Oil and Gas Innovation Competitive Landscape

Part
01
of four
Part
01

BP Innovation Competitive Landscape

We were able to locate the requested information concerning BP and its recent technological innovations. The entire project is here.

Methodology

We began our inquiry with BP’s website. We were able to acquire much of the information concerning the company from there. We were also able to obtain their latest annual report that provided details on their latest technological innovations.

BP Innovation Competitive Landscape


Annual Revenue

According to BP, as of December 31, 2018, they have $299 billion in revenue.

Company Description

Founded in 1908, BP is a multinational oil and gas company that operates on both the land and offshore. The company operates in 78 countries and has 73,000 personnel. The company’s strategy relies on a balanced portfolio of oil and gas, a competitive downstream with a range of low carbon activities, and flexibility.

Other Details

BP invested $5 million in FreeWire (a mobile rapid charging system) and $20 million in StoreDot (an ultra-fast charging technology). BP hopes to bring both of their products to the electric vehicle market. With BP’s acquisition of Chargemaster, the company has more than 6500 charging locations across the UK and projects that there will be 12 million electric vehicles on UK roads by 2040.

Recent Innovations

The company has introduced the following innovations into its operations: Wolfspar, robot inspectors, APEX, and the Plant Operations Advisor (POA). Wolfspar is an ultra-low frequency seismic imaging system that was initially created to solve the subsalt imaging layer challenge present in the Gulf of Mexico. BP has deployed robot inspectors alongside human workers at their Cherry Point refinery that use ultrasonic technology to reduce a task that required a planned shutdown of 23 work hours to one hour working alongside human engineers. APEX is a surveillance, simulation, and optimization toolkit that collects real-time data on every well in BP’s network; APEX has reduced full-field optimizations that took hours to minutes. Similar to APEX, POA is a cloud-based surveillance tool that daily collects and processes 140 million data points from ~1200 pieces of process equipment.

Points of Differentiation or Competitive Advantage

Wolfspar has allowed BP to collect ~1000 km of data over a period of 143 hours in the Gulf of Mexico. Combined with the development of an innovative land-based seismic recording system, the company has created a "nimble node" system that is the lightest, smallest, and lowest-cost system in the world. BP expects that this project will change the future of seismic data acquisition. BP’s robot inspectors have managed to transform an inspection process that required a planned maintenance shutdown of 23 hours into a process that collects the same amount of information in one hour. APEX has managed to recreate every element of BP’s well network in near real-time and can run simulations in seconds; APEX has reduced full-field optimizations into matters of minutes. And POA's extensive monitoring means that BP engineers can pinpoint anomalies and their underlying causes through manual diagnostics in minutes as opposed to hours.

Innovations’ Contribution to Company Success

BP's IIoT innovations have led to significant time savings, reducing necessary man-hours to solve problems. BP's APEX, POA, and robotics innovations resulted in measurable improvements to tasks that normally required large teams and lost production hours through planned shutdowns and stoppages for maintenance and diagnostics. Operations that were matters of hours are now matters of minutes. Wolfspar has decreased uncertainty about where to drill future wells, resulting in less inefficiency in future drilling. And BP expects this to improve over time as they continue to improve the technology.

Conclusion

We were able to locate the requested information on BP and its recent innovations. Wolfspar is an ultra-low frequency seismic imaging system being developed by BP into a new “nimble node” technology. BP’s robot inspectors utilize ultrasonic technology to perform a task that once required 23 hours of planned maintenance in one hour. APEX is a surveillance, simulation, and optimization toolkit that recreates every element of BP’s well network in near real-time. And POA is a cloud-based surveillance tool that daily collects and processes 140 million data points from ~1200 pieces of process equipment.
Part
02
of four
Part
02

Chevron Innovation Competitive Landscape

In this study, we found that the annual revenue of Chevron in 2018 is $158.9 billion. It has recent technological innovations in blockchain, artificial intelligence (AI), industrial internet of things (IIoT), and quantum computing. Please refer to our attached spreadsheet for this study. Furthermore, below is a detailed explanation of our findings.

