In our supply chain, we have introduced a data-driven tool that helps us make better, faster and more effective blending decisions. We have to achieve the greatest efficiencies today, while preparing for tomorrow. However, the COVID-19 pandemic caught the sector off guard and disrupted the conventional means of generation, transmission and distribution of public utilities. While people are still figuring out whether to call or spell this phenomenon energy digitalisation, digitalization, digitisation or digitization, energy 4.0 or energy digital transformation, it is a disruptor, both on the commercial and the legal side. Five months later we had the business, MachineMax. By tapping into the enormous potential offered by cutting-edge technologies, now is the time to make deeper customer engagement a reality in the global energy industry at MEE 2021. The World Economic Forum estimates that digitalisation could provide around $1.6 trillion of value for the oil and gas industry, its customers and wider society by 2025. In a world driven by digitalisation, it is all about speed to innovate. Over the past decade, the incorporation of information and communications technology into the energy system has emerged as a significant driver of change in the sector but the pace and scale of that change is likely to increase dramatically over the decades to come. Digitization. Needless to say, this access to big data has benefited us enormously on our digitalisation journey and simplifying everyday activities. That trend is now extending to the oil and gas and mobility sectors. And energy executives across the world are all using the buzzwords such as Big Data, the Cloud, Digital Wind to Digital Oil Fields and Internet of Energy as they talk about their future strategies but all of them seem to me to trivialise the changes going on in global energy. Digitalisation in the energy sector involves the creation and use of computerised information and processing of the vast amounts of data which is generated at all stages of the energy supply chain. The global energy sector is undergoing a dramatic transformation, led by trends in digitalisation and centralisation. Across our lubricants supply chain, from manufacturing through to distribution and sales, we are investing more in digital technologies such as data analytics, artificial intelligence and machine learning. And the numbers and the repercussions of an EV rollout are truly enormous. It found that industry offered the largest potential to use digital technologies in the fight against climate change, because it could lower sector emissions by up to 61 million tonnes in an "accelerated rollout" scenario and by 35 million tonnes if the speed of digitalisation is "moderate”. Digital Single Market and the Energy Unionobjectives; -increase the digital capacity of the energy sector for the benefit of the system that is able to integrate higher shares of renewable energy and to optimise energy use by improving overall energy efficiency •Digitising the energy sector: an opportunity for Europe Why shouldn’t this apply to how we work and interact with customers? My team uses data-driven insights to automatically determine for any given lubricant product the right formulation that optimises both costs and quality for the customer. The coal-heavy strategy at Poland’s biggest utility, PGE, was hit this week by a provisional European Union agreement to end coal power capacity payments from 2025, adding to the utility’s existin, Batteries have become an incredibly important and largely ignored part of our lives; until of course your phone runs out of batteries! But we don’t have to wait for EVs to come. The combination of sensors, semiconductors and software will enable in the future the Smart Home and the Smart City as well as autonomous motor vehicles. It’s about upgrading jobs so that they become more interesting and enjoyable and at the same time allows us to automate and have better reliability and consistency in our core processes. None of this would have been possible without sensors and massive computing power which have enabled the game changing drilling technologies such as seismic imaging, horizontal drilling, digital oil fields and measurement while drilling. It was operating as a Shell majority-owned non-operated venture. Digitalisation is certainly transforming the energy industry. We take the best of a start-up culture and approach, and marry it with the power of a global leader with deep and extensive industry knowledge. Energy Digital Magazine is the ‘Digital Community’ for the oil & gas, utilities and renewable energy industry. Most major transformations fail, and strong leadership and effective change management is a crucial part of the adaptation process. We are at a tipping point … We estimate that 80-90% of the benefit of digital and digital work is simplifying complex data to better know and serve our customers. We are also using digital platforms to grow our business with workshops. Coupled with the rapid evolution of electric car and battery storage technologies, the scene is set for a digital energy revolution. What should one do at night or when the sun is behind the clouds? The breadth and scale of our business, combined with the voice of our customsers, means there is enormous potential and urgency to use digital to make our operations more efficient. Digitalisation. But there are 40m cars in Germany so if they all were to go electric there would be theoretically enough storage capacity for the whole of Europe! In 2017, we launched Shell LubeChat, a user-friendly and AI-enabled online chat robot, a world-first for B2B lubricants customers. Some clever software and power electronics allows Sonnen to manage everything seamless for the customer and to aggregate all the solar energy not needed by the community of homes so that it can be moved to those within the community that need it. In fact, global investment in digital electricity infrastructure and software has grown by over 20% annually since 2014. Digitalisation is certainly transforming the energy industry. Already a combination of PV&S (solar PV and storage) makes economic sense in places as far abreast as Italy and Tanzania. and services. We sell about five billion litres of lubricant every year, about one third of which goes into passenger cars, and two-thirds into industrial and heavy-duty use. Digitalisation is changing the energy landscape. Among the stakeholders who made this summation were… Enel has issued its 2020-2022 Strategic plan in which the firm plans to increase investments in energy ... Pete Davies of Uniper Technologies tells Kelvin Ross how digital solutions are impacting the conventional power sector ... Jan 21, 2020. And one of the results of this revolution is that people will move to the centre of the energy system, as this power consumption and generation, becomes digitalised, decentralised and data-driven. In 2000, the global market for solar was a mere 277 MW. Software are the brains used to control and operate different types of semiconductor such as microchips, power controllers and LEDs. While many energy companies are implementing newer technologies to facilitate grid management, oil and gas companies are turning to digitalisation to improve the decisions behind exploration and production assets. Digitalisation is the flavour of the month when it comes to energy companies. In particular, the industry considers improving operational efficiency (identified by 52% of respondents), decision making (42%) and