Oil & Gas and Petrochemical Business Picks Up
The first good news comes from the Oil & Gas and Petrochemical market picking up.
The second good news is related to the change of mindset regarding the digital technologies in Oil & Gas and Petrochemical companies.
The combination of this new innovative attitude with a positive context looks very promising for 2017.
Take Advantage of the Market Dichotomy
In 2016 we could already see how the market was getting split between the companies pulling the brakes in all investments, mostly the international oil companies (IOCs) and the other companies reacting far differently leading to a market dichotomy.
On one side the majors continue to suffer with a business model still oriented on giant upstream projects while national oil companies (NOCs) and Independent companies have a far different agenda.
The NOCs balance their numbers between upstream and downstream, they also benefit from all the support of their respective government to maintain investment and local economy.
The Independent companies focus on small or mid-size projects offering opportunities for local monetization, especially with gas.
The picture on the right is extracted from the www.projectsmartexplorer.com data base tracing the 1000 most active projects of the Oil & Gas and Petrochemical industry, upstream, midstream and downstream.
It reports how the Oil & Gas and Petrochemical market is shared in respect with the profile of the operator (IOC, NOC, Independent).
Here is the example of the Digital Control System (DCS) package, but we could have taken any other of the 200 products lines evaluated in each project and we would have got a similar result.
The outcome of this picture is to highlight how the IOC market has shrinked over the last two years to represent less than 25% of the future business opportunities.
For the DCS, as for any other product or system or service, 75% to 80% of the market on the next three to five years will rely on the NOC and Independents.
As a consequences the manufacturers and contractors still focusing on the top 10 major companies will continue to shrink with the IOCs, while the suppliers balancing their activities with NOCs and Independents will be able to growth their activities in 2017 as some already started it in 2016.
Create Collaborative Value with Industrie 4.0
After the steam, the electricity and the computer, the digitalization enters all the facets of our personal and professional life including in the Oil & Gas and Petrochemical industry.
To materialize this fourth industrial revolution the Germans called it “Industrie 4.0“.
But at the difference of Internet of Things (IoT), the Germans did not stop at inventing a new wording, they also described it through methodologies for processes, architecture for technologies and communication protocols for connectivity.
– Go-to-Market Together
– Packaged offer
– Collaborative innovation
– Collaborative R&D
– Local Content Value Proposition
– Claim Resolution
The good news in this New Year 2017 is the positive attitude for most of the key players of the Oil & Gas and Petrochemical to integrate these digitalization concepts to create value along the entire supply chain and rethink the way to work together to cut the costs and develop new solutions on collaborative mode.
For the first time in decades, the competitive advantage in the Oil & Gas and Petrochemical industry does no longer rely on the size but in the agility: agility to detect opportunities, agility to set up right partnerships, agility for developing together, agility to learn from mistakes and capitalize new experiences.
In 2B1st Consulting we are proud to contribute to this fourth industrial revolution and help our clients to:
Play pro-active with www.projectsmartexplorer.com
Play Collaborative with our “Industrie 4.0 Smart Platform”
In this new context, we wish you again a GREAT SUCCESS IN 2017