The Accenture and Microsoft 2016 Upstream Oil and Gas Digital Trends Survey

2016 Upstream Oil and Gas Digital Trends SurveyMarch 2016

Digital technologies are recognized as adding value to upstream oil and gas companies by helping reduce costs, make faster and better decisions and increase workforce productivity

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28%

45%

27%

91% of all respondents are already seeing value from digital today and more than half of all respondents believe digital technologies have added high(36 percent) to significant high value (17 percent).

72% of the respondents believe cost reduction is an important (27%) or the most important (45%) challenge digital can help address.

91% 72%


17%

36%

38%

9%Average or belowSome Low or None


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Business benefits:Top three areas where digital most benefits companiesRespondents indicated the biggest benefit from digital is improved decision making.

Workforce impact:Top three areas where digital most impacts the workforceRespondents said digital’s biggest impact to date on the oil and gas workforce has been increased employee productivity.

56%

46% 40%

45% 25%

59%Faster and betterdecisions

Real-time decision making

Increasedengagement

Better assetmanagement

Improved jobtraining

Increasedproductivity

© Copyright 2016 Accenture. All Rights Reserved. © 2016 Microsoft Corporation. All rights reserved. www.accenture.com/digitalenergytrends


Despite the low oil price environment, the majority of oil and gas companies will continue to invest at least the same amount or more in digital technologies over the next 3-5 years

80% of respondents plan to invest the same amount (30%), more (36%), or significantly more (14%) in digital technologies over the next 3-5 years.

80%

2

Less or don’t know


30%

36%

14%

20%


Digital investment today is focused on mobility and the Internet of Things (IoT) — with analytics and IoT predicted to lead the way over the next 3-5 years

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7

The fastest growth areas are predicted to be in artificial intelligence, robotics/drones, and wearables

Investment in mobile devices looks to be peaking.


Investing Today Investing over the next 3-5 years Top areas of focus over the next 3-5 years

Fastest areas of growthover the next 3-5 years

Mobiledevices

Artificialintelligence

IoT Robotics & drones

CloudBig Data/Analytics

36%38%

44%

36%

57%

31%

38%

30%

13%

28%

16%

23%

Collaboration& social tools

35%

20%

+10%

Wearabletechnology

12%

22%

+15%+7%


To realize the maximum benefits of digital, companies will need to rapidly improve their capabilities, including maturity in analytics

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More than a third (36%) are investing in Big Data and analytics today, but only 13% feel that their company's analytics capabilities are fully mature

Almost two-thirds (66%) have as an objective, to resolve this within three years.

12%

14%

31%

30%

13%

In what timeframe is your company planning on implementing new analytics capabilities?

How mature is the use of analytics within your business?

16%

17%

39%

22%

5%

66%

Other

Longer term priority (beyond 3 years out)

We have no time plan

Medium term priority (2-3 years out)

Short term priority (1-2 years out)

Immediate priority (3-6 months)

Localized We lack both an enterprise wide strategy and process but there are uncoordinated pockets of analytical activity

Novice As yet we lack most of the prerequisites for a serious analytics program

Aspirational Basic capabilities are in place but critical elements are missing to get to an analytical future

Semi-Mature It is not yet embedded in our strategic focus but someareas like human resources and engineering are analytics focused

Full maturity We have an enterprise approach, sponsored by leadership and it drives our approach to the market and our competitors

1%



Oil and gas companies are increasingly leveraging cloud technologies to more rapidly unlock the value of other digital technologies - especially analytics, IoT and mobility

5



Oil and gas companies expect to use more cloud enabled capabilities in the next 3-5 years, especially for analytics, IoT and mobility

Which capabilities do you expect your company will be using the cloud to enable today/over the next 3-5 years?

Today Investing over the next 3-5 years

InfrastructureBig Data/Analytics

IoTMobility Applications as a service

Collaboration

52%

45%

56%

45%49%

41%46%

27%

37%32% 31%

Top areas of focus over the next 3-5 years

+11%

+10%

60%

+8%

Fastest areas of growth over the next 3-5 years



Leading companies are using digital to drive leaner, smarter organizations.Is your company ready to leverage digital to maximize business value?



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Who do we contact for more information about the survey?


At Accenture, please contact:

Rich Holsman Global Energy TechnologyManaging Director

[email protected]

For more information visit: accenture.com/energy

Follow us: @AccentureEnergy. #DigitalEnergy and #AccentureDigital

At Microsoft, please contact:

Randall HoppeIndustry Director – Oil and Gas, Energy and Process Industries

[email protected]

For more information: Microsoft Process Manufacturing Solutions

The “2016 Upstream Oil and Gas Digital Technology Trends Survey,” conducted on behalf of Accenture and Microsoft by PennEnergy Research in partnership with the Oil & Gas Journal, surveyed upstream professionals worldwide.

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