COMPETITIVE LANDSCAPE OF CHEVRON INNOVATION

ANNUAL REVENUE
In 2018, Chevron had sales and other operating revenues amounting to $158.9 billion.
DESCRIPTION
Chevron Corporation (or Chevron), which was incorporated on January 27, 1926, has two major business segments: upstream and downstream. The company owns and operates a network of crude oil, natural gas and product pipelines, and other infrastructure assets in the U.S. It also has a marine fleet in both the U.S. and foreign-flagged vessels.
OTHER DETAILS
Chevron agreed with Anadarko Petroleum Corporation to acquire all of its outstanding shares in stock and cash transaction amounting to $33 billion (or $65 per share) with total enterprise value amounting to $50 billion.
RECENT INNOVATIONS
Blockchain: Total and Chevron, and Indian refiner Reliance Industries joined the blockchain-based platform, Vakt that is London-based to achieve safer, faster, and cheaper logistical operations.
AI: Chevron uses AI to determine new locations of well and simulation candidates in California. Predictive models analyze the performance of rotating equipment to find failures to avoid unplanned shutdowns and lower repair expenses.
IIoT: Chevron’s IIoT Center of Excellence reported that its partnership together with Microsoft. This partnership aims to use Azure cloud platform and analytics by attaching wireless sensors to heat exchangers to collect and send real-time data from the heat exchanger to the cloud that will help in major savings for the company. Chevron will pilot wireless sensors on a large amount of oil refinery equipment in 2019 using IIoT.
Quantum Computing: Chevron is working towards quantum computing in the next years.
DIFFERENTIATION OR COMPETITIVE ADVANTAGE
Blockchain: Chevron, Reliance, and Total are a part of the world’s top 10 largest oil and gas companies by market capitalization as investors.
AI: With the help of AI, Chevron is drilling in better locations and is experiencing a production rise of 30% as compared to conventional methods. Through AI, the company is doing 700 fewer inspections on pressure valves every year.
IIoT: Chevron deployed 5,000 heat exchangers in nearly 100 countries for health monitoring in different equipment pieces that will bring relevant gains for the company.
Quantum Computing: Chevron is still working regarding quantum computing in the next years.
IMPACT OF INNOVATIONS TO THE COMPANY’S SUCCESS
Chevron’s AI and UAV efforts give the company a competitive advantage against other smaller companies because the major oil company spreads the costs through its operations, which results to lower costs of AI research per barrel. Furthermore, the company’s unscheduled downtime for refineries and other projects indicates the success of AI/UAV. This leads to higher capital returns when controlling for project cost and crude prices.
Part
03
of four
Part
03

Shell Innovation Competitive Landscape

In 2018, Shell Global Solutions recorded an annual revenue of $388.88 million. The company has heavily invested in technological innovations that include blockchain technologies, artificial intelligence (AI), Internet of Things (IoT), augmented reality and virtual reality as well as connected worker solutions. The innovations have played a critical role in enabling the company to become more effective, enhance communication among employees, minimize uncertainties and identify safety hazards more rapidly so that the company can respond to the hazards on time. We have summarized the technological innovations of the company as well as relevant details of the company On rows 5-7, 9-11, and 13 of column F on the attached spreadsheet.
Part
04
of four
Part
04

Total Innovation Competitive Landscape

After examining numerous credible sources, we have identified the recent examples of Total's technological innovations and how they are driving success for the company. Our findings on this topic, as well as additional information, are available in rows 5 through eleven of column G on the attached spreadsheet.

