Oil Gas GineersNow Dec2019 fuel chemical drilling exploration offshore onshore petroleum petrochemical refinery upstream downstream energy oilrig

D E C E M B E R 2 0 1 9

E D I T O R ‘ S N O T E

For the past 12 months,

GineersNow editorial

team were able to

published thought

provoking articles pertaining to

the Oil & Gas industry.

From oil rig automation robots

to the most difficult drilling

projects, we have written

articles that everyone enjoyed

reading.

On behalf of the GineersNow

news team, GineersNow TV

crew, GineersNow events

management and GineersNow

digital, we would like to thank

you for making us the number

one online platform for

engineering community,

industrial companies and

technology enthusiast in

Asia-Pacific.

Here are the best stories

that went viral in the past 12

months.

January

2019 Energy, Chemicals, Oil

and Gas Forecast

Despite the setbacks faced by

the industry, there is still room

for expectations this coming

2019. It is inevitable that the

industry will eventually come

back to its former glory, thus,

all should watch out for

possible trends that would

come forth once the oil and

gas industry recovers.

February

Oil and Gas’ Most Effective

4

The Best of 2019 Oil & Gas

Digital Marketing Strategy

In this specific case study, I

have listed the top 30 largest

oil and gas companies in the

world. What language,

keywords and phrases do they

use on their websites, blogs,

socials and press releases.

In my honest opinion, if you

understand the language of

the oil & gas industry, then you

can create an SEO-friendly &

compelling inbound marketing

content.

March

The Impact of Blockchain in

the Oil and Gas Industry

The blockchain technology

can help improve workflow

management, reduce

operational losses, enhance

operational performance and

service delivery. It will also

have an impact on the supply

chain management for better

management of the flow of

goods and services.

April

Cyber Attacks on Oil & Gas

Facilities

Despite this, a university

research study found that

68 percent of oil and gas

company respondents have

experienced security attacks

and that they believe that

other attacks may have been

gone unrecorded. Meanwhile,

another study predicted that

cyber-attacks to oil and gas

companies may result to losses

amounting to $1.87 billion

in 2018.

May

We Need More Women in the

Energy Industry

This gender imbalance in the

oil and gas industry is both

alarming and highly nonprofitable.

Most refiners did

not realize this until the crude

price crash in the market some

years ago. Because of the

sudden change of the game,

the firms thought of changing

their business models as well:

to accommodate more

women into the workforce

and to inspire them to stay by

adding extra incentives and

facilities that were missing

before. Several refiners are

even promoting women to

executive positions and

boosting women leadership to

prevail in the organization.

June

Like Oil and Water: The Oil

Industry and Millennials

The older executives of

various industries and

millennials are vastly

different—while the former

believes that the money

earned is the primary concern

for all job hunters, millennials

want to affiliate themselves in

a work environment that does

not compromise the planet

and the environment in any

way. Millennials also want to

leave a world-changing mark

upon humanity and uphold

the tenants of sustainability.

That is why, despite the big

salaries that come with

working in oil and gas,

millennials are turning away

from these corporations.

July

New Energy Industry

Employees – The Millennials

Millennials have a drastically

different outlook on what they

expect from their employment

experience. They are well

educated, skilled in

technology, very selfconfident,

able to multi-task,

and have plenty of energy.

They have high expectations

for themselves and prefer to

work in teams, rather than as

individuals.

August

The Latest Petroleum Mobile

Technology

With the constant rise of

smartphone ownership comes

the continuous surge of

various apps to go with it.

Apps have found a way to

integrate themselves in

every aspect of our lives, may

it be for paying your bills,

shopping online, or

entertaining yourself. In fact,

there is a dedicated app for

almost everything nowadays.

While most of these are

usually used for fun and

entertainment, we can

never deny that there are also

a plethora of mobile apps

that serve their purpose in the

fieldwork of various industries.

September

Blake Moret, Chairman and

CEO of Rockwell Automation

Joining the company in 1985

as a sales trainee, Blake

Moret worked his way up the

ladder and pioneered many

innovations in his leadership.

It is this personal experience

that he learned the three

major trends driving today’s

industrial environment—the

rise of the middle class in

emerging economies, the

growing need of more digital

natives and tech-savvy

workers who can quickly

take the reins of any tool and

system-dependent task, and

globalization itself.

October

When Petroleum Robots Take

Over the Industry

As oil companies move out of

their conventional oilfields, the

risk and hazards

drastically increase. Offshore

oil locations, although

capable of supplying the

majority of the oil demand of

the globe, pose a considerable

risk for human workers.

So instead of deploying

humans to explore and inspect

these sites, automated robots

are now set on the oil hunting

journey.

November

The Latest Oil and Gas Trends

with BAUER Compressors

Bauer Kompressoren’s

TankSafe Nitrogen Blanketing

System. This ingenious

system creates a nitrogen

blanket layer inserting the

headspace of tanks to

prevent the risk of explosion

and reduce tank corrosion.

With state-of-the-art products

such as the OE13, Rigforce,

Bauer NGM, SNGH, and

Nitromax, Bauer

Kompressoren aims to make

the oil and gas industry safer

for each employee under its

belt.

5

C O N T E N T S

8

The Safest Water Dispenser in the

Philippines

10

How to Find The Magic of

Industry 4.0

12

11 Must Have Products

In Your Jobsite

18

2019 Oil & Gas Trends & Forecast

40

Digital Marketing in Oil & Gas

Industry: How It Works

62

The Potential of Blockchain

Technology in the Oil & Gas

Industry

78

Cybersecurity Risk in the

Oil & Gas Industry

96

Revolutionary Women

Empowerment in the

Oil and Gas Industry

114

Like Oil and Water : The Oil

Industry and Millennials

132

Millenials Gaming into

Technology and Energy

148

Mobile Apps in the

Oil & Gas Industry

162

The Journey to a Connected

Enterpise

182

How Robots Will

Takeover Oil & Gas

192

The Lates Oil & Gas Trends by

BAUER

6

Regional Office: LG Electronics Gulf FZE, P.O Box 61445, Dubai. Tel: +971 4 279 9222, UAE, Mr. Amjad Abu Alika, Tel: +971 50 450 9808, email: amjad.abualika@lge.com; Fortune

International Trading LLC, Mr. Wail Halbouni, Tel: +971 50 481 3570, email: fortintl@emirates.net.ae; Ghantoot Trading, Mr. Nour Haboush, Tel: +971 50 109 4109, email:

nour.h@ghantootgroup.ae; District Cooling Company, Mr. Ahmed Henedi, Tel: +971 50 658 4832, email: ahmed@districtcoolingcompany.com; Al Yousuf Electronics, Mr. Moitra, Tel: +971

50 457 6170, email: pmoitra@alyousuf.com; Bahrain, AJM Kooheji and Sons, Mr. Jayachandran, Tel: +973 36888801, email: v.jayachandran@ajmkooheji.com: Al Babtain Air Conditioning &

Refrigeration Co., Mr. Naji Kataya, Tel: +965 5 051 5771, email: nkataya@albabtaingroup.com,kw; BLK, Mr. Imad Rhayel, Tel: +965 5 157 1229, email: irhayel@blk.com.kw; Oman, Oman

Gulf Enterprise, Mr. Narender Kumar, Tel: +968 9 747 4505, email: narenderk@otegroup.com; Aspire Projects and Service, Mr. Vivek Wagh, Tel: +968 99357694, email:

vivekwagh@aspireoman.com; Azerbaijan, NBC LLC., Mr. Elkhan Sadikhov, Tel: +994 50 216 3363, email: elkhan.sadikhov@nbc.com; Al-Con Maxiwell Group, Mr. Vagif Alexperov, Tel: +

994 50 216 2092, email: maxiwellbaku@inbox.ru; Armenia/Georgia, ARAY Gulf, Mr. Vilson Melikjanyan, Tel: +374 9 307 7755, email: vilson@aray.am; Yemen, Modern House

Exhibition, Mr. Khaled Jabr, Tel: +967 71 172 0202, email: mail@mhe-yemen.com; Pakistan, Iceberg Industries (Lucky Goldstar), Mr. Imran Jamil Khan, Tel: +923 21 277 6100, email:

ceo@icebergindustries.net

FEATURE STORY

The Safest Water Dispenser in the Philippines

They say that water is the lifeblood of all

things. It’s necessary for healthy living

and a happy mood. However, the ironic

thing is, a lot of people in urban areas in

the Philippines just don’t drink enough. For some

reason, office workers and frequent over-timers

aren’t hydrated enough. It may be the stresses of the

corporate life, the stigma that the only beverages

one needs in this day and age are coffee and alcohol,

or the inadequacy of the current water dispenser

in the office. TOSOT may not have a solution to

change the working or drinking behaviors of

people, it does have one of the best solutions for the

third reason: the TOSOT Water Dispenser.

Its two types, the Bottom Load Water Dispenser

and Table Top Water Dispenser, are kitted with a

wide array of features aimed to appease the

thirstiest of people.

It’s not every day an employee comes up to their

office water dispenser and, while filling their

tumbler, thinks about how they can have better

quality drinking water—it’s simply an uncommon

thought but one that is definitely worth thinking

about. Like all things, problems appear when one

looks closely and takes in the daily routines of

getting water.

One such hassle of the everyday drinking water

dilemma is the awkwardness of being the person

who has to replace the gallon-large bottles of water.

For those who actively avoid the gym, this task is

counterintuitive—you have to lift and break a sweat

to get a cold refreshing drink.

Luckily, the TOSOT Water Dispenser promises no

more lifting and no more back pain when loading

a water container. With a 304 stainless water tank,

the TOSOT Water Dispenser is a beautifully crafted

endorser of ease of use. The bottom loading water

dispenser is personally tailor fit for hassle-free wa-

8

ter container loading, giving even the most averse

to the weight rack an easier time with quenching

their thirst. All they really need to do is push the

large bottle in and you’re good to go!

Also, unlike run-of-the-mill water dispensers found

in most buildings, the TOSOT Water Dispenser

also offers three faucets that pour water with

different temperatures: hot, cold, and lukewarm.

This eliminates the second type of water-related

hassles, which is becoming a chemist as you

frantically mix hot and cold together to get your

perfect warm water mixture.

As a bonus, the TOSOT Water Dispensers also have

a certain sleekness to their design. While most

people imagine a white, plastic contraption

supporting a large, awkward cylinder of water, these

dispensers sport a cleaner, sleeker metallic look that

fits like a glove to most minimalistic and

modernized office and workspaces right now.

Common finishes include black, silver, and stainless

steel.

They are also the perfect size and are able to fit

smoothly anywhere. If you’re concerned about

where you would place the TOSOT Water

Dispenser, then know that both variants have their

rightful places anywhere. TOSOT’s bottom

loading water dispenser is sleek and flat, and

placing this water dispenser in any corner is like

fitting the last little piece in the last space of the

magnificent corporate puzzle. For a more

personalized setup, TOSOT’s table top water

dispenser is the perfect low key water dispenser

that does not infringe upon the overall theme of the

workplace.

