driving oil & gas innovation and workforce development in...
TRANSCRIPT
Driving Oil & Gas Innovation and Workforce Development in
the Digital Era Bruce Bailie, Digital Officer, Siemens
siemens.com
© Siemens AG 2017. All rights reserved.
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Page 2 17th November 2017
Global Megatrends
Digitalization
• The drivers for the explosive growth
Change and adaptation in the Oil & Gas
Industry
• Changing workforce requirements
• What have we learned from other industries
Siemens response to attracting and retaining
the new skillsets required
Topics
Global Megatrends
The pace and magnitude of change is often
astonishing. And the challenges these changes
bring are transforming the world we live in.
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Globalization
• Global competition is impacting productivity and production
locations.
Urbanization
• In 2050, nearly 70 percent of the global population will be living
in cities (up from 54 percent today).
Demographic change
• By 2050, the global population will have grown from the
current level of 7.3 billion to 9.7 billion – and needs will rise
accordingly. Back in 1950, there were only 2.5 billion people
on the planet.
Climate change
• According to scientists, in the summer of 2015, the Earth’s
atmosphere had the highest CO2 concentration in 800,000
years.
Megatrends – Challenges that are transforming our world
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Megatrends – Challenges that are transforming our world
Digitalization: The Opportunity
By the same token, according to some forecasts,
interconnected industrial assets will create a
multitrillion US $ industry in less than a decade.
Digitalization
In the future, we’ll be living in a world that’s
increasingly interconnected by complex and
heterogeneous systems. By 2020, the amount
of data stored worldwide will have grown to
44 zettabytes. Around 50 billion devices will be
linked online.
Source: IDC, The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things, April 2014; Dave Evans (Cisco): The Internet of Things, How the Next Evolution of the Internet Is Changing Everything, April 2011
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Phase 1
Mechanical Production
Phase 2
Electrification
Phase 3
Automation
Phase 4
Digitalization
Siemens Has Been at the Forefront of The Industrial ‘Evolution’
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Automation Electrification
Digitalization
Siemens has a Track Record with Disruptive Technologies Milestones of a 170-year history
1866
The dynamo makes
electricity part of
everyday life
1816 – 1892
Company founder,
visionary and inventor
1847 Pointer telegraph
lays the foundation
of Siemens as a
global company
1925
Siemens electrifies
the Irish Free State
with a hydroelectric
power plant
1975
Breakthrough of
high-voltage direct
current (HVDC)
transmission
2010
TIA Portal takes
automation a
stage further
2016
MindSphere introduced as the digitalization platform for all industries
2012
Test operation of the
world’s largest rotor for
offshore wind turbines
1983
First magnetic resonance
imaging scanner goes
into operation
1959
SIMATIC makes
Siemens a leader in
automation technology
Werner von Siemens Siemens innovations over the past 170 years
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VR Context
- Walkinside
Building a Digital Core Through Acquisition US$ 10 Billion+ in Software Acquisitions since 2007
Beginning of
production automation;
Siemens receives
patent for SIMATIC.
1958
1995/96
Plant Engineering
& Execution
ETM / XHQ
Innotec
COMOS Berwanger
- OGM
Elan
& Active
RuggedCom
IBS
Preactor Camstar
2008 2008 2009 2011 2012 2013
2014
2016 2017
UGS –
Teamcenter / NX
2007
Perfect Costing Solutions
2012
Kineo
2013
LMS
TESIS
Polarion
CD-adapco Mentor
Graphics
Product Development
& System Engineering
1958
ORSI
2011
Vistagy
Today, Siemens is the second largest
software company in Europe.
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What is Driving the Digitalization Explosion Across All Industries
Applicability to O&G
Predictive Maintenance
Mass Transit Industry Barcelona – Madrid
99.9% availability of trains
Only 1 of 2,300 trips is late
Remote diagnosis facilitates
predictive maintenance
Applicability to O&G
Improved Cycle Time
Automotive Industry Masserati, Turin
30% less development time
Digital production optimizes
plant design and facilitates
manufacturing flexibility
Applicability to O&G
Image Analytics
Health Industry Multiple Locations Worldwide
Enables more patients to be
treated in less time
Installed in 100+ hospitals,
20+ countries, and applied to
10,000+ patients
50% reduction in doctor’s
time for bone reading
Automated image processing
enables faster diagnosis
10% higher accuracy rate
and detection of fractures
Applicability to O&G
Remote Monitoring
Marine Industry Hamburg (Service Center)
3x more cars produced due
to Siemens Manufacturing
Execution System
Reduced cost for operation
and commissioning
Increased availability and
avoidance of unplanned
downtimes
Enables shorter time
to market
Increased availability and
avoidance of unplanned
downtimes
Remote monitoring facilitates
expert center support
40% of all critical systems
monitored in real-time with
expert technical support
Sensor explosion with IoT Secure Connectivity
Integrated PLM from
Concept to Production Advanced Analytics
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But it’s
not all bad …
- 45% Brent crude decline
- 27% Upstream cost index decline
- 18% The differential upstream
operators must make up Supplier cost cuts
Not sustainable
or healthy for industry
30+% > 60 yrs. old Aging workforce
CO2 Tightening emissions
requirements
Competition for technical resources
(e.g. software
engineers) ‘Lower for Longer’
Price horizon
Why Innovation Matters in Oil & Gas The market demands adaptation
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Refineries Tank farms & storage
Downstream
FPSO (Floating, Production, Storage & Offloading)
Subsea Drilling Platforms
Onshore
Upstream
Offshore
LNG (Liquefied Natural Gas)
Midstream
Oil & Gas Pipelines
Siemens Oil & Gas Portfolio
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Change – and Adaptation – in the Oil & Gas Industry
Change – market oriented, demographic and technological – is forcing
transformation in the oil & gas industry.
