The energy sector is in a state of constant evolution as it navigates changing supply, demand, technology, regulation, customer preferences and other influencing factors. Energy companies are being challenged to adapt quickly into this changing ecosystem. There is evidence that investment is being made in developments as Gartner predicts that global IT spending in the energy and utilities market will reach an estimated $223.7 billion by 2025.

To secure a good ROI for investment in innovation, business leaders need to keep their finger on the pulse of energy sector trends. Three trends making waves in the energy sector are Net Zero, generative AI, algorithmic trading and hydrogen usage. Here’s what to expect from these emerging trends.

Short-term trends in the energy sector

Generative AI

Generative AI has taken the world by storm. This year spending on AI will reach $154 billion and by only 2026 will hit $300bn. Considering how much the energy sector can benefit from data-driven insights, there are industry-specific applications and benefits to the advancement of generative AI.

Up-to-date industry knowledge is essential to success within the energy sector. That often leads to the creation of an overwhelming amount of documentation. Generative AI can act as an advanced chatbot to ease the overwhelm. Whether an employee is looking through a user manual to help them get to grips with a new program or an analyst is looking to identify trends from big datasets, documentation can be processed by generative AI to draw conclusions and give data-based responses to inputs.

One of the leading solutions in the market used by major companies is Dolffia (by NTT DATA). This is a generative AI tool that processes documentation to glean insights without losing the reasoning and accuracy behind document analysis.

As generative AI can handle large unstructured datasets, it can support the more complex processes involved in energy-based businesses, importantly within the area of decarbonization. Generative AI can process the data in documentation and datasets for the optimization of energy in terms of grid management, storage and meeting changing demands. This reduces significantly the waste of limited supplies.

Algorithmic trading

Ensuring profitability in the trading market takes skill as supplies and prices are subject to volatility based on market background. This is true now more than ever with the introduction of a preference for renewable energy which is infamously a harder energy source to predict the supply levels of. With such a volatile energy trading market, suppliers and buyers can benefit from the emerging trend of algorithmic trading. Already some European power markets have identified over 65% of trades as algorithmic.

It’s very similar to the algorithms used on the stock market in a sense that instead of trades being made manually, they are made automatically by programmed computers. This can lead to quicker and better decision-making as reasoning is purely data-driven. It works by the company setting a strategy and defining the parameters such as the outcome they are aiming for and high and low limits for pricing. Then the algorithm uses the given inputs and real-time information to trade on the energy market.

The range of data the algorithm can analyze before making a trading decision increases efficiency, reliability and ultimately profitability. As well as accessing real-time market data, it will automatically consider energy supply and demand forecasts, weather patterns and other fundamental data to make the best possible decision with the given parameters. This creates the capacity to trade on multiple markets, 24/7, without the risk of human error, and with speedy processing to re-calibrate changes so companies can make the most of every opportunity.

Business leaders looking for intelligent tools like the cutting-edge technology behind algorithmic trading would benefit from Vertical Power, NTT DATA’s energy management solution for the short-term electricity market. The vertical and integrative tool provides a view of the entire value chain, from the management of the portfolio of generation and consumption assets to the execution of the settlement and billing processes.

Long-term trends in the energy sector

Net Zero

The task of achieving carbon neutrality within the impending two decades is a complex undertaking that necessitates an intricate blend of strategies.

The initial and most urgent phase in this transformative process involves transitioning from carbon-intensive fuels, including coal and oil, to cleaner, sustainable alternatives. A widespread conversion to natural gas signifies a critical interim measure in the trajectory towards renewables, reducing emissions from existing engines whilst mitigating the requirement for a comprehensive infrastructure redesign.

Moreover, the potential of biogas as a renewable energy source warrants serious consideration. Sourced from plant and animal waste, its compatibility with existing technology and low environmental impact position biogas as a feasible component in the pathway towards carbon neutrality, enabling a smooth transition and optimizing the recycling potential of organic waste.

Augmenting the capacity of renewable energy generation is another key aspect of the decarbonization agenda. However, due to the inherently unpredictable nature of resources like wind and solar power, this strategy necessitates substantial investments in surplus capacity, ensuring full coverage of demand even amid natural resource fluctuations.

Energy storage technologies, specifically batteries, represent a cornerstone in optimizing the efficiency and accessibility of renewable power. By reconciling the mismatch between generation and supply times, batteries contribute to energy grid stability, guaranteeing that clean power is consistently available in a timely and geographically suitable manner, thus reducing energy waste.

