BP Adopts Data Analytics to Improve Efficiency

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What is big data, and why is it so important? Well, big data entails applying advanced computer analysis to the overwhelming amount of digital information that is collected and stored in different formats. Organizations have taken the initiative to invest in resources and time to incorporate data into their operations. This is mainly because real time analytics architecture can be analyzed to provide better understanding for better decision-making as well as opening up fresh opportunities for them.

Looking at oil prices, it is evident that they have been plummeting. For that, oil and gas companies have adopted the new data tools whose purpose is to increase efficiency. These data tools are used to help the oil companies manage their resources efficiently and ensure that they cut operational costs. BP is a great illustration of an oil and gas company that has embraced big data in its operations.

Why Embrace Big Data?

Embracing data analytics has helped BP to make quicker and more focused decisions. The company has joined big firms in airline and banking industries in incorporating big data. With BP, big data offers an opportunity to gain more insight into the reservoir activity, making better trading choices, increasing the efficiency in its refineries, and boosting output.

The energy industry is one of the industries that have transformed their operations through cutting costs, minimizing the level of risk, and maximizing on investments. It has done this through including data science in its operations. Once a big company such as BP manages to reduce its operational costs, it can now focus on monitoring the equipment and improving the maintenance activities for optimum efficiency.

The energy industry is also among the industries that have been facing enormous challenges with the major one being the increasing costs of extractions. Other challenges include international politics being full of commotion rendering it difficult for oil companies to explore new fossil reserves, and extract products from them. This is one of the major reasons for BP adopting data science.

A survey conducted by Accenture and Microsoft on oil companies as well as those in the support industries indicated that about 90 percent of the respondents said that the increment in their internet of things, mobile, and data science capabilities could greatly improve the value of their businesses. Oil drilling is a cost intensive activity and is estimated at over $100 million. With data analytics incorporated in its operations, BP can conduct better survey for potential sites and be able to avoid the risk of drilling the wrong places.

BP and its Data Analytics Potential

British Petroleum (BP) is a U.K. based energy company. The company is popular for being among the firms that have integrated information technology in their operations. The need for BP to adopt analytics came because they needed to have access to better information and an improved monitoring to prevent disasters. In 2015, for instance, the company was fined $18 billion under the 2010 Deepwater Horizon Disaster under the Health and Safety ACT and other environmental issues.

In recent years, BP has taken the initiative to invest in monitoring capabilities as well as top quality data. For instance, BP Well Advisor gives all the oil sites operational support and is being used in over 100 of BP’s offshore wells. More so, the company is in partnership with IBM to increase its analytical capabilities. The company also improves its production by building models and analytics that help to boost the efficiency of the refineries. BP has adopted IT and its related disciplines like analytics in almost all the aspects of its operation placing it among the top 50 U.K. data leaders.

BP has invested hundreds of millions in big data. Moreover, the firm is planning a five times increase in its data analytics capacity. They expect to have achieved this by 2020. Improved efficiency is anticipated from this and much more is expected in the future. Adopting analytics has helped BP to improve efficiency especially now when competition is high and oil prices have plummeted.