Digitalization, in particular, has emerged as a powerful antidote to the
‘new normal’. But the new normal requires new skillsets, posing a new
challenge in a world replete with demand for technical resources.
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The Digital Era is Driving New Workforce Requirements
in All Industries
• Data Scientists
• Programmers
• Software Engineers
• Experts in Artificial Intelligence and Robotics
• Tech savvy petroleum, mechanical, electrical
engineers with extensive domain knowledge
• Rapidly evolving technologies
• Highly specialized digital disciplines
• Substantial amount of the O&G industries domain
expertise will soon be retiring
• Time to build or replace domain expertise
Wanted:
+
Constraints:
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Can We Learn From Other Industries?
• Consider the advanced process control in the 80’s
• Or rapid adoption of SAP systems in the
early 90’s
• Both required deep domain knowledge and a
good understanding of new complex technology
• It is the combination that delivers the most value
and also makes the resources so scarce.
• There are similar talent challenges to previous
technology breakthroughs but the pace and
volume is very different, in essence the same
problem but on a much bigger scale
Is it really a new challenge?
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What Did We Learn From History and Other Industries?
• Being a scarce resource and in demand makes
you feel special
• New complex technology thrives in communities
• Find ways to be flexible in “isolation”
• Understand the longer term impact:
• Is the demand project based or temporary
• How will the technology “ease of use” evolve
• Small companies generally respond better to the
required flexibility and therefore …
… what will it take to recruit / retain young
‘denizens of data’ in the oil & gas industry?
From the individual perspective
From the company perspective
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(Continuing operations; in millions
of € except where otherwise stated) Fiscal 2016
Volume
Orders 86,480
Revenue 79,644
Locations
Countries 200
Manufacturing Facilities 289
Employees (in thousands) Sept. 30, 2016
Total (continuing operations) 351
Germany 113
Outside Germany 238
Yes, We’re Big… And Very Old A global powerhouse in engineering solutions with 170 years of experience
Research and Development
Spend €4.7bn
Dedicated personnel 33,000
Industrial businesses and revenue By the numbers: Fiscal 2016
“As a technology provider, we are
developing tomorrow’s solutions for
major markets, like LNG”
Digital
Factory
13%
Healthcare (Separately managed)
17% Building
Technologies
8%
Financial
Services
Process Industries
and Drives
11%
Power
and Gas
20%
Energy
Management
15%
Wind Power and Renewables
7%
Mobility
10%
Power
Generation
Services
% N/A
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1 In fiscal 2016 2 Centers of Knowledge Interchange
€4.7 billion 33,000
7,500 3,500
€ €
9 16
University cooperation –
our knowledge edge
Inventions and patents –
securing our future
Expenditures for R&D in fiscal 2016 R&D employees1
Inventions1 Patent applications
CKI universities2
Principal partner universities
3 Employee figures: Status Sept. 30, 2016
Corporate Technology
1,600 patent experts
7,400 4,800 employees worldwide
software developers
researchers
Our competence center for innovation and
business excellence3
And We Are Still Driving Innovation Siemens R&D and Corporate Technology
Siemens expenditures for research and development
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Cooperate Invest Found
Collaboration with startups Capital volume
€1 billion for five years
Selected innovation fields
Distributed
electrification
Connected
(e-)mobility
Artificial
intelligence
Autonomous
machines Block-chain
applications
In October 2016, Siemens set up a
separate unit to foster disruptive ideas
more vigorously and to accelerate the
development of new technologies.
The unit’s name, next47, plays on the
fact that Siemens was founded in 1847.
We are using next47 to pool our existing
startup activities.
Driving Innovation… Outside the Mother Ship
Next 47: A separately managed unit for startups
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Developing a Digital Core: Build (through Partnerships)
Partners And many
more…
Systems
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Attracting and Retaining the New Skillsets Required To effectively navigate the new normal
Being big doesn’t mean you have to be behind.
Attracting and retaining the right workforce to drive
innovation in oil & gas and other verticals is achievable
– even for a 170-year old Bavarian behemoth.
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And by the Way, We Have A Certain Reputation…
Any interested job applicants in the audience?
Siemens Ranked #1 on Forbes
Global 2000: Top Regarded
Company List, FY 2017
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The Rampant Pace of Change in World is Driving
Transformation on a Massive Scale
The Oil & Gas Industry is Adapting to a New Normal
Digital Adoption is Key to Remaining Competitive
Although Challenging, Driving Innovation and
Building a Tech Savvy Workforce in the Digital Era is
Possible – Even for a 170 year-old Company
In Summary…