The Connected Refinery – Accenture 2017 Digital Refining Survey

THE
CONNECTED
REFINERY
CRACKING THE CODE:
DIGITAL DISTILLED
2017 DIGITAL REFINING SURVEY

WHAT IS THE
CONNECTED
REFINERY SURVEY?
This is the first Accenture
Digital Refining Research
conducted by PennEnergy
Research on behalf of
Accenture in collaboration with
Solomon Associates.
It is an online survey of more
than 200 refining oil and gas
industry professionals
including engineers, mid-level
and executive management,
business unit heads and staff
and project managers from a
cross-segment of the industry.
It was conducted in March
2017 by PennEnergy
Research in partnership with
the Oil and Gas Journal.
Respondents are subscribers
to PennWell publications.
Copyright © 2017 Accenture. All rights reserved. 2

KEY TRENDS
TREND 1:
NEW DIGITAL TECHNOLOGIES ARE DISRUPTING
INVESTMENT PRIORITIES – helping enable a shift from
reactive solutions to proactive monitoring using big data and
analytics.
TREND 2:
ANALYTICS IS NUMBER ONE FOR PERFORMANCE
FOLLOWED BY CYBERSECURITY – for driving the greatest
impact in terms of operational performance for companies
currently using digital technologies.
TREND 3:
NATIONAL OIL COMPANIES (NOCS) ARE LEADING THE
WAY IN DIGITAL MATURITY – almost a quarter are making
significantly higher levels of investment in this area than a
year ago.
TREND 4:
IT’S NOT “CAN REFINERS AFFORD TO”—IT’S “CAN
THEY AFFORD NOT TO”? – refiners continue to struggle
to understand how digital can drive enough incremental
benefit to offset the initial cost outlay.
TREND 5:
DIGITAL BENEFITS ARE CLEAR - ABILITY TO REALIZE
THEM IS NOT – the unproven business value combined
with lack of clear strategy is slowing down the speed of
uptake in refining.
DIGITAL REFINING -

TREND 1:
NEW DIGITAL TECHNOLOGIES ARE
DISRUPTING INVESTMENT PRIORITIES
AREAS OF INVESTMENT IN THE NEXT 3 YEARS TO IMPROVE
REFINERY EFFICIENCY/PRODUCTIVITY
Maintenance and reliability
Health, safety and environmental compliance
Quality and yield management
Raw material procurement and supply
Capacity expansion
Energy management
Production planning and scheduling
Digital technologies / capability
Logistics and secondary distribution
Don't know
Refiners are investing in
digital (19%), and while not
in the top 3 priorities it is
growing in importance
49%
34%
33%
OTHER:
0.5% TOP PRIORITY,
1.5% 2ND PRIORITY,
0.5% 3RD PRIORITY
PRIORITY
1ST
2ND
3RD
In which of the following areas is your company planning to invest in the next 3 years to improve the
efficiency and productivity of your refinery/refining portfolio? Please rank your top 3 with “1” as top priority.

TREND 1:
DIGITAL INVESTMENT - EXPLAINED
THE REALITY
New digital technologies are disrupting
investment planning and priorities.
ANALYSIS
Digital spending is set to increase driven
by operational cost reduction.
THE OPPORTUNITY
Refiners are recognizing more of the advantages
of digital for their operations. We believe the future
leaders will be those who effectively make the shift
to digital as a standard way of doing business in
their operations including the top 3 priorities
identified. In particular, moving from reactive to
more proactive solutions using big data and
analytics.
5Copyright © 2017 Accenture. All rights reserved.

TREND 2:
ANALYTICS IS NUMBER ONE FOR
PERFORMANCE FOLLOWED BY CYBERSECURITY
Analytics, including
big data, by a large
margin is viewed to
be the number one
digital technology
that will impact
performance.
DIGITAL IMPACT ON OPERATIONS
Analytics,
including
big data
Cyber
security
Mobility Interactivity,
including
social
networking
Cloud Internet
of things
Artificial
intelligence
74%
41%
38%
PRIORITY
1ST
2ND
3RD
If currently using digital technologies, which of the following are driving the greatest impact in terms of the
operational performance for your refining business? Please select your top 3, with “1” signifying the most important.
6
OTHER:
0.5% TOP PRIORITY
1.5% 2ND PRIORITY
0.5% 3RD PRIORITY
Copyright © 2017 Accenture. All rights reserved.

