The impact of industry 4.0 on the oil and gas supply chain

June 25, 2021
The impact of industry 4.0 on the oil and gas supply chain

The emergence of industry 4.0, also known as the Fourth Industrial Revolution, has been having a huge impact throughout the oil and gas supply chain. Across all industries, digital technology has been revolutionising the entire value chain and changing best practices. In the oil and gas sector, advances in seismic imaging and data analysis is helping to streamline manufacturing and production. With the rise of industry 4.0, technology continues to drive transformation, from downstream to upstream and in other business areas including research and development, and finance. Right now, technology is leading the way in the oil and gas sector so read on for further insights on exactly how Industry 4.0 is re-shaping the oil and gas supply chain.

 

Digitalisation of the oil and gas industry

Industry 4.0 has accelerated the rise of smart technology, generating new business areas and re-shaping the traditional supply chain. Increased data integration, analytics and information sharing are allowing companies to provide upstream exploration teams with much more meaningful insights, as well as the ability to adjust production levels in real-time, all of which is based on stored data. With digitisation, there’s huge potential for off-field services and businesses to create a much more efficient and effective supply chain. Many oil and gas companies are already using 4D BIM models that map data to analyse changes in oil and gas levels, which can help identify the quality of resources and their lifespan more accurately. 

 

Changes to production

One of the main benefits of the implementation of industry 4.0 in the oil and gas industry is how it’s paving the way for a seamless production chain. There’s now a wide range of Industry 4.0-era production solutions that are creating cross-organisational collaborations and digital efficiency in the supply chain. For example, one of the most notable uses of industry 4.0 technology in recent years is the digital twin – a virtual representation of a physical object. Digital twin technology allows oil and gas professionals to simulate design assets in real-time, providing powerful insights that maximise productivity while reducing the need to mobilise offshore and inspect the model. BP is one oil and gas company that uses a digital twin system, known as APEX, which creates digital copies of all production processes, optimising process considerably. 

 

An integrated supply chain

There’s no doubt industry 4.0 can play a pivotal role in helping oil and gas companies tackle complex challenges along the supply chain. Technologies such as big data will have a positive impact on midstream activities, which includes storage and transportation. For example, with the use of digital technology, oil and gas companies can equip railcars with detectors and sensors to detect any leaks, and monitor any problems in the pipeline’s infrastructure. These new technologies and processes are creating a much more integrated supply chain, with a closer working relationship between each link in the chain. However, there’s much work still to be done to achieve a completely streamlined and efficient supply chain. Technology company Infosys argues in a published white paper that, “Industry 4.0 must be viewed as an enterprise-wide initiative that meets present and future organisational goals.” Oil and gas companies, then, must ensure they have a strategy in place that implements new technologies to achieve the best results. Industry 4.0 is still very much in its infancy, but as long as companies collaborate in the right way, the supply chain will continue to improve and transform.

 

Are you looking to grow your oil and gas business?

Petroplan is a leading recruitment and workforce solutions agency for the oil and gas industry. Our team of consultants have years of experience in recruiting professionals into energy roles on both a contractual and permanent basis. Our Global IT team has a strong understanding of the oil and gas market and how technology is changing processes and procedures. As a talent and workforce agency, we provide specialised consultancy and we tailor our service to each of our clients. If you would like to know more about how we can assist your recruitment, contact us today to start a conversation.

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The Rise of AI in Recruiting

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One of the primary areas where AI is making a significant impact is in automating the initial stages of candidate evaluation. Traditional resume screening processes can be time-consuming and prone to biases. AI algorithms, on the other hand, can quickly analyze vast datasets, identify relevant skills and experiences, and shortlist candidates based on predefined criteria.

However, job candidates should be mindful of optimizing their resumes for AI screening. Using industry-relevant keywords, emphasizing skills and achievements, and aligning their profiles with specific job requirements can increase the likelihood of passing through AI-driven screening processes.

