In one of the biggest outsourcing deals in the last five years Royal Dutch Shell partnered with EDS, T-Systems and AT&T giving Shell greater ability to respond to the growing demands of their businesses. It allows Shell IT to focus on Information Technology that drives competitive position in the oil & gas market, whilst suppliers focus on improving essential IT capability.
Could this be the future trend in the oil industry? Keeping in mind the oil & gas industry has few competitors Shell could perhaps enjoy first mover advantages. As noted elsewhere in the blog, typically in the oil industry companies spend 1% of their total revenue on IT, how much are they really saving? Shell also promises few layoffs but will spread their current IT force throughout the companies in the partnership.
http://www.eweek.com/c/a/Outsourcing/Shell-Outsourcing-3000-IT-Jobs/
Tuesday, April 22, 2008
How Big Oil Uses XML
It is interesting to note that integration of legacy systems and the new systems is a challenge to almost all industries including the pharmaceutical and financial services sector. The oil industry has approached it by suggesting standardization across the industry and getting all of the parties to play at the same table, oil companies will be able to spend less time on integration and more time on developing oil and gas.
The reality is, data has to be moved between multiple applications and multiple vendors, and because there is no standard, a good amount of money and effort is spent making custom linkages between those applications.
The big question still remains whether the savings will translate to consumers paying less for gas at the pump. This will likely confirm the theory that the oil industry is run like a cartel.........they are guilty of colluding with each other to set standards including prices.
http://www.baselinemag.com/c/a/Projects-Security/How-Big-Oil-Uses-XML/
The reality is, data has to be moved between multiple applications and multiple vendors, and because there is no standard, a good amount of money and effort is spent making custom linkages between those applications.
The big question still remains whether the savings will translate to consumers paying less for gas at the pump. This will likely confirm the theory that the oil industry is run like a cartel.........they are guilty of colluding with each other to set standards including prices.
http://www.baselinemag.com/c/a/Projects-Security/How-Big-Oil-Uses-XML/
Sunday, April 20, 2008
RFID policy panel raises privacy concerns
Beware if you have your info ingrained in your Speedpass or the contactless major credit cards. It is easily accessible by anyone with an RFID tag reader. RFID labels don't check readers for authentication, so identity thieves could set up their own readers that impersonate legitimate ones. Like anyother technology the hackers and thieves are sitting waiting patiently to exploit the weakness that comes packaged as a convinience. BEWARE!!!!!!
http://www.infoworld.com/article/05/04/06/HNrfidprivacy_1.html
http://www.infoworld.com/article/05/04/06/HNrfidprivacy_1.html
Exxon Mobil: Focus on Flexibility
Exxon Mobils's ultimate payoff from standardization isn’t just cost savings from achieving economies of scale but, also from the efficiencies made possible by adopting consistent platforms and business processes add flexibility to the business by allowing rapid movement into new markets. Exxon Mobil is also able to adjust workloads among offices worldwidewhich offers the company a competitive advantage.
However, with a profit of 20-40 billion since 2006 Exxon has the ability to add flexibility to its IT and can move away from it's fixation of standardization. Exxon Mobil does support the use of leading-edge, best-of-breed technology when the business value is high and the technology can be narrowly deployed. It is a constant balance you have between sustaining these standards that give you the flexibilities and economies of scale also being responsive to the needs of the different business lines. This has been one of the reasons Exxon Mobil has continued to be the industry leader.
What is interesting is the fact that most companies in the oil industry invest 1% of their total revenue in supporting IT. A small value compared to other industries that are up to 6-8%.
http://www.computerworld.com/mobiletopics/mobile/story/0,10801,69187,00.html
However, with a profit of 20-40 billion since 2006 Exxon has the ability to add flexibility to its IT and can move away from it's fixation of standardization. Exxon Mobil does support the use of leading-edge, best-of-breed technology when the business value is high and the technology can be narrowly deployed. It is a constant balance you have between sustaining these standards that give you the flexibilities and economies of scale also being responsive to the needs of the different business lines. This has been one of the reasons Exxon Mobil has continued to be the industry leader.
What is interesting is the fact that most companies in the oil industry invest 1% of their total revenue in supporting IT. A small value compared to other industries that are up to 6-8%.
http://www.computerworld.com/mobiletopics/mobile/story/0,10801,69187,00.html
Exxon Mobil Plans to Extend Use of Speedpass Technology
Exxon Mobil Corp. said it plans to keep its focus on extending the reach and utility of its own, simpler Speedpass technology. The Speedpass offers a retailer a very efficient way to handle cashless payments, in a very secure and very privacy-sensitive manner. Speedpass has also started to diversify the kind of wireless tokens it uses beyond the radio frequency identification key-ring tags. Other devices that could eventually sport Speedpass modules include cell phones and personal digital assistants.