Lastly, we focus on the nascent hydrogen economy, which exhibits significant potential as a universally applicable, clean fuel source, particularly for heavy industrial sectors. However, realizing this potential is contingent upon surmounting numerous technical and regulatory hurdles. If leveraged appropriately, hydrogen could emerge as an indispensable component of the solution for attaining our mid-term goals, provided concerted efforts are intensified to render this a practicable reality.

Hydrogen as an energy source

Hydrogen is forging a new path as reports indicate that the global hydrogen market size is expected to reach $2.5 trillion by 2050. While hydrogen has been a useful resource in industrial processes for decades, its application in decarbonization and the transition to renewable energy has been limited due to its logistical challenges of transportation and storage. That is changing and more investment is being made in hydrogen as a power source.

Hydrogen can be stored in the short term to be used as a buffer to meet high demands and low supplies in alignment with environmental impact initiatives as hydrogen can be produced from renewable sources. We are also seeing the introduction of hydrogen-gas turbines which will be applied to the aviation and shipping industries as a transition to environmentally-friendly alternatives for heavy transportation. This follows on from its application in the light transport industry with fuel cells being used in buses and cars.

The role of hydrogen in the energy sector’s efforts to reduce carbon emissions is still being developed so is not yet at maturity. Its full impact is still to be determined. The evolution of hydrogen usage is definitely a trend to keep an eye on.

Seizing trends

The changing environment of the energy sector has created new opportunities for growth for agile energy enterprises that are willing to be ahead of the curve. Generative AI can increase speed and accuracy. Algorithmic trading can stabilize profitability. Hydrogen can ease the transition from relying on fossil fuels to relying on environmentally-friendly energy sources.

As we venture further into 2023 and beyond, one thing is clear: the energy sector’s future will be shaped by technological innovation, sustainable solutions, and those bold enough to ride the wave of these groundbreaking changes. Embrace the transformation – the future of energy is here, and it’s brighter, smarter, and greener than ever.

In an increasingly digitalized market, the oil and gas exploration and production (E&P) industry is facing a significant challenge in how it effectively and efficiently makes use of the massive array of data it has and owns. While other industries have advanced in their digital transformation, the upstream sector continues to work in a similar manner as it operated over 10 years ago, needing to catch up.

What is AnyPlan3D?

In response to the challenge faced by the Upstream industry in its digitalization process, AnyPlan3D has developed innovative solutions to address this vital need. The company has realized that many energy sector companies are investing significant resources in systems that generate a large amount of data, but much of this data ends up not being used or being used ineffectively and inefficiently.

In view of this situation, AnyPlan3D has focused its efforts on identifying the relevant data for business performance, particularly as measured in financial terms. Their objective is to interconnect all relevant systems and gather the pertinent data to improve the decision basis and financial performance of companies. To achieve this, they have developed a synchronization network called SmartNet, which acts as a virtual factory for the Upstream industry. By virtual factory we mean a “smart” data warehouse or lake that utilizes data in its original location, and can therefore apply dynamic analyses of the data, rather than analyses based on static data warehouses.

SmartNet allows for interconnecting and synchronizing all relevant activities within the oil industry, making visible to all levels of decision makers what needs to be done to ensure each activity is scheduled at the appropriate time to minimize activity conflict and for relevant levels of management to intervene in a timely manner. This is crucial to avoid wasting resources or avoid unexpected consequences. Through optimization and rescheduling, conflicts between activities are effectively resolved.

Image 1: The foundational operational processes integrated by AnyPlan3D’s Smart Net.

AnyPlan3D has successfully implemented this approach in collaboration with National Oilwell Varco, involving 200 companies and managing terabytes of synchronized data. Users can interact with SmartNet, make decisions, and publish their plans on the network, while maintaining ownership of their data. This allows for real-time interactive work and avoids the latency that could be present in other data storage approaches.

Additionally, AnyPlan3D uses 3D models for visualization and support of exploration and production industry activities. These digital models represent elements connected to activities in the network and can be utilized to optimize support routes, among other applications.