TREND 2:
DIGITAL AND CYBERSECURITY CONCERNS – EXPLAINED
THE REALITY
Analytics is number one for performance
followed by cybersecurity.
ANALYSIS
Along with analytics and mobility, cybersecurity
is seen as one of the top digital technologies
having an impact on operational performance.
THE OPPORTUNITY:
Leading refiners of the future will be those that fully
exploit big data and analytics and in parallel increase
focus on industrial cybersecurity measures, as
companies seek to offset the greater risk of
cyberattack that comes with more connected refinery
operations.
DIGITAL TECHNOLOGIES IMPACTING
OPERATIONAL PERFORMANCE
ANALYTICS
74%
CYBERSECURITY
41%
MOBILITY
38%

MATURITY OF DIGITAL TECHNOLOGIES
said that their digital
technologies were
mature
21%
Only
of IOCs saw their
digital technologies
as mature
14%
A small percentage
of independents
see their digital
operations as mature
4.5%
Of NOCs that
reported,
How mature would you rate use of digital technologies overall within your refining
operation? Not all categories are represented in this graph.
31%
31%
20.7%
40.9%
31.8%
4.5%
35.7%
14.3%
14.3%
8
TREND 3:
NATIONAL OIL COMPANIES ARE LEADING
THE WAY IN DIGITAL MATURITY
NOC Independent IOC
MATURE
SEMI-MATURE
ASPIRATIONAL

THE REALITY
NOCs are leading the way in digital
investment.
TREND 3:
DIGITAL MATURITY– EXPLAINED
ANALYSIS
Most refiners generally consider themselves to have
low levels of digital maturity. However, national oil
companies were significantly higher — almost a quarter
indicated they have been making significantly higher
levels of investment in digital.
THE OPPORTUNITY:
We see that developing new digital skills combined with
an innovative workforce culture is key to help address the
maturity gap for ALL refiners. According to the survey,
NOCs (24%) stated they are currently spending 20% or
more than they were a year ago vs IOCs (12%) in digital
technologies.

PRIORITIES OF DIGITAL TO REFINERS BARRIERS TO ADOPTION OF DIGITAL IN REFINING
Reduction of operational costs
Margin pressures / weak prices
Growth and expansion enablement
Reduction of capital costs
Changes in regulations
Ability to better meet customer demands
Aging workforce / shortage of talent
Concerns regarding efficiency of plant
processes
Product quality
Cybersecurity risk
Threats from competitors / market share loss
Increasing focus on innovation and R&D
Cost
Lack of clear strategy/business case
Data security
Realigning the organization to make the
best use of digital
Process barriers
Lack of internal ownership
Lack of digital skills to realize the value
Managing the deployment of digital technologies
No specific segment investment plans
Digital technology not viewed as mature enough
OTHER:
2.0% TOP PRIORITY
0.5% 3RD PRIORITY
OTHER:
2.5% 3RD PRIORITY
Which business priorities influence the digital investments in your refining
business? Please rank your top 3 with “1” as top priority.
Which barriers, if any, prevent successful adoption of digital
technologies in your organization? Please select all that apply.
49.8%
38.4%
36%
10
PRIORITY
1ST
2ND
3RD
TREND 4:
IT’S NOT “CAN REFINERS AFFORD TO”—
IT’S “CAN THEY AFFORD NOT TO”?
39%
34.5%
31%

TREND 4:
DIGITAL BENEFITS AND COST CONCERNS – EXPLAINED
THE REALITY
It’s not “can refiners afford to”—it’s “can they
afford not to”?
ANALYSIS
Refiners continue to struggle to understand how digital
can drive enough incremental benefit to offset its costs.
THE OPPORTUNITY:
Leading refiners of the future will be those that identify the
link between operational cost reduction and the
contribution digital can make to that. Leaders will focus on
digital at scale and have the vision and belief to push
through to the truly digital enterprise — enabled by their
business strategies rather than relying on proof of
concepts to prove the business case.
However, half of
respondents say biggest
barrier to wider digital
adoption in their business
is cost