This offers a personalized way to communicate with customers compared to other softwares that communicate with the vehicle itself such as the DSRC systems.
http://www.computerworld.com/mobiletopics/mobile/story/0,10801,69187,00.html
This offers a personalized way to communicate with customers compared to other softwares that communicate with the vehicle itself such as the DSRC systems.
http://www.computerworld.com/mobiletopics/mobile/story/0,10801,69187,00.html
Wednesday, March 5, 2008
Microsoft Unveils Road Map for Oil and Gas Industry
Microsoft has been a partner with other oil- and gas-focused IT companies to supply innovative solutions since 2005. The idea is not only to help make today's challenges easier, but to help enable the industry to reach its growth and profitability potential efficiently and safely.
Microsoft continues to look for opportunities for growth in each and every sectors for growth. Since Microsoft is a well known behemoth in its own right it can set the IT standards and efficiently revolutionalize the oil industry. The efficiency could hopefully translate to savings by the consumer who is looking to save.
It is has been suggested by some analysts that the reason gas prices are continuously rising is not only the cost of crude oil but also due to inefficiencies in the industry itself.
http://www.hpcwire.com/hpc/388603.html
Microsoft Unveils Road Map for Oil and Gas Industry
With a focus on Microsoft .NET as the foundational methodology, Microsoft's worldwide oil and gas industry unit has teamed with dozens of leading industry vendors to unveil a portfolio of Microsoft-based solutions that will create a strong and interconnected IT infrastructure to help oil and gas companies reach peak performance. This portfolio is designed to help companies meet and beat the future's supply and demand, regulatory and cost challenges -- and eventually realize the benefits of innovations that may render unplanned operational shutdowns across all industry sectors a thing of the past."Nothing short of peak performance will do in today's dynamic oil and gas marketplace," said Marise Mikulis, worldwide oil and gas industry manager at Microsoft. "And peak performance has never been more challenging to achieve. At Microsoft, we are working with some of the industry's best providers to develop and implement solutions that help companies achieve better business performance through accelerated insight and innovation."Oil and gas companies today already have the ability to monitor rigs remotely, collaborate cross-company and across the world, and diagnose potential refinery equipment problems before they happen. Now enabled by .NET -- a set of software technologies connecting information, people, systems and devices via comprehensive support for IT industry-standard XML -- Microsoft-based solutions should move industry efficiency and effectiveness to the next level.Ability to Achieve Peak PerformanceAccording to Rick Nicholson, vice president for Energy Insights, an IDC company, "Despite currently high commodity prices, oil and gas companies continue to face significant business challenges such as the difficulty in finding new supply sources, an aging work force and increasingly complex regulatory compliance. Our research shows that high-performing companies are not necessarily those that spend the most on information technology, but are those that do the best job of aligning technology investments with business objectives."To ensure that its solutions have a planned road map and align with customers' business objectives, Microsoft invests more than $6 billion annually in research and development, enabling the world's oil and gas companies to better seize opportunities, improve predictability and compete under dynamic market conditions through the innovative use of technology. Each Microsoft-based solution is cost-effective and built using widely accepted IT standards that leverage existing IT assets. These offerings integrate the enterprise today while establishing the foundation to be compatible with next-generation innovation."The pressure's on for oil and gas companies to improve upstream and downstream business performance in the near term. Solutions grounded in .NET and supporting XML industry standards are imperative to deliver the integration, collaboration and knowledge management their businesses require," Mikulis said. "Our vision is to offer companies the insights they need across the full business federation -- from field production to refining feedstock including such complexities as delivery profiles, inventory in transit and variable contract obligations. This is the kind of innovative use of technology we're working on with our partners and customers."Microsoft's solutions portfolio focuses on four critical areas for the oil and gas industry:
Capital project execution. Using Project Intelligence tools and methods, companies have the ability to execute projects more reliably through timely and accurate project risk management and earlier time to first operation. They can also help decrease direct costs through better asset utilization, improved project management and reduced labor costs. These solutions are jointly delivered with Accenture, The Project Group Inc. and others.
Upstream portfolio management. By using technology to create a collaborative environment to improve decision and workflow quality across the oil and gas reservoir life cycle -- thus achieving Oilfield Connectivity -- firms can optimize production, reduce finding and lifting costs, and better address reserves replacement. Primary partners include OSIsoft Inc. and Schlumberger Information Solutions (SIS).
