JAGGAER, the global leader in Autonomous Commerce, has underscored the importance of embracing Industry 4.0 and utilising AI, Machine Learning, and predictive analytics as a way of reducing risk and cost savings in the oil and gas supply chain, during the opening day of the MENA Downstream Digital Transformation Conference.
The two-day conference, sponsored by JAGGAER, will address the transformation of the industry as a result of various factors, including COVID-19, fluctuating oil prices, and the push for Net Zero agenda by 2030, all of which have led to the increased digital transformation and technology integration within the sector.
Hany Mosbeh, Senior Vice President, Middle East and Africa, JAGGAER, said: “The oil and gas industry is a complex and ever-changing environment. It is an industry that depends on an extensive supply chain, which, as we’ve seen in recent years, is highly susceptible to changes due to various macroeconomic factors. Production and operations are typically high-cost, high-risk and capital-intensive.
“With the right technology in place, organisations can have a more agile and resilient supply chain and remain competitive. Our source-to-pay solution provides end-to-end automation of the entire procurement lifecycle, providing transparency, improved supplier relations and potentially millions in savings for organisations.
“By leveraging emerging technologies such as AI, advanced and predictive analytics, machine learning and embedded intelligence, we’re freeing customers from the mundane, providing deeper data for more strategic decision making and predicting and mitigating risk.”
According to data from leading data services company IDC, worldwide spending on digital transformation will reach $2.3 trillion this year, denoting 50% of all technology spending. Many oil and gas companies are leading the investment charge and adopting various technologies to enhance operational efficiencies, cut costs and optimise manual processes.
It is expected that the implementation of these new technologies could save the industry over US$200 billion, according to Accenture. At the same time, the International Energy Agency has predicted that the widespread use of existing digital technologies in the oil and gas sector could decrease production costs by 10% to 20%.
However, it’s not just increased technology spending on digital procurement, predictive maintenance, training, real-time operations monitoring, and risk omittance that will help the industry realise cost savings. A range of investments in technology across the entire oil and gas ecosystem are supporting this.
Examples include predictive maintenance for equipment and digital process optimisations, seismic imaging and 4D modelling support exploration, while sensor data helps to determine the correct drilling methods.
“Despite the many advantages new technology offers, the industry still faces challenges relating to the cross border and decentralised nature the oil and gas business creates. Utilising new procurement technologies can eliminate many of the issues teams face, nullify these challenges, and ultimately create cost savings,” said Mosbeh.
“I would urge all businesses to adopt Industry 4.0 goals and initiate the first steps to enable them to prosper in this new and exciting digital world,” he concluded.
The MENA Downstream Digital Transformation Conference, sponsored by JAGGAER, takes place from Monday, 6 to Tuesday, 7 March, at the Sofitel Abu Dhabi Corniche.
With over five million global suppliers on its Enterprise Commerce Network and US$500 billion worth of goods flowing through its network, JAGGAER provides enterprise buyers access to a myriad of sources of supply that are tightly aligned with their specific needs.