Uhgugugu

Reducing Risk in Oil and Gas Operations

WHITE PAPER Sponsored by: EMC Ro b ert a B i g li a n i Ma y 2 0 1 3

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IDC ENERGY INSIGHTS OPINION Risk management is an integral part of day-to-day business activities in the energy industry. Oil and gas companies face risks ranging from volatile commodity prices, which are less linked to basic supply and demand but more to global socioeconomic factors, to increased health, safety, and environmental pressures resulting from past and recent major accidents negatively impacting the environment, industry image, and its social lease. However, risks related to asset damage, business interruption, pollution, injuries to people, and damage to properties are intrinsic in normal oil and gas activities. Then there are the additional risks of non-compliance and of major cost overruns for large construction projects so common in today's industry. Consider also the Stuxnet virus and the more recent cyber threats targeting oil and gas companies in the Middle East. These are just a few examples of the serious risks and threats that can impact oil and gas companies. Technology can help mitigate these risks. IN THIS WHITE PAPER This white paper explores the operational risks faced by oil and gas companies in today's business and regulatory environment, and how the right information technology can help mitigate those risks. Operational risk is experienced at the corporate level, but this paper mainly focuses on what impacts everyday well, pipeline, and plant operations. SITUATION OVERVIEW

Unconventional Resources Such as Shale Gas are Making the Industry's Future Even Brighter

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According to the IEA's World Energy Outlook, global energy demand will grow by more than a third over the period to 2035, driven largely by rising living standards in China, India, and the Middle East, which together will account for 60% of that increase. At the...