Lastly, the TOSOT two Water Dispenser variants

dispense only clean, high quality water. It’s a

simple detail most would overlook, but different

water dispensers dispense water that “tastes”

different, if only a tad bit. The various tastes are

nuanced but ultimately speak a reality about the

water dispensers: that both the brand and the

model matter. With TOSOT’s two water dispensers,

water is purified, cooled to perfection, and comes

out looking like liquid diamond. The taste is subtle

and perfect for thirsty throats and hits the mark of

refreshing all those who need a healthy drink every

now and then.

So, whether you’re working in a humble start-up

or have cemented yourself in one of the biggest

agencies and companies in the Philippines, you and

everyone else requires the water of TOSOT’s two

types of water dispensers to kit the office pantry,

hallways, executive rooms, meeting rooms, and

other such places. Because as they say, staying

hydrated is good for the mind, body, and soul,

and with the TOSOT Water Dispensers just right

around the corner, you can constantly and easily

stay refreshed, hydrated, and focused as you burn

the midnight oil.

9

How to Find The Magic of Industry 4.0

I believe that when it comes to industry 4.0, the

true potential of your enterprise is not in what it

does, but what it can do. The potential of your team

is not what they can do today, but what they could

do in the future. The opportunity doesn’t lie in what

we know, it’s in what we don’t know yet.

The rate of change in the modern world is

staggering and it shows no sign of slowing down

– in fact, it is speeding up. Industry 4.0 is both an

example of this, and a result of it. Digital transformation

is at the heart of fundamental societal

changes that are emerging. In the region that I lead

for Rockwell Automation – specifically the Middle

East, Turkey and sub-Saharan Africa – there are

huge changes in progress.

Let’s start with the Middle East. It’s an area that is

no stranger to change, with great cities having risen

from the deserts – as well as great economies. And

the industrial change in the area now is one of rapid

diversification as whole new industries are

envisioned at national levels and realized at

break-neck speeds. Turkey, the ancient empire(s),

bridging Europe with Asia, bridging tradition with

future, bringing cultures together, is another

market with enormous potential and possibilities

for growth, always in a cycle of changes and

reinventing itself.

The continent where everything started for

humanity is set to reassert its position in our future.

In sub-Saharan Africa, the population is projected

to double by 2050. In fact, in the next 30 years the

world’s population is set to grow by an incredible

2bn – an increase of more than 25% - and a large

portion of that growth will be in sub-Saharan

Africa. This exponential population growth comes

at a time when the largest demographic for this

region will be of working age – a fact that points to

the potential for huge economic growth. Growth,

incidentally, that will be championed by the digital

generation.

The opportunities for industrial enterprises in these

regions are evident. There is no doubt that the

enterprises meeting the needs of the new markets

by leveraging Industry 4.0 technologies and

strategies are the ones that will succeed.

For most enterprises though, leveraging Industry

4.0 technologies requires strong change

management capacity. It requires learning new

skills rapidly, investing in the workforce, investing

in new approaches, systems and technologies. It

requires embracing disruptive technologies – and

often it will entail being a positive disruptor.

10

Finding the Magic

We’ve probably all seen the diagram of two circles

that don’t overlap, where one is labelled “your

comfort zone” and the other is labelled “where the

magic happens.” It’s one of those that you look at

and instantly recognize the truth of – and perhaps

with a tiny sinking feeling as you realize that

maybe, you should get out of your comfort zone a

little more.

The implicit message of that diagram is that

“magic” requires change. It is something I believe

very strongly, and I’m inspired by the words of Walt

Disney (who knew more than most about magic):

“If you can visualize it, if you can dream it, there’s

some way to do it.”

I can’t think of a better message for industrial

enterprise leaders in this era of change. We stand

with the makers, the doers, the builders; the

innovators. Our most successful customers in

adopting industry 4.0 approaches have taken the

step of visualizing. They have dreamed of what

could be done. By coupling this human ingenuity

and innovation with the power of machines and

Rockwell Automation solutions – we always find a

way to do it.

That’s where the magic of Industry 4.0 happens.

Take a look just outside your comfort zone, the

benefits are close at hand, but industry leaders must

embrace change to find them.

If you can visualize a bright future for your

enterprise, come and talk to us, and we’ll help you

connect the imagination and ingenuity of your

people with the intelligence of machines to make it

happen.

About Rockwell Automation

Rockwell Automation Inc. (NYSE: ROK), the

world’s largest company dedicated to industrial

automation and information, makes its customers

more productive and the world more sustainable.

Headquartered in Milwaukee, Wis., Rockwell

Automation employs approximately 23,000 people

serving customers in more than 80 countries.

11

FEATURE STORY

11 Must Have Products

In Your Jobsite

A complete job site is a safe job site. It’s how you

want things to be, especially for your hardworking

men. The work area, like any other office, should

have the complete tools to be efficient and

time-bound.

In other words, these are the necessary tools to have

if you want your construction job to be smooth

sailing.

Here are some of the products you should have at

hand in your construction site:

1. WELDING SOLUTIONS

The welding equipment is the first thing every job

site should take into account. And the best welding

solutions come from Lincoln Electric.

Their welding machines are extremely versatile

and capable of both small home projects and big

commercial demands. It works smoothly in

soldering various types of metals and has a long

lifespan. It is easy to use and has low electric

consumption.

2. THREADING & PIPE FABRICATION

SOLUTIONS

The right product applications of threading and

pipe fabrication machines are important for any job

site. You wouldn’t want your building to have faulty

meager threaded pipes for ventilation. It’ll take a lot

more time, money, and resources to redo.

When handling pipelines, it’s better to get it right

the first time around and trust in the reliable

threading and pipe fabrication solutions from

RIDGID ®. They have threading and pipe

fabrication machines that produce highquality

threads and long-lasting pipe dies.

12

3. DIAGNOSTICS, INSPECTION &

LOCATING SOLUTIONS

A construction site needs more than the human eye

to determine if the job is done right. We need

machines to let the engineers know the blind and

weak spots of the job site.

Luckily, we’ve got RIDGID ® who produces superb

diagnostics, inspection, and locating solutions.

Their machines set the standard in durability to

finish the job.

Their powerhouse diagnostics equipment includes

the RIDGID SeeSnake® video inspection systems,

the NaviTrack Scout®, RIDGID hand-held

inspection cameras, and the RIDGID handheld

diagnostic equipment.

With these tools at hand, your mind can be put at

ease that you haven’t overlooked any important

construction details.

4. DRAIN CLEANING

Drain cleaning is one of the lesser joys in erecting a

building. However, the strenuous task shouldn’t be

taken lightly because it’s the plumbing your

building will have for a long time. You wouldn’t

want your credibility ruined just because the drains

are clogged or dirty.

With RIDGID’s ® Drain cleaning machine,

cleaning drains are easy and long-lasting. Plus,

the new RIDGID® FlexShaft drain cleaning

machines are lightweight, so they’re easy to lug

around the Jobsite without requiring extra

manpower and effort.

5. POWERTOOLS

Of course, no job site is complete without power

tools. Your workers need superior strength when

drilling through walls, setting a foundation, and

more. It’s the heavy-duty equipment every job site

needs. And the most premium power grade tools

produced only by Dewalt, Bosch, and Stanley.

These brands focus on giving your men the power

they need in building houses or skyscrapers.

13

6. MECHANICAL TOOLS AND OTHERS

Another must-have product every job site needs

are mechanical tooling kits and ancillaries. There

are plenty of brands in the market but only a few

stood out when tested and proven: Proto, Facom,

Stanley, and Tactix mechanical tools.

They’ve created remarkable products such as the

PROTO® Tether- ready tools, lanyards and

attachment points with retrofitting capabilities.

The complete and cost-efficient Facom® CM.160A -

527Pc Mechanical Tool Set. The perfect basic tools

every job site needs.

The STANLEY® 28 in. FATMAX® Structural Foam

Toolbox which can handle medium to large

mechanical tools made from durable

thermoplastic resin.

And lastly, the Tactix® power tool accessories,

which have a longer than usual lifespan from most

power tool accessories.

7. LIGHTING SOLUTIONS

No job site is complete without lighting solutions.

If not, it can pose hazardous threats for you and

your workers. We’re talking about men working

through the day and the dark of night, so the

lighting equipment you should have in your

arsenal has excellent quality.

Pelican® is now offering the 9490 Remote Area

Lighting System (RALS), which is a mobile lighting

solution you can whip out any time you want. It

has over 6000 lumens and 3 preset light levels. The

perfect lighting for construction in dark areas.

8. MATERIAL HANDLING SOLUTIONS

Another product every construction site need is

a storage space for their materials and tools.

Proper storage is vital in any job site, especially

when taking tools into account. You wouldn’t want

any important equipment to go amiss when you

need it the most.

For great storage solutions, trust in Storageworks,

Durham, Stanley, or Toh. These four brands manufacture

great material handling solutions. All of

them highly durable with a flexible price range for

any budget.

9. DOOR HARDWARE SOLUTIONS

Doors are essential parts of any infrastructure,

residential or commercial. So if you’re in a job site,

the right door hardware solutions should be kept in

your inventory.

Baldwin, Domakaba, and Yale are well-known

choices for door hardware. They offer great

varieties of styles, affordable hardware, and even

manufactures customized door materials.

Chubbsafes is an exceptional safety vault for

your valuable items at any given jobsite.

10. PLUMBING SOLUTIONS

Plumbing is an important matter for every job

site. Without proper plumbing, your building is in

danger of flooding or water damage. That’s an even

bigger issue for the future.

Get it right today with Dyson or Delta plumbing

solutions. They provide high-grade piping systems

and materials for both buildings and houses. They

last longer and offer the more cost-efficient prices

compared to other products in the market.

11. CLEANING SOLUTIONS

Cleaning time is the signal your job is near its end.

Finish your new infrastructure with the best

cleaning solutions out there from RIDGID ®,

Nilfisk, or Viper. They can scrub your job site

clean and ready for its occupants.

Especially Nilfisk ® which is an established leader

in cleaning technology. They offer a wide range of

industrial vacuums, sweepers, and scrubbers in the

market today.

So remember, before starting work at your job site,

tick off every single product we mentioned above

for a better construction job. It’ll save you both

time and effort in the long haul. Apart from

efficiency, having all these products also

promote the well-being of your workers.

Where to Buy?

Co Ban Kiat Hardware Inc. is the largest authorized

distributor of the best industrial hardware solution

brands in the Philippines.

14

Edsa Corner Shaw Boulevard

Mandaluyong City, Philippines

Phone +632 6364895

Phone +632 6364896

About CBK Hardware

For almost a hundred years, a family’s surname

has become synonymous to the country’s biggest

hardware supply company. Co Ban Kiat Hardware

Incorporated, of the Cobankiat family has a regular

client network of more than 1,500 industrial

organizations; 1,600 traditional community

hardware stores, and 584 home building specialty

chain of stores across Luzon, Visayas and

Mindanao. This ever-growing conglomerate traces

its humble roots to Manila Chinatown, as a pioneer

enterprise started by family’s patriarch,

Mr. Cobankiat in 1920. Despite the ruins of World

War II, the business goes back to its feet in 1948,

rebuilding a storefront from the very same spot

where it was known for three decades.

This ever-growing conglomerate traces its

humble roots to Manila Chinatown, as a pioneer

enterprise started by family’s patriarch,

Mr. Cobankiat in 1920. Despite the ruins of World

War II, the business goes back to its feet in 1948,

rebuilding a storefront from the very same spot

where it was known for three decades.

