Opportunities are abound for the Energy sector to expand its boundaries through digitalisation, as industry players are expecting to see a recovery supported by better economic conditions this year. Oil prices have strengthened to above USD 65 per barrel and are expected to remain fluid in the short term, driven by escalating tension in the Middle East and traders’ position to capture opportunities from rapid movements of oil prices.

To support the Energy industry in their digital transformation, TM ONE has recently hosted an open day forum which discussed Digital Transformation within the Malaysian Energy sector. They were exposed to several innovative technologies, such as the Accelerated Artificial Intelligence (AAI) and Smart Helmet. 85% of the participants, representing various organisations, found that the forum was beneficial to them.

The participants noted that they have already embarked on their organisational digital transformation initiatives, and are gearing up their digital transformation in 2018. The remaining 15%, who are still planning their digital transformation in the next few years, noted that operational challenges such as connectivity and infrastructure, data management, cybersecurity and business processes are the reasons why they are taking some time to implement digital transformation in their own organisation.

Half of the organisations that are yet to implement digital transformation consider it to be important and view it as a priority in 2018, while the rest are looking to explore their organisational Digital Transformation within the next 3 years. For these organisations, their technology priorities for the next 6 to 12 months include Mobility (wearables, handled), Data Centre and Cloud services, Smart services (IoT, Sensors, Smart Building), Collaboration and Safety & Security.

Most Energy companies who are leading the way in digital are devising strategies that enable the convergence of IT and digital innovations with operations technology (OT). They continue to invest in systems to handle huge volumes of data in a fast, secure and flexible way. They are looking at harnessing the power of cloud and mobility to create cost-effective, efficient and safer operating environments.

Development in technologies such as Cloud, Social Media and Big Data & Analytics are driving trends that have immense potential for the Energy sector.

Nonetheless, the Energy industry needs to tackle a series of historic and structural inhibitors, which include data security regulations, standardisation of data collection platforms, integrated ecosystem, realignment of corporate culture and employee mindset, digital talent / workforce empowerment and cybersecurity, to unlock the full potential of Digital Transformation.

Digital enablers, from process digitisation to robotics and automation, can help realise this potential by supporting business processes in dynamic ways. Many new technologies and platforms are available for the Energy industry to exploit and enable themselves to move to the forefront of the digital industrial revolution. Digitally-led transformation initiatives are important levers in creating differentiation and help Energy players to remain financially afloat, and relevant, in their region.

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“Time to shake off the rain,” was the key message in Malaysia Energy Services Council President Sharifah Zaida Nurlisha’s opening speech at the 2018 Malaysia Energy Services Exhibition and Conference (MOGSEC) held in Kuala Lumpur from 25-27 September. These were certainly welcome words to delegates from an industry that has been taking shelter for the past four years. In 2018, oil prices have averaged $72 per barrel, up from $54 per barrel in 2017. On the first day of MOGSEC came the news that that Brent oil had reached $81.16 per barrel, its highest level since November 2014.

Sustainable approaches

“As encouraging as it is, we can still expect volatility to continue, given the prevailing external factors such as trade wars and other geopolitical risks,” warned Tan Sri Wan Zulkiflee, president and group chief executive of Petronas. “The business models adopted have to be robust to go through the price cycles which are inherent in our industry,” he said. In addition to price cycles, Wan Zulkiflee pointed to consumer pressure leading to policy shifts such as some Malaysian states banning plastic straws from early 2019.

Petronas announced at the show that it will partner with Time Marine Services to jointly develop a new approach for sludge treatment to recover hydrocarbon onshore. Time Marine Services was pronounced the winner of the third Petronas Technology Challenge, which crowdsources innovative and economic solutions to Energy industry challenges, with a proposal that featured non-toxic and environment-friendly nanotechnology chemicals, capable of liquefying sludge and heavy wax.

Artificial intelligence and IoT

According to GlobalData, Malaysia is leading South-east Asia for the total number of planned and announced Energy projects, yet the continuing industry emphasis on cost management, operational efficiency, and safety was still evident in the MOGSEC exhibition hall. Artificial intelligence, sensors, drones, IoT, and virtual reality headsets were all on display as solutions to maintenance and inventory challenges as well as managing the cost, health and safety, and quality of life for workers based out on remote sites.

On its stand, Siemens was showcasing an AI platform for autonomous equipment health monitoring that provides predictive tools for early warnings along with inventory management in real time. The cloud-based platform links with IoT devices to spot anomalies and recommend corrective action. It enables customers to avoid unplanned downtime and becomes a practical day-to-day tool for assisting asset operations, says Vicknendran Krishna Younee, vice president of digitalisation power services.

Among three solutions being demonstrated on the TM One stand was a digitally-connected smart helmet with audio and video capabilities that can be accessed remotely, detects accidents, and can track, locate, and communicate with individuals. Allowing for collaborative work between on- and off-site teams, the helmets transmit data in real time so that site managers can monitor whether they are actually being worn or carried around in hand. The solution was developed after a series of design thinking sessions with industry partners who cited safety, communication and remote troubleshooting as key concerns said Dr Sharlene Thiagarajah, chief executive officer for TM R&D.

Priorities for MOGSEC in 2018 were ‘catalysing regional growth’ and ‘promoting home-grown solutions’. “It is only when we build and own the technology can we customize it to the local environment,” said Thiagarajah, noting that the team had produced a minimum viable product for the helmet in less than three weeks. The goal now is to expand: “data and digital certainly lowers the barrier of entry, which gives opportunity for us to sell beyond Malaysia,” she said.

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