Modern tech solutions will improve productivity – SAP

A global software solution company, SAP, has called for effective use of modern technology solutions in the oil and gas sector for effective management of the complexities of the sector. In a bid to effectively confront the current challenges besetting the global oil and gas industry, the company specifically called for the consolidation of processes […]

A global software solution company, SAP, has called for effective use of modern technology solutions in the oil and gas sector for effective management of the complexities of the sector.
In a bid to effectively confront the current challenges besetting the global oil and gas industry, the company specifically called for the consolidation of processes within the sector to deliver operational excellence as well as eliminate the inefficiencies bedeviling the system.
Head of Sales, Energy & Natural Resources at SAP Africa, Pedro Guerreiro, in a statement made available to the New Telegraph, said that the oil and gas industry has a rich history of tough fights and volatility which has not stopped it going where the resources are, no matter how wild, deep or challenging the environment.
He, however, said that the tenacity may be floundering in the face of the combined challenges of newfound shale gas reserves in the United States, the slowdown of China’s economy and political instability in several oil-rich areas, particularly around the Middle East and North Africa.
“Ironically, while the consequences on the oil and gas industry include oversupply, huge budget cuts in exploration and production, continued staff layoffs and, in some cases, the total exiting of certain geographies, the gas boom is also plunging gas prices to an all-time low,” he said.
Guerreiro explained that there might yet be breathing room in upstream oil and gas as the industry is shifting from a “produce at all cost” mindset to one that favours producing in context.
He said: “Production management has become a number one priority as companies move from traditional volume growth to squeezing their investments.” According to him, “this approach implies that companies are keen to sweat their assets, better manage inventories, aggregate buying across divisions, increase midstream and downstream investment.”