While the Filipinos continue to rebuild their lives

post war, CBK Hardware sees the opportunity to

introduce the retail concept once unheard for in

hardware industry. The Hardware Workshop Store

is the fruit if this endeavor. CBK Hardware further

cemented its legendary distribution channel with

the creation of Coby’ Design Center in Edsa Shangi

La in 1996, a specialty store that caters to discriminating

taste of modern Filipinos.

To shop online, visit

https://www.cbkhardware.com/

Co Ban Kiat Hardware, Inc.

Ground Floor Cobankiat Building II

231 Juan Luna St. Binondo Manila, Philippines.

Phone +632 2476557

Phone +632 2432734

Coby’s Designer Center

Unit 467 level 4 Shangri-La Plaza

In 1997, Mr. Johnny Cobankiat, the 4th generation

Cobankiat leader, set another milestone for the

company when he brings a franchise of Ace

Hardware USA to the Philippines, and signs up

CBK Hardware as one of its major suppliers. This

further expanded into delivering quality world class

products nearer to families of Filipino overseas

workers in the countryside.

A century’s excellence can quickly pass, and guided

by the vision to be the largest network supplier of

the biggest global brands in the hardware industry,

CBK Hardware resolve to source the best products

to supply its customers anytime and every time.

15

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students of any ranked university in the world.

2019

Oil & Gas

Trends

&

Forecast

In recent years, the oil supply has gone

down rapidly. From 2.5 million barrels

per day production in 2014, according

to IEA Oil Market Report in December

2017. To accelerate its rebalancing, the

Organization of Petroleum Exporting

Countries (OPEC) with its non-OPEC

members decided to cut the supply by

1.8 million barrels/day.

06

6

18

7

19

B COVER E S T S T O STORY R I E S O F 2 0 1 9

8

20

O I L & G A S

L E A D E R S

n the other hand, the

O

chemical industry has

experienced growth in

the past years due to

an effective portfolio

restructur- ing for the past two

decades. Moreover, China’s economic

growth has required a massive need

to import supply from other countries

as it cannot stand on depending on its

domestic capacity alone. This paved

way for the growth of businesses in

Western Europe and Northern America.

Despite the setbacks faced by the

industry, there is still room for expectations

this coming 2019. The trends

that we will tackle today will have a

great impact on bringing back the oil

and gas industry to its desirable place,

balancing prices amidst demands. Furthermore,

it will also be a challenging

year for the chemical industry as the

industry’s return on invested capital

(ROIC) performance has become less

favorable in the past five years.

As businesses

are pursuing

a hundred

percent digital

operation,

stringent

policies and

guidelines are

on the rise.

9

21


PORTFOLIO

MANAGEMENT

&

PRODUCTION

INCREASE

All industry participants are

pressured today as oil and gas supply

could potentially crunch while prices

keep on plunging. While the US issued

waivers for sanctions imposed on

Iran, OPEC will keep on protecting the

revenues of member countries while

preventing the US to keep their oil

production surging.

In the chemical industry, the

weakening of the industry’s concentrated

structure and the entrance of

new players in the markets, resulting

in overcapacity, are the factors why the

10

24

O I L & G A S

L E A D E R S

financial performance of the industry

is slowing down. Despite the advanced

approaches made, the global demand

is declining, specifically in China,

where chemicals were once in a good

place.

Adjusting portfolios is one of the

key solutions to strategically improve

the market. Much scrutiny is needed in

order to remove the assets that do not

meet the standards. For example, BP,

one of the largest oil and gas companies,

has implemented a criterion

in which it would only approve new

projects that were profitable at less

than $40/bbl. This kind of portfolio

management, however, should be considerate

of the factors affecting smaller

and independent companies.

Meanwhile, the chemical industry

Adjusting

portfolios is

one of the key

solutions to

strategically

improve the

market. Much

scrutiny is needed

in order to

remove the assets

that do not meet

the standards.

11

25


is expected to grow at a rate of 2.7%

per year to 147.5m tons by 2027,

according to the Gulf Petrochemicals

and Chemicals Association (GCPA).

Saudi Arabia and the US are head to

head in chemical production for the

coming years. The US will be expected

to increase its industry capital spending

by an average of 4.7% next year

according to the American Chemistry

Council (ACC).

The US will be expected to

increase its industry capital

spending by an average of

4.7% next year according to the

American Chemistry Council (ACC)

12

26

COVER STORY

14

28

21

15

29


DIGITALIZATION

Technological transformation is

also rapidly taking place in the chemical

and oil & gas industry as companies

seek more ways to speed up

production and make decision-making

better. As the market face high volatility

and lower prices, the industry invests

heavily on technology to improve

production, prevent losses and push

for a more sustainable and cost-efficient

system.

Oil and gas companies are investing

in cloud computing services to better

manage data across organizations,

providing seamless availability and

access for scalable computing power.

Meanwhile, big data and analytics are

also happening in the industry as it

allows companies to gather valuable

insights from different sectors, giving

16

30

31

18 32

19

33


them an outlook of what to ameliorate

or upgrade. A growing interest in

prescriptive analytics is brewing as

this sophisticated methodology can

help detect problems in a system and

provide exact solutions on-hand.

Internal and external data from

oil fields are also relevant to keep

the process smooth that is why more

businesses are upgrading their digital

oilfields which integrates sensors and

other advanced devices on pumps and

other important parts of the system.

Meanwhile, the Internet of Things

(IoT) as ever, will provide in-depth information

on manufacturing processes

and operations which could balance

production costs.

The Internet

of Things (IoT)

as ever, will

provide in-depth

information on

manufacturing

processes and

operations which

could balance

production costs.

20

34

COVER STORY

The year 2019 might be just as

challenging as the previous year as

political and economic issues keep

on affecting production and prices.

Oil and gas, as a commodity in most

parts of the world, will surely make an

impact on the littlest activities of communities,

as prices of goods depend on

it. Meanwhile, the chemical industry

competition will continue to surge to

meet the global demands.

24

35

22

36

23

37

Digital Marketing in

Oil & Gas

Industry: How It Works

Here’s a step by step guide for the energy industry marketers.

Including the keywords of the top 30 oil & gas companies.

Are we on the

first page of Google

search? Have

we made it on

top? If not, are

we getting there?

For most of us,

marketing professionals,

we ask

these questions

very often. Few

of us really know

the answer. The

tendency of every

marketing professional

out there

is to hire a digital

agency who

doesn’t know the

industry dynamics

of the energy sector.

840

9 41

C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

10 42

O I L & G A S

L E A D E R S

So, before you do the

same, perhaps you

can look into hiring

a marketing professional

who can guide

the marketing department

(let’s say, hire me?). As soon

as you hire a marketing professional,

then the Oil & Gas

marketing team will learn and

understand the dynamics of

content, engagement and digital

infrastructure. Once that is

achieved, you can then start

the agency-hiring process.

During the selection process,

ensure that they know the difference

between downstream,

upstream and midstream, offshore

and onshore, refining,

process, and petrochemicals.

The agency should talk and

understand the language of oil

& gas.

The Oil &

Gas marketing

team will learn

and understand

the dynamics

of content, engagement

and

digital infrastructure.

11

43

C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

They should eat riggings

for breakfast

and drink crude at

night. Print is dead.

That’s what the case studies

are saying in any business

school. Whether Kellogg, Stanford,

Harvard or Oxford, they

are unanimous in saying that

Print is dying and that digital

is the way forward. That is the

inevitable truth. Marketing professionals

who are working in

energy, oil & gas or petrochemical

companies should now

embrace this , or they will be

left out, along with the fax machines

and cassette tapes.

Print is dead.

That’s what the

case studies

are saying in

any business

school.

So what is the next big thing in marketing

communications for Oil & Gas?

Well, you are looking at it

right now… You are probably

using it 3x-20x per day. It’s in

your bag. Yup, it’s digital marketing

right inside your mobile

devices.

What we’ve learned from

Philip Kotler 10-20 years ago

is still valid. The basic principles

of marketing will always

remain the same.

12 46

C O V E R S T O R Y

O I L & G A S

L E A D E R S

What really happened is

that the implementation of the

basic fundamentals has been

disrupted because of the advancement

of technology. For

14

example, the “segmenting-targeting-positioning”

that you

learned in college is no longer

a valid case for some industries,

like solar power consumer

panels, oil pipe suppliers,

processed oil manufacturers

and small-size power generators.

47

C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

Take a look at the case study

of Hubspot by Harvard Business

School Professor Jill Avery.

The concept of segmenting

the market, defining your

target and positioning your offering

is no longer valid. By using

technology, oil & gas companies

can do it backwards.

From S-T-P to P-T-S, which

means Position your offerings,

Target the lucrative customers,

then Segment which clients will

go to the priority list. Hubspot’s

Inbound marketing can be a

successful tool for the energy,

utilities or oil and gas industry.

This will lead me to the second

question.

When procurement specialists, maintenance managers, or

engineers search for a particular solution, do marketing professionals

know which keywords they are using?

16 48

O I L & G A S

L E A D E R S

To understand the process

of SEO, PPC, and adwords,

you need to understand the

industry, your competitors and

your customers. You need to

speak the same language.

So, how are you going to do

that?

In this specific case study, I

have listed the top 30 largest

oil and gas companies in the

world. What language, keywords

and phrases do they

use on their websites, blogs,

socials and press releases. In

my honest opinion, if you understand

the language of the

oil & gas industry, then you can

create an SEO-friendly & compelling

inbound marketing content.

Using Platts

Top 250 Energy

List of

2016, I have

segmented

the list into 5

categories:

1. Integrated oil and gas companies

2. Oil and gas exploration and

production companies

3. Oil and gas refining and

marketing companies

4. Oil and gas storage and

transportation companies

5. Oil and gas companies in

Middle East

Click here to see the list.

17

49

18 52

53

C O V E R S T O R Y

If I am targeting oil & gas companies, how much do I

need to spend for each promotional mix?

An exhibition will surely

cost you a fortune –

considering the space,

exhibition stand, manpower,

collateral and gift items. Depending

on your budget and

goals, you can allocate 30% –

40% of your marketing budget

to events. Exhibitions, conferences,

trade shows and other

events are still relevant, especially

in renewables, utilities, oil

& gas and construction industries.

However, they are costly

and prices vary between $500

– $1500 USD per sq. ft. If you

want to meet your existing clients

face-to-face, or acquire

new leads, or perhaps educate

engineers about your oil & gas

solutions, then this is a viable

marcom plan. But if you are

tight on budget and still want a

face-to-face engagement with

an oil & gas audience, then you

can opt for webinars. You can

invite petroleum engineers,

HSE professionals or maintenance

managers and create a

30-minite presentation, plus 30

minutes of Q&A. Webinar in the

oil & gas industry is a great tool

to showcase your products,

educate the audience, or explain

your solutions toa niche

audience at the comfort of their

offices and homes. The difference

between the cost of a webinar

and a trade show / exhibition

is huge. Again, depending

on your goals and budget, you

may use one of them or both.

