December 18, 2017 | Written by: Tim Workman and Chris Leonard
Categorized: Cognitive Computing | Oil & Gas
Share this post:
For large organizations, embarking on digital transformations can be challenging during even the best of times. But the severe downturn in commodity prices over the past three years has made transformations for oil & gas (O&G) companies, in particular, more crucial and increasingly complex.
When the need to drive cost savings and increase value creation is contrasted by limited capacity for investment, innovation becomes more important. To thrive in both the current market conditions and the projected future low carbon economy, most O&G companies will need to transform their operating models, their infrastructure, and their people.
To that end, earlier this year, IBM’s Natural Resources Solution Centre in Calgary, Alberta, developed a new engagement model for accelerating innovation programs with regional O&G companies. The center leverages a consortium-based approach to collective solution development.
The Watson for Natural Resources Innovation Program (Watson NR) has since been established in conjunction with key industry partners, and will focus on developing and deploying a portfolio of operational improvement ‘advisors’ based on IBM Watson and supporting technologies such as Maximo, IoT, and blockchain. Each advisor will be engaged to create operational insights for the program partners by using descriptive, predictive, and prescriptive analysis of their operational data.
Plains Midstream Canada (Plains) – the first and anchor client – has recognized the opportunities that Watson NR provides in the acceleration of delivery and operational excellence. The strength of IBM’s data science, combined with the analytical strengths of Watson, will be a unique driver of rapid insights and tangible business intelligence.
Plains, which specializes in the transportation, storage, processing, and marketing solutions for crude oil, natural gas, and natural gas liquids, expects the combination of cognitive technologies to support operational improvements in areas ranging from power consumption management to leak prediction and prevention. These technologies are potential game-changers in the industry.
The Watson for Natural Resources Innovation Program – founded on partnerships like the one IBM has forged with Plains Midstream Canada – will enable collaborative innovation to accelerate transformation in the O&G industry. Increasingly, organizations are embracing and rapidly adopting cognitive technology to deepen and augment human capabilities that will translate data into insights that drive innovation, improve operational efficiencies, and make better capital decisions.
More information can be found at: www.ibm.com/oil-and-gas.