Downstream operational efficiency. Using tools and solutions to achieve superior operational and refining performance, smarter retail operations, and effective supply chain optimization can also help those in the downstream sector increase revenue by growing market share, improving asset performance and managing fuel prices. Companies can decrease costs by improving work-force performance and reducing operating and overhead costs. ABB, Aspen Technology Inc., OSIsoft, and SAT Corp. are some of the strategic partners in this area.
Health, safety and environmental (HSE) excellence. Today's hardware and software can improve monitoring, tracking and reporting to help minimize health, safety and environmental concerns and decrease regulatory compliance costs. Better training and risk management processes improve security, reduce waste and emissions, and decrease injuries, which contribute directly to the bottom line. These solutions are jointly delivered with Accenture, Meridio and Software Architects, among others. Research by Cynthia Moore, research vice president at Gartner Inc., highlights that business optimization of existing energy assets and infrastructure is a top business issue for oil and gas organizations in 2005. "Indeed, business optimization is on a par with management focus on environmental regulations and issues, and is linked to IT investments in other areas for oil and gas enterprises such as asset management and remote access technologies that ultimately can lower operational costs and increase productivity/profitability at the enterprise level," Moore said.Focus on Partners for Best SolutionsTo help complete and deliver these solutions, Microsoft continues to partner with other oil- and gas-focused IT companies to supply innovative solutions, not only to help make today's challenges easier, but to help enable the industry to reach its growth and profitability potential efficiently and safely."With Microsoft tools and technology, the development cycle for our products is significantly reduced, which accelerates our time to market," said Blair Wheeler, senior vice president of marketing for Aspen Technology, a Microsoft partner in downstream and upstream. "By building our systems on a Microsoft platform, our customers can easily connect users across their global operations in a simplified way, using the same technology they're used to using on a day-to-day basis.""We aim to revolutionize the way exploration and production companies approach decision-making. With the delivery of our unified seismic-to-simulation solution, which breaks down previous barriers to knowledge-sharing across technical domains, our customers are already realizing tangible business benefits. We see the convergence of technical and business applications as a critical next step toward a more efficient decision-making process," said Tim White, vice president of Microsoft upstream partner Schlumberger Information Solutions (SIS). "We rely on Microsoft's multi-industry expertise to provide a common development framework and standard technology platform with growth potential that we can readily deploy anywhere in the world -- which makes these kinds of solutions possible."2005 Global Energy Forum Focuses on Accelerating Insight and InnovationThe 2005 Global Energy Forum, hosted today in Houston by Microsoft, will feature keynote addresses by Joseph Bryant, president and COO for Unocal Corp., and International Energy Agency Analyst Amos Bromhead. In addition, Microsoft will launch its road map for all aspects of the oil and gas industry, and host breakout sessions covering compelling industry issues and featuring leading-industry vendors and end users. Registered guests include more than 300 executives and business and IT leaders from a variety of international oil, gas and oilfield services firms."As Steve Ballmer summed up at CERAWeek recently, 'our lifeblood is innovation,' and we are committed, with our partners, to help this industry better seize opportunities, improve predictability and compete under dynamic market conditions through the innovative use of technology," Mikulis said.
Microsoft continues to look for opportunities for growth in each and every sectors for growth. Since Microsoft is a well known behemoth in its own right it can set the IT standards and efficiently revolutionalize the oil industry. The efficiency could hopefully translate to savings by the consumer who is looking to save.
It is has been suggested by some analysts that the reason gas prices are continuously rising is not only the cost of crude oil but also due to inefficiencies in the industry itself.