20 54

B E S T S T O R I E S O F 2 0 1 9

Another 30% – 40% of the

marketing budget can (or

should) be allocated in transforming

your marketing efforts

into digital. The marketing migration

plan to digital platform

should be thoroughly thought

of, and should give premium to

security, effectivity and cost-efficiency.

If you’re still keeping

those clients lists on excel, or

maybe using those old CRM

platforms that don’t work because

the fields are ineffective

C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

and cost-efficiency. If you’re

still keeping those clients lists

on excel, or maybe using those

old CRM platforms that don’t

work because the fields are ineffective

and they are cumbersome

to populate, then it is time

to switch to cloud-based CRM.

I personally like Salesforce and

integrate it with Marketo. They

are very powerful, efficient and

marketing-friendly tools that

will allow you to acquire new

clients, monitor reports, analyze

data and engage with

clients via newsletters, emails

and social media. (I am not

paid by Salesforce or Marketo,

I just like their technology. They

fit the oil & gas industry).

While you are working on

your marketing cloud infrastructure,

you can still move

forward and invest on content,

social media, blogs, website

media section and online press

releases. You need these marcom

tools to amplify your key

messaging and be seen online.

Why use these online tools?

Well, you might have the best

product, let’s say an “offshore

pump equipment”, but your

marketing team cannot properly

communicate to the oil

and gas engineers. How would

you think will they find those

pumps? Therefore, you need

online marketing tools to send

those key messages to the

operations, maintenance, procurement

and oil & gas professionals.

The Right SEO

for Oil & Gas

When creating a post, blog

entry or article, your content

should match the search keywords

being used by your clients.

The oil & gas industry has

the most complicated list When

creating a post, blog entry or

article, your content should

match the search keywords.

being used by your clients.

22 56

O I L & G A S

L E A D E R S

The oil & gas industry has the

most complicated list of products

and equipment, so be

sure that you know specifically

the keywords. The basic

foundation of any SEO is to

understand how your potential

customers search a product

on Google. Understand first

your target market, then use a

marketing SEO tool. Let’s say

you are an aerial access rental

company and targeting an oil &

gas camp site, you may want

to include keywords, such as

“boom lift rental in Dubai for oil

& gas engineers”. You have the

product + location + the industry

target.

Furthermore, investigate the

keywords being used by your

competitors in the energy industry

and use a marketing diagnostic

tool that will populate

the word density, then compare,

and find out what are the

most used keywords from their

website pages using tools like

SEMrush… wait a minute, this

is too detailed and technical…

Just drill down on your competitors’

keywords, then analyze

the most commonly used keyword.

Your oil & gas products

or solutions should match what

your audience will use when

searching Google.

After identifying the most

used keywords, you can now

create compelling stories using

the language of your oil & gas

clients.

Invest on marketing assets

like images and videos. Stories

with visuals are the most nvest

on marketing assets like images

and videos. Stories with

visuals are the most powerful

way to educate your clients and

be seen online. Did you know

that millennial engineers and

procurement specialists like to

watch videos and understand

the product specs before recommending

a product to their

managers? A camera will only

cost you $100 – $500 USD, and

your phones are also capable

of taking high resolution images/videos.

Take a photo/video

of your operations, products,

transportation and activities.

Two photos per day is an ideal

number of snaps. Next thing

you know you have 500+ pics,

ready to be posted on social

media & blogs.

You should allocate around

20% – 30% of your budget on

your external digital communications.

Linkedin is best avenue

for brand building and lead

generation. There’s a gamut of

oil & gas engineers, managers

and leaders who are frequently

browsing on their news feed.

Twitter is the best medium for

spreading your latest news

while Facebook is your best

medium to engage with your

stakeholders and employees.

-end-

23

57

24 58

Invest on marketing

assets like images

and videos.

Stories with visuals

are the most

nvest on marketing

assets like images

and videos.

Stories with visuals

are the most

powerful way to

educate your clients

and be seen

online.

2 59

The Potential of

Blockchain Technology

in the

Oil & Gas

Industry

Is the industry ready to integrate blockchain

technology?

Upon hearing the term

blockchain, the first thing

that will come to your mind is

bitcoin and other cryptocurrencies.

But blockchain isn’t

merely about cryptocurrencies.

This technology creates

secure ledgers for digital

transactions and accelerates

various online transactions.

No wonder why many global

business leaders are using

blockchain.

Oil and gas companies

evolved itself into a dataintensive

industry with the

involvement of the Internet of

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C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

Things, machine learning, and

even artificial intelligence. No

doubt, the industry has grown

and expanded which makes it

even more necessary to adopt

advanced blockchain

technology.

delivery and operational

performance. Aside from that,

it can also help oil and gas

leaders in many different ways.

Let us look into how the oil and

gas majors could benefit from

its integration of blockchain.

Using blockchain can help the

industry improve in service

64

C O V E R S T O R Y

O I L & G A S

L E A D E R S

Benefits of Blockchain

The oil and gas industry needs

advanced technologies to

improve workflow management

and reduce operational losses.

The blockchain technology is

an answer to that.

Aside from the

aforementioned, this

technology can also

help in the betterment of

operational performance and

service delivery. Supply chain

management, which refers to

the management of the flow

of goods and services, should

also be applied. This involves

the tracking of raw materials

and the improvement of quality

control.

Blockchain technology can be

used in classifying and

tracking raw materials to

improve quality control. The

complete supply chain of the

raw materials from the source

to end user can be identified

and tracked through the

distributed ledger system.

Blockchain can also help in

the preservation of digital data

from sourcing the raw

materials to trading and

reselling the finished product.

Potential damage and leakage

of sensitive data will also be

avoided.

Data tracking is easier and

more secure with blockchain

technology. It can also help

in asset management and in

tracking regular maintenance

updates. Aside from that,

compliance and regulatory

matters are made possible

through the analysis of

recorded data. With

blockchain, it is quicker and

easier to extract information

while ensuring authenticity

of data.

Manual transactions and

third-party involvement can be

eliminated since all

transactions are already

automatic. This results in better

customer service, faster, more

accurate and cost-effective

processes. It also improves

transparency among the

parties involved in the

contracts since everyone will

have access to data. This

will result in fewer contract

disputes and better flow of the

business.

Some big names of the oil and

gas industry could be at the

forefront of the deployment of

blockchain technology in the

next years to come. This

includes Royal Dutch Shell, BP,

Gazprom, Statoil, and Repsol.

65

Roadblocks to Blockchain

Integration

The potential of blockchain in

the oil and gas industry is

palpable. Some executives

and leaders of this industry

acknowledge the fact that

blockchain can help reshape

their business. However, not

everyone is open to such

changes. Others are

concerned about possible

disruptions and they remain

unsure if the technology could

counterbalance the risks and

investments that are required

during first entry.

the industry. Currently, the

technology has very little

impact on the oil and gas

business which hinders a

thorough assessment of its

current and future value.

However, considering the

huge role of the Internet of

Things (IoT) in the expansion

and growth of the industry,

blockchain could be a good

vessel to bring this business

to higher grounds.

Lack of understanding for this

technology leads to doubts

on the positive impact it may

have in the sector. In a survey

conducted by Deloitte in 2016,

about two in five senior

executives of the US-based

companies do not have

enough knowledge about

blockchain. Meanwhile,

around 55 percent believe

that their company will be at

a competitive disadvantage

once they apply the

technology and 42

percent think that it has

disruptive potential.

One reason why executives

think this way is due to the

absence of adequate proof

that blockchain will work for

68

69

Data tracking

is easier

and more

secure with

blockchain

technology.

C O V E R S T O R Y

B E S T S T O R I E S O F 2 0 1 9

Will the Industry Use

Blockchain in the Future?

Acceptance of the latest

technological innovation on

the operations side is a lot

easier for the industry. The

usage of hydraulic fracturing,

3-D seismic and other

processes are concrete

proofs of the industry’s

acknowledgment and application

of technology. However,

there is a different story when

it comes to the back-office

function. The industry is slow

in bringing in new digital

technology that can help in the

supply management,

procurement of goods and

even on the finance areas.

72

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C O V E R S T O R Y

But it isn’t late yet. There is still

plenty of time for the industry’s

leaders to study and analyze

the potential of blockchain in

their businesses. Who knows,

major oil and gas companies

might be considering the

blockchain technology soon.

It could be one major

breakthrough in the

industry, but for now, there

are still countless hurdles

to overcome.

-end-

75

Cybersecurity

Risks in the Oil &

Gas Industry

What IT engineers need to know to safeguard your

company from cyber attacks

The use of the Internet has

both pros and cons. If not

prevented, vulnerability to

cyber-attack is one downside

that can bring dangerous

results that can cripple the

economy.

The oil and gas industry is

especially at risk of

cybersecurity attacks because

the vital role it holds in the

country’s infrastructure makes

it attractive to hackers and a

primary subject of political-

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B E S T S T O R I E S O F 2 0 1 9

ly-motivated attacks.

More than half or 68 percent of

the gas company respondents

of the study conducted by the

Ponemon Institute said that

they experienced a security

compromise in the past year,

which resulted in either loss

of classified information or

disruption in their operations.

A related report by Motorola

Solutions predicted that

cyber attacks on oil and gas

companies will result to losses

amounting to $1.87 billion by

2018.

As technological advances

continue to emerge, the oil

and gas industries become

more at risk of attacks. Here

are seven reasons your

company may be vulnerable

to cybersecurity threats and

how you can prevent the risk

of these happening to your

company.

80

O I L & G A S

L E A D E R S

1. Lack of Awareness

and Training

Even if there have already

been developments that

maximized the use of

technology in the oil and gas

industries, there are still tasks

that can only be done by

humans, which is why proper

awareness training is

important before they are

assigned to any job.

In most cases, if trainings and

awareness seminars are not

conducted among employees,

there is a greater chance that

an error that will make

systems susceptible to attacks

will be committed. It should

also be emphasized among

employees during awareness

trainings that mobile phones

they are using carry the risk of

being targeted.

By regularly conducting

trainings and seminars that

will make employees realize

what cyber security is and

how compromising them could

be dangerous, the culture of

cybersecurity will be instilled.

This is a good measure to

prevent employees from the

wrong use of company

systems.

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2. Cost-cutting

measures

When oil and gas companies

settle for IT products that are

cheaper, the tendency is

that they are also welcoming

security risks and

vulnerabilities. With outdated

control systems, hackers can

attack a weak link in the

supply chain in order to get to

the bigger organization.

It is thus important to see

beyond the prices of software.

Some may be more expensive

but they have security features

that can save you from

millions of worth of losses you

are going to incur if you

settled for the cheaper and

more vulnerable ones.

Like everything on the

Internet, cybersecurity threats

are continuously changing,

so it is just rational that the oil

and gas industries implement

frequent upgrades in their

software and infrastructure.

Another cost-cutting measure

is shifting to remote working

arrangements. Hackers can

be able to open and do

employee tasks without being

detected, so it is important

that proper security protocols

are implemented.

84

85

86

Because of the

vital role that the

oil and gas

industry play in

the economy, the

tendency is that

hackers would

be very willing to

hack them

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3. Insufficient data

network separation

Investing on systems used

to separate data networks is

something that most

businesses don’t realize they

need until they become

subject of cyber attacks.

Insufficient separation of data

can lead to hackers

accessing a good deal of

classified information.