Enhanced Candidate Matching

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Being comfortable with virtual interviews, maintaining clear and concise communication, and adapting to a more conversational style are essential for candidates navigating AI-driven communication tools. Additionally, understanding the specific technologies used by employers can provide a competitive advantage.

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Engaging in ongoing learning, obtaining relevant certifications, and showcasing practical applications of skills through projects and portfolios can set candidates apart in an AI-driven recruitment landscape. Proving the practical application of skills becomes as important as listing them on a resume.

Mitigating Bias in Hiring

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Candidates can also benefit from understanding how AI systems operate, being proactive in addressing biases, and promoting diversity and inclusion in their professional experiences.

Preparing for AI-Integrated Interviews

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Embracing Lifelong Learning

As AI continues to evolve, so do job requirements. The era of lifelong learning has arrived, and candidates must adopt a growth mindset. Staying updated on industry trends, acquiring new skills, and being adaptable are crucial for sustained career success in an AI-driven job market.

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Building a Personal Brand in the Digital Space

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United Kingdom

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The woman in this picture does not exist. She has never existed. She is simply a calculation, made by a computer, based on millions of data points. The image was built entirely by AI, and the tool is getting more sophisticated every day.

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Candidates should focus on showcasing a well-rounded professional profile, highlighting not only technical skills but also interpersonal abilities, adaptability, and a commitment to continuous learning. This broader perspective enhances the chances of being matched with roles that align with their overall capabilities.

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Being comfortable with virtual interviews, maintaining clear and concise communication, and adapting to a more conversational style are essential for candidates navigating AI-driven communication tools. Additionally, understanding the specific technologies used by employers can provide a competitive advantage.

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Engaging in ongoing learning, obtaining relevant certifications, and showcasing practical applications of skills through projects and portfolios can set candidates apart in an AI-driven recruitment landscape. Proving the practical application of skills becomes as important as listing them on a resume.

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The LNG boom in the U.S. has brought about a wave of economic benefits. These projects contribute significantly to job creation, both directly and indirectly. The construction and operation of LNG export terminals require a skilled workforce, ranging from engineers and technicians to logistics and administrative professionals. Additionally, the growth of associated industries, such as natural gas production, transportation, and equipment manufacturing, amplifies the positive economic impact.

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USA

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Liquid Natural Gas (LNG) has emerged as a critical player in the energy landscape, and the United States has become a focal point for substantial LNG project activity. Understanding what LNG is, the dynamics of the LNG market, and its significance to the American economy is paramount as the nation navigates its energy future.

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Working at Petroplan: In a fast-paced environment, a one-year anniversary comes around quickly.

Valentina Bini is a ball of energy. She sits at the Petroplan conference table, a brightly lit room with large windows looking out over west Houston’s energy corridor, looking like she might jump out of the seat at any moment.

 

“The year has gone by so fast,” she says, looking like the completion of her first twelve months at Petroplan has genuinely surprised her.

“I didn’t think I’d have done so many different things so soon after joining this team.”

Valentina began her recruitment career five years ago, after graduating from UH with a bachelors in psychology.

“It’s been a particularly challenging time for recruiters everywhere,” she says.

“The pandemic dominated so much of the landscape for all of us, and for the customers we serve. It was draining in a lot of ways. Now that period is behind us, there’s this huge swell of energy in the industry, and so much activity going on.”

The statistics back this up. According to government data, overall labor force participation is back to its pre-pandemic forecasted level, and the closely-watched prime-age labor force participation rate is now a shade above pre-pandemic levels. Over the past 12 months, the market has seen a net gain of more than four million jobs, averaging around 350,000 new jobs gained, per month. This has left unemployment at a decades-long low. Filling these jobs represents a huge challenge in such a competitive market, especially in clean energy where skills are in relatively short supply. When asked about her approach to recruiting, Valentina explains that she looks for several key qualities in a candidate. She looks for candidates who have the right skills and experience for the role, as well as a strong work ethic, excellent communication skills, and the ability to work effectively in a team. She also looks for candidates who are passionate about their work and are committed to driving success for themselves and others.