http://www.hpcwire.com/hpc/388603.html
Microsoft Unveils Road Map for Oil and Gas Industry
With a focus on Microsoft .NET as the foundational methodology, Microsoft's worldwide oil and gas industry unit has teamed with dozens of leading industry vendors to unveil a portfolio of Microsoft-based solutions that will create a strong and interconnected IT infrastructure to help oil and gas companies reach peak performance. This portfolio is designed to help companies meet and beat the future's supply and demand, regulatory and cost challenges -- and eventually realize the benefits of innovations that may render unplanned operational shutdowns across all industry sectors a thing of the past."Nothing short of peak performance will do in today's dynamic oil and gas marketplace," said Marise Mikulis, worldwide oil and gas industry manager at Microsoft. "And peak performance has never been more challenging to achieve. At Microsoft, we are working with some of the industry's best providers to develop and implement solutions that help companies achieve better business performance through accelerated insight and innovation."Oil and gas companies today already have the ability to monitor rigs remotely, collaborate cross-company and across the world, and diagnose potential refinery equipment problems before they happen. Now enabled by .NET -- a set of software technologies connecting information, people, systems and devices via comprehensive support for IT industry-standard XML -- Microsoft-based solutions should move industry efficiency and effectiveness to the next level.Ability to Achieve Peak PerformanceAccording to Rick Nicholson, vice president for Energy Insights, an IDC company, "Despite currently high commodity prices, oil and gas companies continue to face significant business challenges such as the difficulty in finding new supply sources, an aging work force and increasingly complex regulatory compliance. Our research shows that high-performing companies are not necessarily those that spend the most on information technology, but are those that do the best job of aligning technology investments with business objectives."To ensure that its solutions have a planned road map and align with customers' business objectives, Microsoft invests more than $6 billion annually in research and development, enabling the world's oil and gas companies to better seize opportunities, improve predictability and compete under dynamic market conditions through the innovative use of technology. Each Microsoft-based solution is cost-effective and built using widely accepted IT standards that leverage existing IT assets. These offerings integrate the enterprise today while establishing the foundation to be compatible with next-generation innovation."The pressure's on for oil and gas companies to improve upstream and downstream business performance in the near term. Solutions grounded in .NET and supporting XML industry standards are imperative to deliver the integration, collaboration and knowledge management their businesses require," Mikulis said. "Our vision is to offer companies the insights they need across the full business federation -- from field production to refining feedstock including such complexities as delivery profiles, inventory in transit and variable contract obligations. This is the kind of innovative use of technology we're working on with our partners and customers."Microsoft's solutions portfolio focuses on four critical areas for the oil and gas industry:
Capital project execution. Using Project Intelligence tools and methods, companies have the ability to execute projects more reliably through timely and accurate project risk management and earlier time to first operation. They can also help decrease direct costs through better asset utilization, improved project management and reduced labor costs. These solutions are jointly delivered with Accenture, The Project Group Inc. and others.
Upstream portfolio management. By using technology to create a collaborative environment to improve decision and workflow quality across the oil and gas reservoir life cycle -- thus achieving Oilfield Connectivity -- firms can optimize production, reduce finding and lifting costs, and better address reserves replacement. Primary partners include OSIsoft Inc. and Schlumberger Information Solutions (SIS).
Downstream operational efficiency. Using tools and solutions to achieve superior operational and refining performance, smarter retail operations, and effective supply chain optimization can also help those in the downstream sector increase revenue by growing market share, improving asset performance and managing fuel prices. Companies can decrease costs by improving work-force performance and reducing operating and overhead costs. ABB, Aspen Technology Inc., OSIsoft, and SAT Corp. are some of the strategic partners in this area.
Health, safety and environmental (HSE) excellence. Today's hardware and software can improve monitoring, tracking and reporting to help minimize health, safety and environmental concerns and decrease regulatory compliance costs. Better training and risk management processes improve security, reduce waste and emissions, and decrease injuries, which contribute directly to the bottom line. These solutions are jointly delivered with Accenture, Meridio and Software Architects, among others. Research by Cynthia Moore, research vice president at Gartner Inc., highlights that business optimization of existing energy assets and infrastructure is a top business issue for oil and gas organizations in 2005. "Indeed, business optimization is on a par with management focus on environmental regulations and issues, and is linked to IT investments in other areas for oil and gas enterprises such as asset management and remote access technologies that ultimately can lower operational costs and increase productivity/profitability at the enterprise level," Moore said.Focus on Partners for Best SolutionsTo help complete and deliver these solutions, Microsoft continues to partner with other oil- and gas-focused IT companies to supply innovative solutions, not only to help make today's challenges easier, but to help enable the industry to reach its growth and profitability potential efficiently and safely."With Microsoft tools and technology, the development cycle for our products is significantly reduced, which accelerates our time to market," said Blair Wheeler, senior vice president of marketing for Aspen Technology, a Microsoft partner in downstream and upstream. "By building our systems on a Microsoft platform, our customers can easily connect users across their global operations in a simplified way, using the same technology they're used to using on a day-to-day basis.""We aim to revolutionize the way exploration and production companies approach decision-making. With the delivery of our unified seismic-to-simulation solution, which breaks down previous barriers to knowledge-sharing across technical domains, our customers are already realizing tangible business benefits. We see the convergence of technical and business applications as a critical next step toward a more efficient decision-making process," said Tim White, vice president of Microsoft upstream partner Schlumberger Information Solutions (SIS). "We rely on Microsoft's multi-industry expertise to provide a common development framework and standard technology platform with growth potential that we can readily deploy anywhere in the world -- which makes these kinds of solutions possible."2005 Global Energy Forum Focuses on Accelerating Insight and InnovationThe 2005 Global Energy Forum, hosted today in Houston by Microsoft, will feature keynote addresses by Joseph Bryant, president and COO for Unocal Corp., and International Energy Agency Analyst Amos Bromhead. In addition, Microsoft will launch its road map for all aspects of the oil and gas industry, and host breakout sessions covering compelling industry issues and featuring leading-industry vendors and end users. Registered guests include more than 300 executives and business and IT leaders from a variety of international oil, gas and oilfield services firms."As Steve Ballmer summed up at CERAWeek recently, 'our lifeblood is innovation,' and we are committed, with our partners, to help this industry better seize opportunities, improve predictability and compete under dynamic market conditions through the innovative use of technology," Mikulis said.