Sixty percent of oil and gas

companies surveyed said they

lack staff that will help them

safeguard cybersecurity

programs. Meanwhile, less

than half or only 45 percent

are confident that they have

the capacity to handle

cybersecurity threats.

4. Unsecure data

rooms

Because of the vital role that

the oil and gas industry play

in the economy, the tendency

is that hackers would be very

willing to hack them. Strict

security should be

implemented in data rooms

through the use of key cards

and providing security to data

rooms.

5. Onshore and

Offshore Facility

In the oil and gas industry,

partnership between onshore

and offshore facilities is

imperative. This, again,

involves the use of mobile

devices for communication.

Yes, it is important that

communication lines are open

but caution should be made

as if hackers can access even

one facility, the two will be

affected. This is where the

importance of employing a

layered communication to

keep a seamless

communication line for both

facilities comes to picture.

90

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C O V E R S T O R Y

6. Plant Shutdown

In the case that the business

cease operations, a protocol

should be in place to make

sure that systems and

technologies are secured.

Aside from closing down,

power interruptions and other

concerns may also call for

evacuation from the premises

so it is important that a remote

security system is established.

Of the companies surveyed,

only 41 percent of oil and gas

companies keep track of their

digital infrastructure to make

sure that threats are identified

and prevented. Because of

this low figure, they also said

they believe that there is a

possibility that almost half of

cyberattacks they

encountered have gone

undetected.

-end-

93

Revolutionary Women

Empowerment in the Oil

and Gas Industry

What was supposed to be a “man only” job, women are

taking the initiative to achieve gender diversity in the

field of oil and gas

No more than 2% of the oil

and gas corporations located

in Western Europe and North

America have female

superiors. With only around

one-fifth of the oil and gas

industry’s ranks, women are

far less represented than any

other primary sectors. To make

it all worse, when Accenture

surveyed some US graduates,

only a disturbing 2% of them

are considering taking the oil

and gas route.

“Women are underrepresented

in the oil and gas industry,” is

truly an alarming statement by

96

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B E S T S T O R I E S O F 2 0 1 9

Katharina Rick, a partner at

The Boston Consulting Group

(BCG). She co-authored a

report with the World

Petroleum Council titled

“Untapped Reserves” which

basically promotes gender

diversity in the oil and gas

industry. Although she

mentioned how companies are

encouraging the inclusion of

more female employees in the

workforce since the late 1980s,

the numbers still didn’t exceed

the expectations. More female

workers are opting to proceed

into other industries with health

and social work having a 60%

female population, followed

by finance with 39%. Although

there are fewer women in the

construction industry with only

11% representation, the oil

and gas industry is not far off

having only 22%.

The reason behind women’s

dissatisfaction with the field

may be due to the limited

resources offered to female

employees. Lack of separate

facilities such as bathrooms in

plants and drill sites is a major

no-no.

But after the crude’s price

98

O I L & G A S

L E A D E R S

crash some years ago, oil

corporations are now

redefining their workforce.

An Ernst & Young Global Ltd.

survey in 2016 revealed how

gender diversity is essential

in boosting the company’s

financial performance, with a

surprising 61% agreeing to

this argument. More companies

are now recognizing how

much hiring and promoting

more women in the workforce

can enhance their overall

profitability. The oil and gas

industry is now shifting to

include a more balanced

organization.

At major global oil

refineries such as UK’s BP

Plc and Exxon Mobil Corp. in

the U.S., around 30% of the

workforce is now composed of

99

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women. The women in

office-based positions did

have an evident increase, but

those in the field works are

still at a staggering low. That

is why Exxon Mobil Corp now

encourages more women to

take up STEM studies and

later on recruit their skills for

the betterment of the

company. Although this

intensive effort to eradicate

the women deficiency in the

field seems to be a good start,

there is clearly more programs

and efforts that need to be

done. The ratio of the women

executive at Exxon may have

increased over the course of

the decade, but in 2016, it

is still at a low percentage of

18%.

Meanwhile, at the other side of

the world, some of Asia’s major

refiners like Idemitsu Kosan

Co. in Japan, S-Oil Corp in

South Korea, and Reliance

Industries Ltd. in India only

employ women personnel

comprising of no more than

10% of their current

population. But even though

most Asian firms are lagging

behind other regions in the

102

103

104

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105

B E S T S T O R I E S O F 2 0 1 9

world, SK Innovation Co. in

South Korea and Showa Shell

Sekiyu K.K. in Japan are now

focused on having more

women on board.

Urged by their former

European parent company,

the Hague-based Royal Dutch

Shell Plc, Showa Shell finally

took the gender diversity

challenge as they employed

more female than male last

2017, making 24% of their

workforce women. Although

the numbers did increase,

there is still prevailing

gender discrimination in the

organization as women are

questioned of their

capabilities and strengths.

There is also a noticeable

deficiency of women leaders

with only one female

representation in their

eight-member board and

only 13 out of 211 executive

positions held by women. To

uphold their goal of achieving

gender balance, the company

is now holding gender diversity

seminars and workshops for

108

110

C O V E R S T O R Y

men to understand how vital

diversity is in the workplace.

Showa Shell also plans to

increase woman leadership

and targets to double their

women leaders by the March

2020.

The Japanese and South

Korean refiners are also

adding extra incentive to

attract more women in their

organization. To promote

women rights as well, the top

three Korean firms

namely S-Oil, SK, and GS

Caltex Corp., have all

constructed daycare facilities

at their headquarters to aid

in their female employees’

needs.

Behind the improvements

major companies are now

offering to women applicants,

the field work still pose some

challenges, especially for

expecting women who may

not be as resilient to the tasks

assigned. Although this is a

major problem in this industry,

still more women are

encouraged to take on the

challenge and be a game

changer in this

gender-diversity deprived

work environment.

-end-

111

Why the oil industry isn’t a slick career path for millennials

Millennials are the

generational equivalent to

mass murderers, killing

multitudes of businesses and

industries in cold blood.

Products and services, as

well as corporations that are

deemed harmful to a better

tomorrow are instinctively yet

gradually destroyed by

millennial inaction. Their

immense unwillingness to

purchase whatever is offered

is a slow-acting poison.

Their hit-list is so extensive

and all-inclusive: from fanfavorites

such as fast food, to

the downright deserving such

as the diamond industry. But

there is no industry that gets

as much flak and

disapproval than oil and gas—

the top priority target in the

114

115

B E S T S T O R I E S O F 2 0 1 9

millennial manhunt for

unsustainable industries.

Millennials refusing to enter

into the oil industry to uphold

their environmental beliefs is a

prime example of this

generation’s eagerness to care

for nature, butting heads with

established conglomerates

dead set on creating

environmentally harmful

energy. While usage of crude

oil and petrol is the global

norm, it comes at much too

high a cost.

Because millennials seek to

align themselves with more

benign companies, sending

their resumes to oil industry

hiring teams is essentially

giving their souls away to the

devil. That said, just like all

the other industries millennials

have offed, the oil industry has

become a non-option for the

millennials when it comes to

finding a career.

According to an EY survey

published on June 2017,

careers in oil and gas have

become unappealing for 62%

of purposeful 22-to-37-year-old

millennials. This is because

giving their skills and talents

to such an industry will have

socio-economic and

environmental repercussions

in the future. They believe that

the oil industry experiencing

116

a downturn and drought in the

talent pool is dwarfed by the

adverse, future consequences

brought about by these types of

fuel.

Not only do millennials see the

ecologically damaging effects

of oil and gas in this industry,

but also perceive the

political landscape as

“unstable, blue-collar, difficult,

and dangerous”.

So what do millennials look for

in a job?

One thing people have to know

about millennials is that

everything they decide (what

they buy, where they go, how

they behave, etc.) is dictated

by their beliefs, which in turn

are shaped by their desire to

better the bleakness of this

world. Their goal is to leave a

future-improving legacy, albeit

in a realistic way. They are not

totally positive or overly

negative. They simply choose

to make the most of the cards

they have been dealt. When

they choose to off a certain

business, more often than not,

they ask themselves, “will the

world be better off without this?”

As stated in the EY survey, there

is a stark difference in what oil

and gas executives believe

millennials want in a job and

what millennials really want.

In classic “older executive”

fashion, the older generation

believes that their younger

counterparts care about the

technology with which they are

working, and view salary as the

quintessential prize to be won

despite being in disagreement

with the company tasks. Also,

too much emphasis was put in

117

how getting the work done with

the best gadgets and tools are

attractive to millennials (43%),

but this could not be further

from the truth.

While salary is still at the top

of the millennial priority list,

the younger generations seek

career paths that offer

sufficient work-life balance, job

stability and happiness, and

more importantly, are aligned

with their beliefs. True enough,

millennials care little about

using technologies in the

office, no matter how

avant-garde. At only 10%, this

was the least important driver

in the millennial search for a

viable career path.

The very nature of millennials,

in that they are purpose-driven

and socio-politically and

environmentally proactive

directly contradicts the oil and

gas industry’s main objective

whether they admit it or not.

But millennials aren’t just killing

the “bad” for the sake of

dispensing retribution. In fact,

millennials searching for

better, more sustainable and

least environmentally

detrimental alternatives, are

how these corporate giants are

being “killed”. One falls,

another rises.

In the context of finding career

paths, the younger

generations have opted to

find jobs in environmental fuel

technologies and more

companies that offer more nat-

120

ural fuel systems and energy

i.e. a company that is directly

opposed to slowly polluting

the planet.

What needs to be done then,

as far as the oil and gas

industry is concerned, is an

internal audit and inevitable

overhaul of their brand, if they

still seek potential new hires. A

more familial, humane

office culture must be fostered

in response to the hireand-fire

culture to which the

older executives are

accustomed, as well as a

steady flow of incentives for

those who have long

committed to the industry.

That, or up the ante in digital

automation to fulfil the least

difficult of tasks.

121

122

According to an

EY survey

published on

June 2017,

careers in oil and

gas have become

unappealing for

62% of purposeful

22-to-37-year-old

millennials.

123

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As for the long-term effects of

fossil fuels to the ecosystem, it

is paramount that oil and gas

companies either minimize

the destruction their products

bring to nature, or find ways to

transition to more sustainable

and safer alternatives for energy.

Lastly, the industry itself

must modernize their communication

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Should oil and gas companies

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number of new hires among

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and water.

-end-

126

128

Not only do

millennials see

the ecologically

damaging effects

of oil and gas in

this industry, but

also perceive the

political

landscape as

“unstable,

blue-collar,

difficult, and

dangerous”.

129

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Nowadays, only minorities of

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behave ethically and

business leaders are

committed to helping improve.

Today’s oil and gas

organizations were developed

in a time of resource

insufficiency to get at those

difficult to develop resources,

companies built large and

composite organizations with

strong centralized functions.

This kind of model allowed

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132

bility between what millennials

belief, how responsible

businesses should achieve

and businesses’ actual

priorities to be, this is where

counterparts exist.

133

B E S T S T O R I E S O F 2 0 1 9

Tendencies of Millennials

in a Workplace

According to several

experimental

researches,

millennials are

trophy-weaned basement

dwellers or ruthlessly efficient

killing machines, taking down

everything. But unless you

scrutinize the business press

and semi-obscure trade

publications, you may have

missed the news about the

latest trend, the fossil fuel

industry. A handful of articles

have pointed out that the

workforce of the oil industry is

rapidly aging and companies

are having trouble attracting

younger workers into their

folds.

