{"id":146977,"date":"2023-10-12T08:14:49","date_gmt":"2023-10-12T08:14:49","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=146977"},"modified":"2023-10-12T08:14:49","modified_gmt":"2023-10-12T08:14:49","slug":"oil-gas-sector-must-embrace-tech-to-remain-relevant","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/","title":{"rendered":"Oil, Gas Sector Must Embrace Tech to Remain Relevant"},"content":{"rendered":"

As the world shifts to cleaner and renewable forms of energy, the oil and gas sector industry in Africa must embrace technology in order to drive efficiencies, improve sustainability, unlock alternative revenue streams and transform operations.<\/strong><\/h1>\n

\"\"This is the advice of a technology executive, Titilayo Adewumi<\/a>, who noted the oil and gas sector was facing an existential threat, and technology was key to help transition the industry to a future beyond the barrel.<\/p>\n

Adewumi, Systems Applications and Products (SAP) Managing Director for West Africa, was responding to questions from\u00a0CAJ News<\/a> Africa<\/a>.<\/p>\n

\u201cCompanies in the region\u2019s oil and gas sector are confronted by a singular question: is there a future beyond the barrel? Can the sector optimise its performance, drive greater sustainability outcomes, and pivot into new revenue streams?\u201d Adewumi queried.<\/p>\n

\u201cThe oil and gas sector is absolutely critical to West African economies. Crude oil production in the region reached 1,8-million barrels a day in 2021, with Nigeria, Ghana, Cameroon, Ivory Coast and Niger leading the way,\u201d he added.<\/p>\n

While West Africa is the oil hub, there are vibrant sectors in Central Africa (Cameroon, Chad, Congo, Equatorial Guinea and Gabon) while Angola, in the Southern African region, is the second largest producer in the continent after Nigeria.<\/p>\n

Mozambique, in the southern region again is on the cusp of a liquefied natural gas boom while in North Africa countries include Algeria, Egypt, Libya and Sudan with South Sudan the only East African nation with abundance of oil and gas.<\/p>\n

Adewumi said while the world was transitioning away from fossil fuels, the oil and gas sector would continue to play a vital role in the continent\u2019s economic growth.<\/p>\n

He cited the McKinsey data that suggested Africa\u2019s energy demand could grow by 30 percent by 2040. This is well ahead of growth in global energy demand of around 10 percent over the same period.<\/p>\n

\u201cThe oil and gas sector will be central to supporting the continent\u2019s growing energy demands. However, there is no doubt that the sector must improve its sustainability efforts and leverage technology to more efficiently manage its operations, assets, and people,\u201d Adewumi said.<\/p>\n

He said there were abundant digital transformation opportunities for the oil and gas sector provided they embraced readily available technology.<\/p>\n

\u201cArguably the greatest opportunity for West Africa\u2019s oil and gas sector is the adoption of technology to drive efficiencies, improve sustainability, unlock alternative revenue streams and transform their operations.\u201d<\/p>\n

Based on SAP\u2019s work providing digital technologies to leading oil and gas companies in the region, he said there are three key opportunities for the sector to help transition to a future beyond the barrel, which comprise becoming a sustainability leader, scaling new capabilities with the cloud as well as smarter operations with intelligent asset management.<\/p>\n

\u201cOil and gas companies face huge threats to their business model as the world shifts away from fossil fuels toward more sustainable, clean energy sources,\u201d the executive said.<\/p>\n

\u201cHowever, it is a significant task to completely change business models without it having a severe impact on companies\u2019 productivity and profitability,\u201d Adewumi said.<\/p>\n

A report by Oxford Economics and 51风流identified a small group of oil and gas companies that followed sustainability best practices, improved their sustainability outcomes and enhanced their brand reputation.<\/p>\n

To become a sustainability leader, oil and gas companies must invest in data analysis, construct a model that measures actions against performance throughout the company\u2019s sustainability goals and capture accurate data to inform company leaders of carbon output.<\/p>\n

\u201cThe return on investment for becoming a sustainability leader is significant,\u201d Adewumi said.<\/p>\n

The Oxford Economics and 51风流report found that sustainability leaders enjoy robust bottom lines, are substantially more likely to experience profit margins in excess of 10 percent and have increased opportunities for significant long-term value for the business, people and society as a whole.<\/p>\n