TREND 5:
DIGITAL BENEFITS ARE CLEAR –
ABILITY TO REALIZE THEM IS NOT
TOP BENEFITS IN DIGITAL REFINING
More effective plant management
Reduced operational risk
More efficient and predictive maintenance
Real-time refiner and individual process unit optimization
Faster processing times / reduced lead time to market
More efficient turnarounds / shutdowns
Reduced labor cost
More effective health, safety and environmental (HSE) reaction
Reduced energy management costs
WHAT REFINERS BELIEVE
ARE THE TOP 3 BENEFITS
OF DIGITAL TECHNOLOGIES:
However — a significant
number (38%) cited lack
of clear strategy or a
business case as a barrier
to digital adoption (see
slide 10)
Fewer turnarounds / shutdowns (less capital expended)
Improved product quality / right first time
Greater collaboration with other business units / assets /
contractor / partners (ecosystem)
Greater flexibility agility in operations to meet customer needs
(differentiate service)
Reduced work in progress (WIP) inventory
PRIORITY
1ST
2ND
3RD
4TH
5TH
OTHER:
1.5% TOP PRIORITY,
1.5% 2ND PRIORITY,
1.0% 3RD PRIORITY,
1.5% 4TH PRIORITY,
1.0% 5TH PRIORITY
What do you perceive to be the top benefits to your business from the application of digital
technologies in your refining portfolio? Please rank your top 5, with "1" being the most important.
12
63%
60%
54%

TREND 5:
CREATING VALUE FROM DIGITAL – EXPLAINED
THE REALITY
Digital benefits are clear but refiners are
struggling to realize them.
ANALYSIS
Digital offers opportunities for effective plant
management and maintenance. However, in addition
to cost, lack of digital strategy was seen as the
biggest barrier to the adoption of digital in refining.
THE OPPORTUNITY:
The benefits of digital are clear, but an overarching
strategy is needed to reap the rewards they can offer.
Refiners should understand these benefits will not be
realized overnight. The ability to succeed at scale will
require commitment to delivering a multiyear
program.

CONCLUSION:
REFINERS NEED A DIGITAL ENABLEMENT
PLAN AND A DIGITAL VISION
CURRENT
STATE
KEY TAKE-AWAY:
As technology costs decline, and mobile and IoT
solutions become more viable, refiners must move
beyond “pilots” and deploy at scale – to see the benefits
of digital.
A digital enablement plan requires a digital vision embedded
into the business strategy. The benefits of digital can help to:
Realize a
reduction in
operating costs
Increase
throughput and
margins with
existing asset base
Achieve a
fundamental
business
transformation

FROM DIGITAL ENABLEMENT PLAN
TO BUSINESS STRATEGY
01 02
03 04
More strategic digital
planning and investment
will support the main
contributors to margin
optimization: feedstock
management and asset
reliability
Digital enablement
plans should focus on
moving from proof-of-
concepts to scale
quickly to achieve
greater deployment
benefits
Refiners should start
embedding both new
digital skills and
innovation mind-sets
which will help to build
digital maturity
The key is for digital to
not be a separate
strategy, but an
enabling one to help
achieve top quartile
refining performance

JOURNEY TO THE
CONNECTED REFINERY
Digital requires senior
executive leadership and
vision, underpinned by proof
of concepts that quickly lead
to scaled programs focused
on maximizing return on
investment.
Companies need to
drive a culture of
innovation and technology
adoption – a parallel
focus on OT & IT.
Investment in human
capital and development
programs are needed to
promote new, digital
thinking and new ways of
working.
A methodical approach for
developing and/or
industrializing the digital
foundation is needed, including
managing the broader
ecosystem of digital partners.
A comprehensive digital
enablement plan should be
built into business strategy to
lead to digital transformation.

WHO DO WE CONTACT FOR MORE
INFORMATION ABOUT THE SURVEY?
TRACEY COUNTRYMAN
Asset and Operations Services, Managing
Director, Accenture
conducted on behalf of Accenture by
PennEnergy Research in collaboration
with Solomon Associates, surveyed
refinery professionals worldwide.
“THE CONNECTED
REFINERY RESEARCH”
FOLLOW US: @ACCENTUREENERGY.
#DIGITALENERGY AND #ACCENTUREDIGITAL
tracey.m.countryman@accenture.com
17Copyright © 2017 Accenture. All rights reserved. Accenture, its logo, and High performance. Delivered. are trademarks of Accenture.

The Connected Refinery – Accenture 2017 Digital Refining Survey

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie The Connected Refinery – Accenture 2017 Digital Refining Survey

Ähnlich wie The Connected Refinery – Accenture 2017 Digital Refining Survey (20)

Mehr von accenture

Mehr von accenture (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

The Connected Refinery – Accenture 2017 Digital Refining Survey