Millennial is not the average

generation. There is a great

deal of variation from one

individual to another within any

generational legion.

Nevertheless, the particular

environment for any

generation affects those

individuals in ways that are

observable as broad

tendencies.

There are reported tendencies

for millennials in the

workplace, millennials and

technology as well as

millennials and culture such as

follows:

1. Those who are born

between 1980 and 1996 have

been called everything from

narcissistic to serial job

hoppers and allegedly killing

industries and even

department stores.

2. When it comes to the

workforce, millennials stand

out as much more mobile

than their older counterparts.

Based on a recent report, 57

percent of teens now see the

fossil fuel industry as bad

for society and 62 percent of

those aged 16 to 19 say

working for oil and gas

companies is disagreeable.

3. Millennials dislike the oil

industry the most, and listing

the oil and gas industry as

their first choice on job

placement. While many

companies are still perplexed

as to what attracts and retains

a millennial worker, there are

clear trends that show what

industries and sectors this age

group is inclining towards and

evading.

134

O I L & G A S

L E A D E R S

Millenials Thoughts toward

Oil and Gas Industries

The coined word “Millennial”

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in particular is often a

centerpiece of various alarms

that currently dominate

discussion about the energy

landscape in the context of

energy transitions. There is

growing concern that public

attitudes toward oil and gas

are waning particularly on

millennials, this contributes

to a workforce shortage that

will compromise the long run

sustainability of the industry.

135

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This discourse often cites an

apparent philosophical

preference for renewable

energies and technologies.

Millennials argue on

entering the oil and gas

industries because they are

concerned about how long the

industry will be around and

they desire to work in

innovative agreeable

energy industries. Millennials

are much more

technologically savvy than

previous generations.

Younger generations have

been immersed in

technology their entire lives,

playing on tablets, laptop

computers and smartphones

and having fingertip access

to information streams in ways

that previous generations did

not. Their depth of

interconnectedness with

technology has created a very

different platform for thinking

about the world.

138

139

140

The coined word

“Millennial” is

usually

considered to

apply to

individuals who

reached

adulthood

around the turn

of the 21st

century.

141

142

C O V E R S T O R Y

Relativeness of Millennial’s

Skills to their Employment

The top growing industries for

millennials switching jobs in

the last year include

technology and software;

healthcare and

pharmaceutical; financial

services and insurance; aero

and auto and transport; and

architecture and engineering.

This growth is contributed to

the fact that millennials are

much more likely to have

strong IT, software and

programming skills than oil

and gas industry, they have

more the desire to use such

modern technologies and software

at work.

Millennials are significantly

more likely to cite a strong

career path and strong

employee development

opportunities as qualities they

144

C O V E R S T O R Y

seek in a job, lending itself to

the most frequently cited

reason by millennials for

leaving a job are lack of

opportunities for career

advancement.

Since technology is generally

seen as a growing, supportive

industry, it makes sense that

many millennials are

attracted to the career

prospects it seems to promise.

If there is any other significant

trait of millennials, they are

defined as political

generation who lean fairly far

to the left. Competition for

millennial candidates in these

industries has gotten a lot

fiercer, and may continue to

become more difficult as time

goes on while technical skills

are always necessary, oil and

gas industry still needs the

younger and newer generation

for their fresh ideas. So, when

it comes to killing the fossil fuel

industry, millenials game on.

-end-

145

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The majority of the world is

now constantly depending on

their smartphones and the

mobile apps that come with

them. In fact, a whopping 25

billion applications have been

downloaded from the Apple

Store in 2015 alone. Most of

these apps are categorized

under fun and entertainment,

but the functionality of mobile

apps are not only limited to

this.

Plenty of applications are now

supporting various industries

to aid in the proper organization

and management of these

businesses. The oil and gas

industry is no exception to

these sectors. As a matter

of fact, this industry’s

investment in mobile apps

and some other mobile

technologies will spike to

approximately $18.7 billion by

2020 as reported by an

American energy research

company.

Here are a few reasons why

investing in mobile technology

is a wise move for the industry.

148

149

B E S T S T O R I E S O F 2 0 1 9

Reasons for Using Mobile Apps in the

Oil and Gas Industry

Collecting Data

The world has

transitioned into

paperless transactions,

but working in the oil

and gas industry meant

needing to write down every

piece of information gathered

in the field. Although this is

usually done by geologists,

field managers, derrick hands,

and other personnel, human

errors are always inevitable.

This is where mobile apps

come into play. The

accuracy of the data is

essential in streamlining the

business. With mobile

applications to aid in the

collection of data,

productivity increases as

personnel can spend more

time in other important tasks

rather than consuming the day

taking down notes.

150

O I L & G A S

L E A D E R S

Gathering

Real-time

Information

Real-time information is one

of the most critical data that

keeps the oil and gas industry

flowing. This includes mud

viscosity and pump rate, to

name a few. Having real-time

information readily available

for supervisors to review helps

streamline processes, which

then produces high-quality

results.

Providing

Location

With mobile apps and

smartphones to pinpoint the

exact location of people and

resources, it will be easier for

the upper management to

assign tasks and organize the

workforce with the best

possible efficiency. Knowing

the location of high-risk areas

will also improve safety for

their personnel

Mobile applications can

gather large amounts of

real-time data that can make

or break the entire production

process.

151

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154

Easing

Collaboration

The oil and gas industry does

not only revolve around a

single person and decision. It

is a collaboration of ideas from

various points of the globe,

especially for companies with

different operations in other

countries. Mobile apps bridge

the gap between the

executives on the other side

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working in the fields. It is

imperative that the right

information reaches the right

person at the right time.

Improving

Decision-

Making

Aside from better collaboration

between superiors and

fieldworkers, mobile apps

also deliver timely information,

thus leading to better decisions

and fewer confusions.

The tasks are organized and

prioritized accordingly, reducing

employee mistakes and

providing a higher return of

investments.

155

156

Mobile apps

bridge the gap

between the

executives on

the other side of

the state to the

personnel

working in

the fields.

157

B E S T S T O R I E S O F 2 0 1 9

Top Nine Must-Download

Oil and Gas Apps

To aid in streamlining

processes within the

organization, these are among

the best apps to download for

the oil and gas personnel.

Oil & Gas News

Being a product of the

Louisiana Oil & Gas

Association, this app

specifically provides residents

at the state of Louisiana with

local and associational news

about the local Haynesville

Shale. However, it also covers

national news for non-

Louisiana individuals.

158

Oyly

Oyly, developed by Roger

Baker at Odd Mob Software,

provides information about

wells such as the amount of

produced oil and other

technical data regarding

reservoir and wellbore.

Oil & Gas

Created by Arrow Engine

Company, Oil & Gas contains

the latest must-know

regarding natural gas and

crude oil prices. It has

updated information and is

easy to access and use.

The Oil & Gas Journal

To reach more people, the

Oil & Gas Journal magazine

developed this app. It has

statistics, global articles, and

note-worthy analysis on the

latest news in the oil and gas

industry.

Riggertalk

Providing users with geographical

locations of companies

and services, Riggertalk

is a definite must-have. Aside

from this, the app also contains

job search sections for

those thinking of venturing into

the oil and gas industry.

Convert Units

Math is vital in the field,

especially in oil and gas.

Covert Units provides an easy

access to the most used

metrics such as speed,

temperature, and volume.

-end-

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162

A critical requirement of any

smart manufacturing initiative

is the ability to seamlessly

communicate data and information

from sensor level all

the way up to the enterprise,

so the right people have the

right information at the right

time in the right format. This

communication has a proven

and pivotal role in lowering

total cost of ownership, while

improving return on investment

and operational equipment

effectiveness; and Rockwell

Automation is at the technological

forefrontof this new

pardadigm.

“We’ve been in business for

115 years,” explains Rockwell

Automation Chairman and

CEO Blake Moret, “and we are

now the world’s largest company

dedicated to industrial

automation and information

solutions. Our primary goal is

to expand human possibility,

by marrying a user’s imagination

with our technology to

help them deliver the very best

possible solutions.”

With the words “smart manufacturing”

on the mind of

every industry executive and

decision-maker, one question

inevitably asked is: Where do

we start? The answer is: At the

machine level, leveraging a

digital transformation to create

smart, connected machines.

163

B E S T S T O R I E S O F 2 0 1 9

The industrial environment today

According to Moret,

there are three major

trends driving today’s

industrial

environment. “The first is the

rise of the middle class in

emerging economies, which

means companies must be

able to compete in these

markets to gain business from

this growing demographic.

“Second is a requirement for

more people who can deal

with new technology:

countering the growing skills

gap. In the U.S. alone, there

are hundreds of thousands

of manufacturing jobs going

unfilled for lack of people with

the right skills and talent. This

is also true around the world.

People are retiring, and it is a

struggle to replace them.

“Finally, of course, is

globalization itself. We all

compete against the very

best in the world, all the time,”

Moret elaborates.

From a technological

standpoint the cost of

connectivity is falling,

delivering a more palatable

price point. This leads to wider

deployment of smart

technologies, which, in turn,

is driving greater

productivity. Hand in hand with

this is the impact of the way

operational data is interpreted

and subsequently deployed,

with, information management

and analytics underpinning

new-found levels of

optimisation.

164

O I L & G A S

L E A D E R S

The path towards

a Connected

Enterprise

Rockwell Automation has a

strategy to make this all

happen. Its Connected

Enterprise approach will help

companies get to market

faster, lower total cost of

ownership, reduce unplanned

downtime, and manage

enterprise risk and

compliance.“Connected

technology is allowing

companies to take real-time

operational data and turn it

into insights that can unlock

another level of opportunity,”

explains Moret. ” When we do

this well, we can make

enterprises more agile and

productive by expanding

human possibility.

”A digital transformation can

transform an industrial

company into a better

industrial company,” Moret

explains. “Indeed, we apply

these concepts in our own

facilities. They’re not as

automation-intensive as many

of our customers’ sites, but the

benefits have been amazing

and they all stem from tackling

the the basics.”

By understanding work

practices and potential

savings, Rockwell Automation

plants have reduced work in

process (WIP), error-proofed

procedures and reduced

rework. “Results like ‘reduced

time to market’ are tangible

and drive sales for us,” Moret

adds. “Each plant starts from

a unique point, with its own

opportunities to add value.”

In Phase 2, the company is

adding data streams from its

supply chains, using the cloud

to complement onsite systems.

“In the end, it doesn’t reduce

the number of people, but

it does change their work,”

Moret adds, “and it provides

insights that we can apply to

our customers.”

165

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Transformation to the digital oilfield

Oil and gas, the Middle East’s

primary industrial sector, has

entered a transformative era

of global competition. This era

is rife with fluctuations, as the

global oil and gas landscape

continues to shift, resulting

in uncertainty for economic

projections. Furthermore, the

implications of today’s industry

extend far beyond the latest

fluctuations in the global price

per barrel of oil.