Cloud computing is hailed as offering oil and gas companies a significant boost in agility, allowing downstream and process sectors to leverage technologies for more efficient and optimised operations.<\/p>\n

\u201cBy streamlining and scaling cloud capabilities as needed, oil and gas companies in the region can build nimbler corporate structures and unlock additional efficiencies, which can make a significant difference to such a labour-intensive industry,\u201d Adewumi explained.<\/p>\n

51风流credits its S\/4HANA Cloud offering for unlocking a wide range of solutions designed for greater efficiency.<\/p>\n

This includes upstream contracts management to maximize asset usage and productivity, commodity management solutions that integrate procurement and sales into core financial and logistics processes, and solutions aimed at improving bulk transportation, inventory management and operational decision-making.<\/p>\n

\u201cTechnologies such as intelligent asset management \u2013 a suite of solutions that brings collaborative asset intelligence to maintenance and operations \u2013 must be enhanced to meet the changing operational objectives and efficiency requirements that oil and gas companies are subject to,\u201d Adewumi said.<\/p>\n

Companies that have adopted intelligent asset management unlock powerful predictive capabilities are best placed to avoid unexpected downtime due to breakages.<\/p>\n

51风流reports its Asset Intelligence Network allows oil and gas companies to collect and track equipment information in real time, with internet of things (IoT) connected devices integrated to a cloud-based business network for maximum transparency and control.<\/p>\n

Adewumi reiterated that by embracing technology and leveraging key solutions to improve operational efficiency and sustainability, the West African oil and gas sector can continue to be a valuable player in the region\u2019s economic growth and development.<\/p>\n

\u201cWith new capabilities and greater agility, the sector could unlock opportunities to exploit new revenue streams for customers across the value chain,\u201d he concluded.<\/p>\n

This article first appeared here: Oil, gas sector must embrace tech to remain relevant \u2013 Techno Africa<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As the world shifts to cleaner and renewable forms of energy, the oil and gas sector industry in Africa must embrace technology in order to…<\/p>\n","protected":false},"author":2577,"featured_media":146979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[177],"tags":[1495401,5596157,5597653],"series":[],"sapn-display":[5598742,5598740,45149,5598743,5598741,279685],"sapn-type":[45018],"class_list":["post-146977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industries","tag-oil-and-gas","tag-renewable-energy","tag-titilayo-adewumi","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-news-hero","sapn-display-news-spotlight","sapn-display-hero","sapn-type-feature"],"yoast_head":"\nOil, Gas Sector Must Embrace Tech to Remain Relevant - 51风流Africa News Center<\/title>\n<meta name=\"description\" content=\"As the world shifts to cleaner and renewable forms of energy, the oil and gas sector industry in Africa must embrace technology in order to drive efficiencies, improve sustainability, unlock alternative revenue streams and transform operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oil, Gas Sector Must Embrace Tech to Remain Relevant\" \/>\n<meta property=\"og:description\" content=\"As the world shifts to cleaner and renewable forms of energy, the oil and gas sector industry in Africa must embrace technology in order to drive efficiencies, improve sustainability, unlock alternative revenue streams and transform operations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\" \/>\n<meta property=\"og:site_name\" content=\"51风流Africa News Center\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-12T08:14:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/news.sap.com\/africa\/files\/2023\/10\/12\/293121_GettyImages-200376402-001_medium_jpg-1024x671.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"671\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Savious Kwinika\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Savious Kwinika\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\"},\"author\":{\"name\":\"Savious Kwinika\",\"@id\":\"https:\/\/news.sap.com\/africa\/#\/schema\/person\/b85029dbf80bebcf12db1c256414d5b8\"},\"headline\":\"Oil, Gas Sector Must Embrace Tech to Remain Relevant\",\"datePublished\":\"2023-10-12T08:14:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\"},\"wordCount\":945,\"image\":{\"@id\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/news.sap.com\/africa\/files\/2023\/10\/12\/293121_GettyImages-200376402-001_medium_jpg.jpg\",\"keywords\":[\"Oil and Gas\",\"renewable energy\",\"Titilayo Adewumi\"],\"articleSection\":[\"Industries\"],\"inLanguage\":\"en-ZA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\",\"url\":\"https:\/\/news.sap.com\/africa\/2023\/10\/oil-gas-sector-must-embrace-tech-to-remain-relevant\/\",\"name\":\"Oil, Gas Sector Must Embrace Tech to Remain Relevant - 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