Wednesday, February 27, 2008
Big Oil Embraces wind power
It was a well known fact that the oil industry held out on funds an other support to accelerate the commercialization of wind power as an alternate source of energy. However, the market has forced the big oil companies to embark on the challenge of providing wind power efficiently. The article below from OilOnline outlines the current developments on the involvement of BP and Shell in developing wind energy in part; to keep the investors satisfied and also exploit the new discoveries in the wind power frontier.
http://www.oilonline.com/news/headlines/internet/20080226.Big_oil_.25349.asp
After years of watching the world's fastest growing energy business from the sidelines, big oil companies are playing catch-up and investing billions developing new wind power projects.
"Shell and BP see wind as an increasingly important part of the energy industry," said Randall Swisher, of the American Wind Energy Association. "They want to look for new opportunities, and wind is clearly in their sights."
Shell is developing a $4 billion wind power project in the Texas panhandle. When complete it will surpass Florida Power & Light's "Horse Hollow" wind energy facility to become the biggest in the world.
Not to be outdone, legendary oilman T. Boone Pickens announced his own wind project in the same Texas panhandle area -- a project even larger than Shell's and costing $10 billion.
Pickens, the 131st richest person in America, amassed his fortune by betting early on promising new energy sources -- his largest holdings are oil sands giant Suncor, EOG Resources and Quicksilver Resources.
"I have the same feelings about wind as I had about the best oil field I ever found," Mr. Pickens said in an interview.
It looks like Pickens' bet on wind energy is a good one. So far in 2008, investors in renewable energy stocks have been sipping champagne while the rest of the market has been in the doldrums.
Wind energy developer Nacel Energy has seen its stock jump 70% since IPO. The Wyoming based Company announced an 80-megawatt wind power expansion January 10th -- enough energy to supply 25,000 homes. Analysts have a $3.07 target on Nacel -- nearly double its $1.84 close yesterday -- stating the Company is undervalued compared to its peers.
http://www.oilonline.com/news/headlines/internet/20080226.Big_oil_.25349.asp
After years of watching the world's fastest growing energy business from the sidelines, big oil companies are playing catch-up and investing billions developing new wind power projects.
"Shell and BP see wind as an increasingly important part of the energy industry," said Randall Swisher, of the American Wind Energy Association. "They want to look for new opportunities, and wind is clearly in their sights."
Shell is developing a $4 billion wind power project in the Texas panhandle. When complete it will surpass Florida Power & Light's "Horse Hollow" wind energy facility to become the biggest in the world.
Not to be outdone, legendary oilman T. Boone Pickens announced his own wind project in the same Texas panhandle area -- a project even larger than Shell's and costing $10 billion.
Pickens, the 131st richest person in America, amassed his fortune by betting early on promising new energy sources -- his largest holdings are oil sands giant Suncor, EOG Resources and Quicksilver Resources.
"I have the same feelings about wind as I had about the best oil field I ever found," Mr. Pickens said in an interview.
It looks like Pickens' bet on wind energy is a good one. So far in 2008, investors in renewable energy stocks have been sipping champagne while the rest of the market has been in the doldrums.
Wind energy developer Nacel Energy has seen its stock jump 70% since IPO. The Wyoming based Company announced an 80-megawatt wind power expansion January 10th -- enough energy to supply 25,000 homes. Analysts have a $3.07 target on Nacel -- nearly double its $1.84 close yesterday -- stating the Company is undervalued compared to its peers.
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