Integrated Optimization for the Upstream Oil and Gas Industry: The Comprehensive Solution of Anyplan3D

The main business areas applicable to Anyplan3D extend beyond the oil and gas industry, including infrastructure, aviation, and the entire energy sector. However, in the specific case of the upstream oil and gas sector, Anyplan3D focuses on optimizing production with maximum benefit and minimal environmental impact. It offers various planning capabilities in domains such as safety, drilling, helicopter scheduling, personnel on board (POB) operations, supply chain, project planning, and maintenance, adapting to the needs of each company. Anyplan3D makes use of the data that already exist within a company´s various planning systems, by connecting and synchronizing the data from this variety of data sources.

Anyplan3D can be integrated with almost all other technologies and digital systems commonly used in the oil and gas industry, e.g. drilling automation, SAP automation and data, production monitoring and planning including management. Integration can be achieved through services to transfer data between Anyplan3D and other systems in real-time or on a scheduled basis. Anyplan3D can receive raw data and convert it into objects within its network model, allowing data to be effectively connected and utilized in integrated planning.

The integrated planning of Anyplan3D helps upstream oil and gas companies optimize their operations and improve profitability by synchronizing activities and minimizing resource waste. By using SmartNet, Anyplan3D achieves alignment and synchronization of activities, avoiding unnecessary delays. This allows for efficient use of resources and a balanced production flow to achieve target objectives. Anyplan3D offers a unique solution in the upstream industry as it can build customized production lines and synchronize all activities related to maintenance, operations, drilling, and more. Its ability to manage workflow comprehensively and synchronized provides a significant competitive advantage in the pursuit of optimization and improved cost management and profitability for upstream companies.

The Importance of Partnerships in the Transformation of the Oil and Gas Industry

Anyplan3D fully acknowledges the complexity involved in implementing its solution and understands the importance of having expertise to thoroughly comprehend the systems, organization, and market challenges of its clients. For this reason, a strategic collaboration agreement has been established where NTTData actively participates in the implementation of the solution, providing expertise that ensures smooth integration of clients’ systems with Anyplan3D. Additionally, AnyPlan3D plays a key role in the training and change management phase to ensure that users adapt and make the most of the digital adoption tools provided by NTTData. The ultimate goal is to offer an end-to-end solution that fully satisfies the training needs of Operator´s personnel, utilizing tools like MELT (NTT Data’s e-learning platform).

The future of Oil & Gas and next Gen of E&P

In the oil and gas industry, significant investment has been made in digital transformation, resulting in a vast amount of data generation. However, many companies are not yet advancing to the next stage and need experts to help determine which data is relevant and where to focus. Despite having technologies like IoT and consultants offering AI and digital twin solutions, management is puzzled about effectively utilizing all this data for valuable business insights.

AnyPlan3D has a clear vision and with foresight they are incorporating and adapting its solutions to new technologies such as Artificial Intelligence (AI). With 35 years of AI experience, including research programs with prominent Upstream Operators like Equinor and collaboration with leading research institutions, AnyPlan3D aims to offer cutting-edge solutions to boost efficiency and productivity in operations, maintaining a strong focus on data security, reliability, and accuracy.

It is critical for the Upstream industry to utilize the wealth of data it possesses and transform it into information that will help decision makers improve financial and operational performance; and also seek software solutions that can more easily make use of data the industry already own or has access to. Traditional approaches like data lakes or purpose built data warehouses are both expensive to create and maintain, do not provide the dynamic data in a timely manner nor do they significantly contribute to the end result of improved performance. They do however provide an opportunity and market for expensive consultants´ advice with little accountability for outcome. Adopting a distributed responsibility model where original data owners remain in charge until delivery to clients is essential. Data integration under this approach enables precise decision-making and total control over data quality and ownership.

For future companies, finding a solution provider that offers information management based on mesh principles will be key to maximizing data generated in the upstream industry.

In conclusion, through an insightful conversation with Roger Berntsen from Anyplan3D, we explored the advantages and opportunities in the field of integrated planning for upstream oil and gas companies. Berntsen emphasizes the need to effectively leverage industry-generated data and turn it into valuable business insights. He highlights Anyplan3D’s unique approach, based on distributed data ownership and responsibility, allowing companies to retain control and data quality while efficiently interconnecting them. The article emphasizes the crucial role of integrated planning in optimizing operations and improving profitability in the upstream industry. Therefore, the future of the oil and gas industry depends on companies’ ability to intelligently use the data generated and find solutions or partnerships like Anyplan3D.