Oil and gas is arguably the

world’s most asset-intensive

industry, and every additional

wellhead, pump and

compressor raises a

company’s operational

complexity. These, often highly

dispersed production assets,

combined with tightening

environmental regulations and

a shrinking pool of skilled,

in-house expertise, are forcing

oil and gas companies to find

new ways to optimize

production, increase

efficiencies, enhance recovery

and contain costs.

“As with other major

industries, the search for

solutions is leading to a boom

in digital technologies,“ states

Moret. “In the oil and gas

business of tomorrow, data will

be the lifeblood of the digital

oilfield and will be the key

element in any digital

transformation journey in what

is a very cost-competitive

market.”

Today, integrated control and

information solutions –

including smart devices

embedded in wellheads, on

compressors and pump

stations – are yielding a new

wealth of data. Alongside this,

leading oil and gas

companies are taking

advantage of innovations in

industrial Ethernet-based

connectivity and advanced

analytical software to better

leverage the full value of this

asset data to achieve higher

operational performance.

168

Improving O&G

efficiencies

In the oil-and-gas

industry, Rockwell

Automation’s Connected

Production suite – based on

the Connected Enterprise

vision – is a digital

technology that improves

operational efficiencies and

validates the case for a digital

transformation. It connects

multiple, disparate systems

common to this industry, then

cleanses and makes sense of

the data.

“We understand that a

digital transformation in

oil-and-gas is a long journey,

often starting with pilot plants

and limited capital

expenditure, so phased

implementation is an important

aspect of using

ConnectedProduction,” Moret

explains. “The digitaltransformation

journey is

constantly evolving from

assessment to actual

optimisation. It’s not a linear

process. We work with our

partners in the oil-and-gas

industry to assist with

assessments, planning,

technology integration and

early piloting and concepts.

Analysis and visualization

assistance is also provided

to help with understanding.

This takes time but pays off for

operators.”

169

The benefits of convergence

Wireless technology,

visualization software and

other advances now allow oil

and gas companies to access

and monitor assets in real

time, and merge disparate

oilfield data into streams of

actionable information –

anywhere, anytime. As the

benefits from the convergence

of automation,

communications and

information technology

multiply, oil and gas

companies are now truly

heading towards digital

oilfields.

“In addition to providing more

secure connections to the data

— bringing the silos of information

together — our

ConnectedProduction

approach provides a suite of

oil-and-gas applications and

tools that allow managers and

producers to gain operational

insights into their operations,”

says Moret. “This includes

production and operation

workflows, automation of

manual processes and

role-based visualization, so

the right stakeholder sees the

right information based on

that person’s function. It also

connects to advanced analytic

platforms, allowing operations

to gain valuable insights into

the process.”

Intelligent assets – from data to

decision making

While high-integrity data is the

foundation of the digital

transformation journey, data

on its own means nothing. “We

combine and unlock the data

with competent

decision-making to expand

what is possible, helping to

make our customers more

connected, productive,

intelligent and ultimately,

competitive,” says Moret.

A key concept of

ConnectedProduction is the

idea of intelligent assets.

“Intelligent assets are a way to

group together software and

hardware components in the

field and provide automatic

configuration,” Moret elaborates.

“An example would be

a well-pump controller. The

ability to automatically connect

to an asset, give it context and

then automatically generate

dashboards, workflows and

analytics hugely reduces the

number of skill sets needed to

configure that asset. The

historian, visualization and

program are all done

automatically by the system.”

Moret describes how a

customer, through

assessment and analysis, had

developed an array of

manual processes that

involved sending engineers to

the field to collect data from

well pads, before coalescing

the data into spreadsheets for

analysis related to the level of

chemical injection needed to

avoid wax buildup, which impacted

production. While the

analysis was valid, it took time,

170

and the required resources

weren’t always available.

Finally, when the resulting

recommendations were made

to production, it was often too

late to take advantage of the

analysis.

“This same customer

implemented our

ConnectedProduction solution

to gather data from assets,

automatically handing that

data off to advanced analytics,

which provided analysis of

the data and made real-time

recommendations regarding

chemical injection,” Moret

explains. “Based on the

number of wells on a well pad,

the customer is now realizing

half a million dollars a year in

savings.”

Another example of

ConnectedProduction was at

a large producer with a large

installed base of mature and

disparate systems, which were

used for control and safety. as

well as there being many silos

of information across different

systems, they had workforce

issues, too. They didn’t have

the skills sets to maintain all

the systems and limited capital

to upgrade them.

This customer turned to

Rockwell Automation for

services to support a planned

migration over time. “By

implementing our

ConnectedProduction suite,

and taking advantage of

automation solution services,

a standard set of hardware

architectures for each of their

control systems was created,

allowing a phased migration

while still connecting the

existing infrastructure.”

171

B E S T S T O R I E S O F 2 0 1 9

Expanding Human Possibility

Connected people, devices

and systems, advanced

analytics and modern network

architectures are optimizing

processes and results in ways

previously inconceivable. The

business and technology of

industrial automation is

advancing at a remarkable

rate and smart, data-driven

manufacturing aided by digital

manufacturing is driving

automation performance to

new heights.

Today, the industrial

automation industry is significantly

influenced by the need

to achieve improved

operational productivity. “To

accomplish this,

manufacturers are looking for

improved equipment

efficiency, more effective

processes and better informed

– and thus better prepared

– workers. While technology

is the key to achieving all of

these, when we combine the

strengths of technology with

an engaged, enthusiastic and

imaginative workforce,

anything is possible,” Moret

enthuses.

“In a manufacturing

environment we are linking

people, machines and data

across an entire business –

that’s how machine builders

and end users become more

effective and productive. For

machine builders, the focus

is on future-proofing an end

user’s investment. For end

users, it’s about leveraging

new smart, connected

capabilities to be better able

to take advantage of the

innovations to remain

competitive in the global

market.”

These manufacturers’ critical

needs are resulting in

innovations in industrial

platforms, cloud-based and

real-time analytics, secure

remote access, virtualization,

wireless technologies, mobile

apps, connected lighting,

workforce safety and

support… and more. These

developments are supporting

a smart manufacturing

strategy that helps optimize

automation and increase

competitiveness, now and into

the future.

-end-

172

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BIOGRAPHY –

Blake Moret , Chairman

& Chief Executive Officer

Blake Moret is Chairman and CEO of Rockwell Automation, the

world’s largest company singularly focused on industrial

automation and information. As CEO, Blake is dedicated to

delivering the company’s strategy to bring the Connected

Enterprise to life. Under his leadership, Rockwell Automation

integrates control and information to help make industrial

companies and their people more productive and the world

more sustainable. Blake is accelerating the Rockwell

Automation strategy by focusing on understanding customer

needs and their best opportunities for productivity, combining

our technology and domain expertise to deliver positive

business outcomes, and simplifying our customers’ experience.

Joining Rockwell Automation in 1985 as a sales trainee, Blake

has built his career with the company and has held leadership

positions in many areas of the business, including

international assignments in Europe and Canada. In his

previous role, Blake served as Senior Vice President of Control

Products and Solutions, one of the company’s two business

segments. Blake became CEO on July 1, 2016 and was elected

Chairman of the Board effective January 1, 2018. He is

passionate about workforce development and creating a

diverse worldwide team of employees that can and want to do

their best work.

Blake serves on the PTC, Inc. Board of Directors, the Executive

Committee of the National Association of Manufacturers (NAM),

and is a member of the Business Roundtable. He also serves on

the board of the ARMI Advanced Regenerative Medicine

Institute and the Georgia Tech Advisory Board.

Blake is Chairman of the Rockwell Charitable Giving

Corporation and is on the board of the United Way of Greater

Milwaukee and Waukesha, and the Board of Trustees for the

Boys and Girls Club of Greater Milwaukee.

Originally from Atlanta, Georgia, Blake graduated from Georgia

Tech with a bachelor’s degree in mechanical engineering. He

and his wife Cheryl have four children.

174

175

176

ALLEN BRADLEY -

How Tradition Drives a

Pioneering Spirit

A fifteen-year-old tech nerd thinks up and develops a

revolutionary new product. Happens all the time. But this is

different – because we’re talking about the year 1893. The

precocious developer is called Lynde Bradley. At 16, he wins

his first patent for an electrically powered wind vane – and

impresses his family’s doctor with his grasp of technology. The

doctor, Stanton Allen, invests $1000 in the teenager’s fledgling

company and after a few years – and many more successful

inventions – the Allen-Bradley company is born. Allen-Bradley

survived both world wars and the Great Depression to become

a leading global engineering company by the 1980s, when it

was acquired by the equally enterprising Rockwell International

group.

Part of the company’s DNA has always been R&D – finding new

and better ways to do things. In the early days, some of its new

inventions even replaced its own top-selling products, an

approach that some found counter-intuitive. By addressing each

new technological evolution as it emerged, the firm was always

at the forefront of innovation while building on its traditions.

In the same way, Industry 4.0 is an evolution, not a revolution in

the sense of destroying what has been done before.

Manufacturing processes and systems grow organically, adding

new technologies to proven ones and innovation to past

experience.

The secret to being a successful and long-established company

is to leverage expertise and know how to innovate, evolve and

push boundaries further out. Like vines in a world-class

vineyard, the oldest plants have the deepest roots and are

considered to produce the very best wine. Since the days of the

geek kid Lynde Bradley, Rockwell Automation has always aimed

to produce the most pioneering technologies – relying on its

very deep roots.

177

SENSIA

Rockwell Automation and Schlumberger have entered into an

agreement to create a new joint venture, Sensia, the first fully

integrated provider of measurement solutions, domain

expertise, and automation to the oil and gas industry.

The new joint venture entity will combine Rockwell Automation’s

integrated control and information solutions with Schlumberger’s

oil and gas expertise to help customers maximize the value of

their investments.

Sensia’s value lies in the fact that customers can work with a

single source oil and gas automation partner completely and

exclusively focused on oil and gas for measurement, data

collection, and data-connectivity for everything from

optimization to automation.

“Oilfield operators strive to maximize the value of their

investments by safely reducing the time from drilling to

production, optimizing output of conventional and

unconventional wells, and extending well life,” said Moret.

“Currently, no single provider exists that offers the end-to-end

solutions and technology platform that address these

challenges. Sensia will be uniquely positioned to connect

disparate assets and reduce manual processes with secure,

scalable solutions that are integrated into one technology

platform.”

178

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With the depletion of resources

and the simultaneous increase

in demand for oil products, the

oil and gas industry is forced

to re-evaluate using robots in

their operations. Newly

discovered oil fields are

typically located in extreme

conditions, posing a high risk

for the workers.

On the other hand, the

manufacturing industry is

already adopting the use of

robots in dirty, dangerous, and

repeated duties in their

factories. Seeing the success

of automation in the

manufacturing industry alone

inspired the integration of this

technology in the oil and gas

field. Here are some of the top

reasons why the use of robots

is a potential deal breaker in

the industry.

182

183

B E S T S T O R I E S O F 2 0 1 9

Benefits of Robots in the Oil and Gas Industry

Better health and

safety

While safety standards have

dramatically decreased the

number of accidents in the

oil and gas field, there is no

denying that working in oil rigs

is still a highly dangerous job.

Among the primary threats in

the oil rigs are hydrocarbon

releases (HCR), which are

commonly referred to as oil

and gas leaks and mostly

occur during installation.

These unintended releases are

likely to cause fire and

personal injury.

