Price Volatility

Cost of exploration are rise by 27% in a year

In UK number of wells with exploration cost more than 30 has doubled in year.
Oil & Gas legend Centrica has decided to focus its future investments in Norway and north America
water instead of UK.
Increasing operating cost
Worsening Fiscal Terms
Economies of developing and developed countries are declining
Governments are considering or implementing higher taxes, lower incentives for exploration, new
royalty fees and other measures.
In UK currently oil & gas companies are charged at 62% tax .

1
Climate Change Concerns
EU started a drive to reduce Carbon emission by 20% till 2020.
After BP spill environmental concerns are raised all over the world.
In US Additional legislation has imposed on Oil & gas companies which would raised its
requirements for health ,Safety and Environmental concern
Uncertain Energy Policy
It hinders operators ability to plan, invest and respond to supply and demand changes.
2
Competition from new technologies
Access to reserves
Political constraints and competition for
proven reserves
3
Cost containment
Health safety and environment risk
Human capital deficit
New operational challenges
Need to use various application at business as well as
technology on level to compete in market
Dependence on multiple venders for integration.
Process events and alerts are difficult to define,
distribute or subscribe
Knowledge sharing and cross learning are not
happening between the field and corporate centers.

4


Cost of exploration are rise by 27% in a year
In UK number of wells with exploration cost more than 30 has doubled in year.
Oil & Gas legend Centrica has decided to focus its future investments in Norway and north America
water
instead of UK.
Increasing operating cost


Flexibilty:By optimizing their value net their set of customers and vendors these
companies are reducing complexity and cutting operational costs.
In order to reduce cost company
CHALLENGES
SOLUTIONS


Need to use various application at business as well as technology on level to compete in market
Dependence on multiple venders for integration.
Process events and alerts are difficult to define, distribute or subscribe
Knowledge sharing and cross learning are not happening between the field and corporate centers.




On Demand Solution: To respond quickly on change in customer demand, market opportunity or
an external threat.


CHALLENGES
SOLUTIONS


Need of Skilled manpower as in coming 5-10 years


.


CHALLENGES
SOLUTIONS

Asset Optimization
Predictive analysis
Intelligent event processing
Integration and management of Data
Real-time Data Capturing and storage
8
Production down by 38% in 2013 as compared to 2010.
Exploration wells are reducing in 14 in 2011
No any significant discovery in last five years.
Under investment in new techniques in Oil & Gas recovery.
Investment in Oil & gas is reducing to half within 3 years as per
industry survey.
Rig availability and access are critical issues


Effect
Oil major will abandon these low return reserves and will shift
toward to high return fields.
Investment in advance techniques
9
Execution of capital projects

Finding capital to finance growth and making
capital work efficiently
Securing talent ahead of an expected wave of
retirements
Reducing costs
managing the industrys public perception
10