is to be invested in exploration before the end of the decade, and this is likely to increase further in light of current oil prices. As Elon Musk, amongst others, has noted, continued innovation and exploration in this industry are crucial to meeting the world’s energy demands. Without oil and gas, everything else collapses.”

Javier Robalino, MCA Sales & Marketing Manager, Schlumberger, concurred. “The energy industry continues to depend heavily on oil and gas to meet demand. Moreover, in Mexico and other parts of the world, we are still dependent on coal, so if we are still using coal the idea that we will suddenly stop using oil and gas soon is out of the question,” he said, adding that Mexico’s industry therefore “has a pivotal role in developing the future of energy. We are bombarded daily by news of the latest technological innovations What is not talked about, however, is technological innovation in oil and gas. It is not the case that our industry is not advancing technologically, quite the contrary.” Robalino used AI and IoT as examples that the oil and gas industry uses. Nevertheless, there are some risks associated with adopting technological developments, though there is also much to be gained. “However, when the stakes are this high, operators want to use the most advanced technology out there to minimize risk,” he concluded.

Cloud computing and automation are two areas that have been incorporated wholesale by the industry, Robalino noted, not least during the COVID-19 pandemic to keep operations running. “Technology has been fully embraced by the oil and gas industry, not just in the development phase but increasingly in exploration projects, because ultimately, that is where the future lies,” explained Robalino. Ulises Oliva, Latin America Geozone Business Manager, Weatherford, concurred: “Our technology, infrastructure and personnel are constantly evolving. Our challenge is to make use of non-renewable resources in the most efficient manner possible. The innovations you hear about in other sectors are also part of everyday operations in oil and gas, especially with new projects.”

New trends and innovations are changing the exploration stage. “It all goes hand in hand with how we approach new challenges. Technology allows us to gather more information and adapt our processes to make the most out of the resources available with the least effect on the environment possible. Our geologists have a much better idea nowadays of which prospects are viable before we commit to drilling. Implementing new tools and the latest tech at each start, from exploration and evaluation to development and production makes everything safer and more efficient. Automated systems, in particular, have made the industry much safer for our personnel and minimize damage caused to the environment,” explained Oliva.

“Regarding the energy transition, it all boils down to reducing emissions. Exploratory drilling, accounts for around 20 percent of all of the industry’s emissions. One way to reduce emissions in this initial phase is drilling more quickly, thereby limiting the amount of diesel used by our machines,” said Robalino. He also pointed to seismic studies, which have been improved through modern technology and therefore speed up operations. “This is one of the main services Schlumberger offers nowadays, since making better quality images available before an operator starts drilling allows them to reduce the risk,” he added. While 4D images are by no means a guarantee that oil will be struck, they support operators much better than before. “The same software we use for CAPTCHAs to assess images is employed in oil and gas. Our computers are smarter than ever before. By increasing automation, we make drilling smarting and can make the adjustments necessary to reduce risks, which in turn, reduces emissions. This brings lots of value to the exploration phase when gathering information is key,” Robalino said.

Another innovation Robalino pointed out is the prospect of switching diesel-powered generators out for hydrogen engines. Cruz also mentioned the processes of carbon capture, management and storage, and how oil and gas companies are financing new technologies to this end. 

Operators and even service companies are investing more and more of their profits into R&D, even for renewables. “When we invest in solar power, for example, it is not simply a question of investing in photovoltaic solar cells, but administering the data obtained from these cells to see how you can produce the most energy with adaptations and different orientations. We call this big data, and as we learn to manage such data more efficiently, we can apply the same principle to oil and gas where we manage thousands of gigabytes of data daily,” said Robalino. The software created to deal with this issue combines the recommendations made by a wide range of experts across a diverse set of projects. “Therefore, techniques developed in other sectors of the energy industry can be applied to streamline and add value to oil and gas processes too,” he stated.