OVERVIEW OF FINDINGS

Total, an oil and gas business, was first established in the year 1924 by the French Petroleum Company. Today, the company serves as one of the top players in its respective industry. Regarding recent innovations, last year (April 2018), Total and Google Cloud collaborated to produce solutions concerning subsurface data analysis for the production and exploration of gas and oil. The solutions produced with Google Cloud, which can be applied with the help of artificial intelligence, can help to evaluate subsurface images among other feats. Another recent innovation includes the development of the Transverse Anomaly Detection Infrastructure (TADI) by Total. This creation will assist Total to adequately supervise risks transpiring at the company's industrial facilities around the world and ultimately prevent travesties.

TADI will also help improve Total's productivity and performance as it will offer advanced fault detection. Also in 2018, Total collaborated with the French National Research Center to develop a small sensor called the Airborne Ultra-Light Spectrometer for Environmental Application (AUSEA). The product is highly accurate and reliable while being proficient in evaluating emissions in real time. The AUSEA helps support Total's commitment to efficiently handle its greenhouse gas emissions.

In the year 2018, Total generated an estimated $209.36 billion in revenue. That same year, the company invested approximately $986 million in research and development. Worldwide, Total operates at least 18 various research and development facilities.

Sources
Sources

From Part 04
Quotes
  • "The origins of the Total Group go back to the creation of the Compagnie française des pétroles (CFP), or the "French Petroleum Company"."
  • "Active in more than 130 countries, our 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many as possible."
Quotes
  • "Total and Google Cloud have signed an agreement to jointly develop artificial intelligence (A.I.) solutions applied to subsurface data analysis for oil and gas exploration and production."
  • "The agreement focuses on the development of A.I. programs that will make it possible to interpret subsurface images, notably from seismic studies (using Computer Vision technology) and automate the analysis of technical documents (using Natural Language Processing technology). These programs will allow Total’s geologists, geophysicists, reservoir and geo-information engineers to explore and assess oil & gas fields faster and more effectively."
  • "Total teams are exploring multiple machine learning and deep learning applications such as production profile forecasting, automated analysis of satellite images or analysis of rock sample images."
Quotes
  • "To this end, we are turning to digital prevention. Developed to optimize the way we manage the risks associated with any gas leak at one of our industrial facilities, TADI (Transverse Anomaly Detection Infrastructure) constitutes an innovative approach"
  • "The TADI was conceived jointly with teams from the PERL as part of the “Major Accident Prevention” R&D project. The resulting permanent R&D infrastructure is the only one of its kind in the world, both by virtue of its location in an industrial environment subject to EU SEVESO 3 regulations on major accident hazards, and because it is currently the only facility able to reproduce such a wide range of gas leak flow rates, from 0.5 g/s to 300 g/s."
Quotes
  • "Energy majors Total and Eni have joined the latest phase of BTL Group’s project aimed at facilitating gas trading reconciliation through to settlement and delivery of trades using blockchain."
  • "BTL is the owner of proprietary blockchain platform Interbit, which is capable of operating and interconnecting thousands of blockchains per server, in a secure and scalable manner."
  • "the initiative with BTL could help Total to reduce the risks of human errors and increase the speed in the reconciliation process of transactions along with its industry counterparts, Chauvain added"
Quotes
  • "To measure concentrations of carbon dioxide and methane, the primary gases driving climate change, we have partnered with the French National Research Center (CNRS) to develop the Airborne Ultra-Light Spectrometer for Environmental Application, or AUSEA."
  • "This innovative device will allow us to monitor facilities proactively, to minimize greenhouse gases emitted into the air around our various oil and gas sites."
  • "The measurements recorded every second and sent back in real time over a 500-meter range tested the device’s early detection ability. Besides looking at its sensitivity, the tests also vetted such practical points as how easy it was to use, its reliability and its robustness — all important criteria for site operators."
  • "AUSEA will help us monitor our performance much more closely, ramping up from occasional onsite measurement campaigns now to several rounds of monitoring each day. It is vital that we be this transparent about our environmental performance with neighboring communities. "