Given this fact, the

importance of robotic systems

in the field is continuously

growing through the years,

especially in surveillance and

inspection works. The current

investment in robotics is a

staggering 15% but is

expected to boom to 28% in

the next five years.

Robots in the oil rigs help in

operation and maintenance,

as well as underwater welding

and remote sensing. This will

significantly reduce the

hazards for the workers in

platforms and ultimately

increase efficiency while

reducing cost.

While safety standards have

dramatically decreased the

number of accidents in the

oil and gas field, there is no

denying that working in oil rigs

is still a highly dangerous job.

Among the primary threats in

the oil rigs are hydrocarbon

releases (HCR), which are

commonly referred to as oil

and gas leaks and mostly

occur during installation.

These unintended releases are

likely to cause fire and

personal injury.

Given this fact, the importance

of robotic systems in the

field is continuously growing

through the years, especially

in surveillance and inspection

works. The current investment

in robotics is a staggering 15%

but is expected to boom to

28% in the next five years.

Robots in the oil rigs help in

operation and maintenance,

as well as underwater welding

and remote sensing. This will

significantly reduce the

hazards for the workers in

platforms and ultimately

increase efficiency while

reducing cost.

184

C O V E R S T O R Y

Innovative Way of Collecting Supplies

Companies are now exploring

the potential of oilfields outside

of the conventional sites. This

is mostly due to the drastic

increase in demand for

petroleum. In fact, it is

predicted that crude oil

demand will hit an all-time

high in 2040 with 111.1 million

barrels/day, as opposed to just

more than 90 million barrels

per day in 2016.

This demand calls for the

addition of autonomous robots

into the equation. With robotic

aid, oil explorations offshore

will be easier and more

convenient, not to mention

safer and less hazardous for

workers. Since most of the

offshore oil supplies are

nestled in places with hostile

weather conditions, deploying

robots instead of humans is

probably the best option.

Types of Robots in the Oil and Gas

Industry

Robots are often comprised of

three primary aspects:

• Brain – the robot’s intelligence

which dictates the

scope of activities the robot

can do independently

• Brawn – the robot’s ability to

carry its physical payload

• Bone – the robot’s physical

appearance, including its

dimensions and weight, which

can vary according to the

purpose of the robot

Here are some of the various

types of robots used in the oil

and gas field.

185

186

Remotely

Operated

Underwater

Vehicles

The remotely operated

underwater vehicles (ROVs)

are mostly used in restoring

and troubleshooting

underwater pipeline problems.

They are basically robots

connected to a vessel through

cables and maneuvered by

the humans aboard.

These ROVs are equipped

with video cameras and

illumination operations, though

some are already deployed

with additional sensors such

as water samplers, still

cameras, light penetration,

and manipulators, to name a

few. Aside from

troubleshooting pipes, they

are now also utilized for ocean

exploration and equipment

installation. Other potential

usages are currently being

explored as well.

Cellular Robotic

Systems

The mobile robot structures

prove to be a useful tool in the

oil and gas industry, especially

in the topside operations, topside

renovation and repair, and

topside inspection and monitoring.

The only downside to

these cellular robotic systems

is that they are required to

endure the cruel environments

and be able to anchor itself in

a stable, robotic manner.

187

188

It is

predicted that

crude oil

demand will hit

an all-time high

in 2040 with 111.1

million barrels/

day, as opposed

to just more than

90 million barrels

per day in 2016.

189

Subsea Robots

While there are numerous oil

and fuel reserves inland, most

of the reserves are located

offshore and beneath the

ocean floor. Reaching these

reserves is a rather

challenging task for the

engineers. Personal safety is

not the only issue here;

environmental insecurities and

weather-associated problems

should also be taken into

consideration.

Therefore, deploying subsea

robots is the most logical

solution to these issues.

Subsea robots, which are

automatic and no longer need

human intervention, can first

be set to survey the area before

any ROVs are deployed.













consideration.



solution to these issues. Subsea

robots, which are automatic

and no longer need human

intervention, can first be set

to survey the area before any

ROVs are deployed.













consideration.



solution to these issues.

Subsea robots, which are

automatic and no longer need

human intervention, can first

be set to survey the area

before any ROVs are

deployed.

-end-

190

building

momentum

192

In an exclusive interview with the Managing Director of BAUER

Kompressoren GCC FZE, Colin Fountain talks to GineersNow

about the latest trends and economic impact of oil & gas across

the globe.

193

Your Innovative Future.

Our Integrated Solutions.

OE 13 ®

breathIng aIr cOmpreSSOr SYStem

› ExcEEds cGA stAndArds

› GAs monitorinG systEm

› dEsiGnEd For oFFsHorE

RIGFORCE

hIgh preSSure aIr & n 2

cOmpreSSOr SYStem

› Air or WAtEr-coolEd

› ExtrEmE EnvironmEnts

› nEGliGiBlE oil cArryovEr

BAUER NGM

StatIOnarY n 2

generatIOn SYStem

› Built For oFFsHorE

› compAct dEsiGn

› rEliABlE n 2 sourcE

SNGII ®

n 2 cOmpreSSOr

& bOOSter SYStem

› dEdicAtEd For Bop

› improvEd sAFEty

› turn-kEy solution

NITROMAX

hIgh vOlume n 2

generatIOn SYStem

› diEsEl drivEn

› contAinErizEd & portABlE

› Fpso liFtABlE

BAUER KOMPRESSOREN GCC FZE,

P.O. Box 261413, Unit # AF07, Jebel Ali Free Zone, Dubai, UAE,

Phone +971-4-886 0259, Fax +971-4-886 0260

www.bauer-kompressoren.de

Question: Tell me about Bauer

Kompressoren

BAUER is German family owned company

having 22 subsidiaries and 15 branch offices

worldwide.

Company’s focus is the manufacturing of high

pressure reciprocating compressors & nitrogen

generators.

I am Managing Director of Bauer

Kompressoren GCC FZE, which is based is

Jebel Ali. From this strategic location, we

provide support to our 32 channel partners in

the GCC region.

We are market leaders for Breathing Air

compressor business in the region but also

very focused on other Industrial Air & Gas

applications.

Q: What benefits are your compressors

designed to bring to the oil and gas

industry?

Bauer Compressors are designed to operate in

harsh conditions with high ambient

temperatures and high humidity.

Space is an important concern on the

platforms. Thanks to our engineering team for

developing compact Nitrogen Generators &

Offshore Breathing Air compressor units.

We are capable to provide ABS / DNV

certification for nitrogen generators. Catering

to the recent requirements, we have developed

196

ATEX units for hazardous area classification.

Q: What are the latest technology trends

and developments around compressors

and compressors equipment?

Our Instrument Air system is all set to deliver

low pressure air without the use of desiccant

dryer. This is the future for low pressure oil free

air requirements, especially for remote

locations where maintenance of desiccant

dryers is difficult.

We use 7 stage mechanical moisture removal

method to avoid the use of Desiccant dryer.

Q: What role does technology and

innovation play in the development of

your products and how do you ensure

you keep up with the latest trends?

Everyone talks about automation today and

Bauer is absolutely on the top of it with latest

PLC control panels used in our compressors.

Our control systems allow you to get

information through message and through

Ethernet using our proprietary app

‘ Bauer Connect’.

In addition, IOT (Internet Of Things) option is

now available on Bauer Products. By IOT, you

can remotely access your compressor, check

the operating parameters, performance

characteristics.

197

1

FIREFIGHTING & H 2 S PROTECTION

4

N 2 GENERATION (DEDICATED FOR BOP)

3

N 2 GENERATION (HIGH VOLUME)

2

MOTION COMPENSATION & RIG TENSIONING

5

N 2 GENERATION (FOR COIL TUBING)

1 2 3 4 5

OE 13 ® RIGFORCE BAUER NGM SNGII ® NITROMAX

BREATHING AIR

COMPRESSOR SYSTEM

› EXCEEDS CGA STANDARDS

› GAS MONITORING SYSTEM

› DESIGNED FOR OFFSHORE

HIGH PRESSURE AIR & N2

COMPRESSOR SYSTEM

› AIR OR WATER-COOLED

› EXTREME ENVIRONMENTS

› NEGLIGIBLE OIL CARRYOVER

STATIONARY N2

GENERATION SYSTEM

› BUILT FOR OFFSHORE

› COMPACT DESIGN

› RELIABLE N 2 SOURCE

N2 COMPRESSOR

& BOOSTER SYSTEM

› DEDICATED FOR BOP

› IMPROVED SAFETY

› TURN-KEY SOLUTION

HIGH VOLUME N2

GENERATION SYSTEM

› DIESEL DRIVEN

› CONTAINERIZED & PORTABLE

› FPSO LIFTABLE

BAUER MNG 2

Mobile On Demand Nitrogen Generation System

DURABLE, HEAVY DUTY TRAILER

MNG 2 is engineered for operation in tough road conditions

typical in the Oil & Gas Industry

SELF-CONTAINED

Has fully integrated diesel driven prime mover and does no

require external utilities for operation

ELIMINATES THE HAZARDS

Eliminates the hazards and injury potential associated with

moving DOT bottles from source to point of use and back

to source

SIGNIFICANT COST REDUCTION

As compared to purchasing merchant gas in filled DOT

bottles or liquid nitrogen tanks

REMOTE DIANOSTICS CAPABLE THROUGH

BAUER CONNECT

www.BauerOilandGas.com

200

Bauer

Compressors

are designed

to operate

in harsh

conditions with

high ambient

temperatures

and high

humidity.

201

Q: What are some of the gaps that need addressing

in terms of product development on the Middle East

market?

Our experience in the market has taught us that even the

Water Cooled Units are not sufficient to work efficiently in the

high temperature conditions in some cases.

Our air conditioned units are helping to overcome this

problem. Containerized units not only prevent the

overheating but prevent from dust and allows easy

maintenance. References are available in Abu Dhabi.

Q: Has the oil price slump affected you and the

market as a whole, and if so in what way?

Absolutely! We have seen slowdown in terms of the

‘number of new enquiries’ and also the conversion rates.

Many of the big projects are on hold, which is delaying the

decision making process.

Positive about it is, companies are buying more spare parts /

service to maintain existing units instead of replacing.

Q: You also said you are looking to focus on mid-stream

oil and gas applications. Could you tell us a little bit

more about that?

When we talk about midstream, we try to cover pipeline services

& LNG transportation.

Pipeline services require nitrogen for pigging, inerting,

dewatering & drying, pressure testing.

We have developed mobile nitrogen generators to support

these services in remote locations.

For high flow high pressure requirements, we can supply trailer

mounted packages and for small duration requirements, we can

offer small trolley mounted nitrogen generators.

For LNG (Liquified Natural Gas) vessels, nitrogen is primarily

used for blanketing and we can offer skid mounted membrane

type nitrogen genertator.

Q: Is there anything else that you would like to add?

We are diversifying in other industries like Plastic Injection

Moulding & Ship building, Gas bottling plants. In the end, I

would say, we will always be a reliable partner in Oil & Gas..

‘Quality is our DNA’

-end-

203

Oil Gas GineersNow Dec2019 fuel chemical drilling exploration offshore onshore petroleum petrochemical refinery upstream downstream energy oilrig

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