Digital Transformation in O&G Delivering Increased Efficiencies
From the latest API report (May-2019)
According to the American Petroleum Institute’s (API) latest monthly statistical report. Texas crude oil output exceeded 5 MMbpd last month for the first time. U.S. crude oil production reached a new all-time high of 12.2 million barrels per day (MMbpd) in May.
“These milestones were achieved despite less drilling activity, which is a testament to productivity but also pipelines infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.
The API also reports that the U.S. petroleum exports at 8.1 MMbpd and a U.S. crude oil inventory increase of 10.5 percent over May 2018
“The historic milestones in U.S. oil production this quarter underscore the necessity of pipeline infrastructure to continued U.S. energy leadership,” API Chief Economist Dean Foreman said in an organization statement.
“With the surge expected to continue, our focus must now shift toward ensuring the necessary infrastructure and logistics are in place to support growth in providing energy to consumers, as well as exports,” he added.
“If current predictions by the U.S. Energy Information Administration and others prove correct, the U.S. will likely push up against the lower bound of existing crude oil export capacity by the end of this year, which creates urgency around building new infrastructure to ensure we don’t miss out on this rare opportunity,” Foreman continued.
The API describes itself as the only national trade association representing all facets of the natural gas and oil industry. The API has more than 600 members, including large integrated companies, exploration and production, refining, marketing, pipeline, marine businesses and service, and supply firms.
To no surprise, the API reports support the pipeline agenda, that said, at the root of all of this is the quest for overall greater efficiencies. Moving the oil out of the asset, state, or country is very important to help convert oil inventory into a sale. However, the foundation of all efficiency gains is improved communications which in-turns enable, mobility, IIOT, AI, Edge computing, and a flurry of other new technologies and applications to deliver the digital transformation.