“We have to look beyond the candidates’ hard skills to work out if they’re a genuine fit for the company they’re joining,” she says.  

The daughter of an expat, she spent her childhood in seven different countries, thriving amid the change and the constant exposure to new cultures. She brings this experience into her job.

“Culture is so important, particularly now that so many teams are working remotely and are separated from each other day to day.”

Valentina has adapted to a wide range of recruiting activities in engineering and oil and gas. The variety has clearly made her job quite challenging, but she focuses on the human elements of the recruiting task.

"I enjoy getting to know my clients and candidates on a personal level. It helps me to understand what motivates them and what they're looking for in a role,” she says.

“Valentina has been an asset to our team since she joined us a year ago,” says Craig McConochie, Petroplan’s Country Manager in the US.

“Her dedication to finding the best people, whatever the discipline, has made her hugely successful, and our clients appreciate the results they see.” Outside work, Valentina is an avid cook who loves to experiment with different cuisines. Her parents are Indian and Italian, which has influenced her cooking style. I love trying out new recipes and experimenting with different flavors. Cooking is a creative outlet for me, and I find it very relaxing."

After a few very confident photographs, she leaves as quickly as she arrived, back to the team, and to the open job list.

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Working at Petroplan: In a fast-paced environment, a one-year anniversary comes around quickly.

Valentina Bini is a ball of energy. She sits at the Petroplan conference table, a brightly lit room with large windows looking out over west Houston’s energy corridor, looking like she might jump out of the seat at any moment.

 

“The year has gone by so fast,” she says, looking like the completion of her first twelve months at Petroplan has genuinely surprised her.

“I didn’t think I’d have done so many different things so soon after joining this team.”

Valentina began her recruitment career five years ago, after graduating from UH with a bachelors in psychology.

“It’s been a particularly challenging time for recruiters everywhere,” she says.

“The pandemic dominated so much of the landscape for all of us, and for the customers we serve. It was draining in a lot of ways. Now that period is behind us, there’s this huge swell of energy in the industry, and so much activity going on.”

The statistics back this up. According to government data, overall labor force participation is back to its pre-pandemic forecasted level, and the closely-watched prime-age labor force participation rate is now a shade above pre-pandemic levels. Over the past 12 months, the market has seen a net gain of more than four million jobs, averaging around 350,000 new jobs gained, per month. This has left unemployment at a decades-long low. Filling these jobs represents a huge challenge in such a competitive market, especially in clean energy where skills are in relatively short supply. When asked about her approach to recruiting, Valentina explains that she looks for several key qualities in a candidate. She looks for candidates who have the right skills and experience for the role, as well as a strong work ethic, excellent communication skills, and the ability to work effectively in a team. She also looks for candidates who are passionate about their work and are committed to driving success for themselves and others.

“We have to look beyond the candidates’ hard skills to work out if they’re a genuine fit for the company they’re joining,” she says.  

The daughter of an expat, she spent her childhood in seven different countries, thriving amid the change and the constant exposure to new cultures. She brings this experience into her job.

“Culture is so important, particularly now that so many teams are working remotely and are separated from each other day to day.”

Valentina has adapted to a wide range of recruiting activities in engineering and oil and gas. The variety has clearly made her job quite challenging, but she focuses on the human elements of the recruiting task.

"I enjoy getting to know my clients and candidates on a personal level. It helps me to understand what motivates them and what they're looking for in a role,” she says.

“Valentina has been an asset to our team since she joined us a year ago,” says Craig McConochie, Petroplan’s Country Manager in the US.

“Her dedication to finding the best people, whatever the discipline, has made her hugely successful, and our clients appreciate the results they see.” Outside work, Valentina is an avid cook who loves to experiment with different cuisines. Her parents are Indian and Italian, which has influenced her cooking style. I love trying out new recipes and experimenting with different flavors. Cooking is a creative outlet for me, and I find it very relaxing."

After a few very confident photographs, she leaves as quickly as she arrived, back to the team, and to the open job list.