cost efficiency (40%) as the top priorities for further digitalisation. Digitalisation can facilitate the development of distributed energy resources, such as household solar PV panels and storage, by creating better incentives and making it easier for producers to store and sell surplus electricity to the grid. This involves the application of new digital technology, such as low-cost cloud computing, the internet of things, big data analytics and blockchain to energy. However, solar has one big disadvantage and that is that it is intermittent. What is driving industry change? As lubricants manufacturers, all of us here in this room play a role in keeping the world moving and machinery operating. The data collected by this central IT backbone over many years has helped embed a data-driven decision-making culture throughout the organisation. The energy sector is used to thinking in terms of decades and the energy world is a slow-moving entity. Take mail, which, starting in the 1980s, was transformed into email. Our approach to digitalisation is the same as in our R&D function. Finally, our third focus area is to create new business models. Digital technologies are transforming our lives in ways that were unimaginable even one decade ago. Today, the U.S. postal system processes about 500 million pieces of mail per day, while about 205 billion email messages are exchanged in the US every day. And this new digital energy order is coming faster than most people think and it will rip apart old world businesses that are unwilling to change. We need to be adaptive, or we’ll be disrupted. And the impact has already been big as can be seen in the hundreds of billions of dollars that have been wiped off the value of many of our major energy incumbents. In recent years, the digitalisation of energy has become a major priority in the evolution of the energy sector. It optimises industrial operations and planning, connects energy producers and users, and facilitates new business models … Digitalisation of the energy sector as an endeavour will bring change in several dimensions The transition to widespread use of digital tools changes companies/organisations as well as the tasks of individ - ual employees. The World Economic Forum estimates that digitalisation could provide around $1.6 trillion of value for the oil and gas industry, its customers and wider society by 2025. Today, in China alone, more than 200,000 garages and maintenance workshops for cars and trucks have signed up to this platform. In October 2017 we had an idea to maximise the profitability of our customers’ off-highway fleets by using smart sensors and next generation analytics. It is also about people and creating more agile ways of working. Digitalization •Regardless of spelling, it's everywhere •Digitalisation is a rapidly expanding topic in the energy sector •Digitalisation of the energy sector has arrived in corporate reality - But not yet fully in the energy sector's legal departments Digitalisation brings a completely different dynamic. Digitalisation will continue advancing and there will always be new technology or ways that will be integrated into our lives. The French Development Agency AFD has agreed to provide 100 million euros in loan to Bangladesh for the digitalisation of the country’s power and energy sector. We are piloting Shell Accuport, a computer software programme used by ship owners and fleet managers to track how much lubricant is used by the vessel, and real-time locations to optimise delivery. By Prince Osuagwu Key industry experts in the energy sector have called for digitalisation of Nigeria’s energy sector, saying it would further boost the economy. The answer is store that energy but the issue is that until recently energy storage was just too expensive. Software and semiconductors go hand in hand. We benefit too as we can ensure we have the right products in the right locations without holding excess inventory. A click of a button and my groceries get delivered to my door. The energy sector is a relatively early adopter of digitalisation, with real-time monitoring equipment, automation and data analytics. It is the same with renewables. The electricity sector is at the heart of this transformation, where digitalisation is blurring the distinction between generation and consumption, and enabling four inter-related opportunities: 1) smart demand response; 2) the integration of variable renewable energy sources; 3) the implementation of smart charging for EVs; and 4) the emergence of small-scale distributed electricity resources such as … Another example is in shipping. We are creating services that enable them to do that. The decisions we make today could make the difference between thriving and just surviving. And there are further cost reductions to come as technology improvements push conversion efficiencies above the 18% level found in today’s standard solar modules towards the rates of a modern satellite (40%). These enable us to gain deeper insights into our customers, and improve how we deliver products and services to our customers. Energy Digital. The pace of digitalisation in energy is increasing rapidly. Be the disruptor, and not the disrupted. Having just one global ERP, the same in every country, means we can strengthen data management and makes it easier for our customers to do business with us. What is Shell's Net Carbon Footprint ambition? At the same time it will create billions of dollars for those embracing the new energy world. But we are only at the start of this digital energy revolution which will rip apart any business that is too slow to embrace the new digital energy order. Shell’s ambition to be a net-zero emissions energy business, Cutting carbon together, sector by sector, Natural Gas: providing more and cleaner energy, Putting Safety First in Shale Oil and Gas, Leveraging Technology in Shale Oil and Gas, Social and Environmental Responsibility in Shales, Chief Technology Officer and Chief Scientists, The role of technology in the energy transition, Another step towards a global electricity business, View New Energies: building a lower-carbon power business, View Digitalisation: Shell joins web summit, Explore Shell’s Global Energy Resources database, Share your idea and transform the energy industry, Boosting local economies through entrepreneurship, Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), Preventing the facilitation of tax evasion, View Sustainability reporting and performance data, Voluntary reporting standards and ESG ratings, Investing in access to energy for communities, 4 tips to excel in a Shell face-to-face interview, 7 tips to prepare Students & Graduates for an online video Interview, 10 employees share their first week at Shell, 9 ways to help you find the right career path, Find a Job in the Shell Graduate Programme, Digitalisation in the Energy Industry: Adapt, or be Disrupted. At Shell, we are in the process of accelerating our digital transformation in our organisation. Digitalisation enables “smart” buildings, vehicles and industrial facilities to provide new sources of flexible load to the energy system, which can help to reduce renewables curtailment on the supply side and support communities to consume energy produced themselves, "behind the meter". “Energy & Digitalisation: Artificial Intelligence (AI) ... AI and energy sector are a perfect match to each other. In our personal lives, we expect greater convenience and connectivity with our mobile devices. Dialogues will focus on African energy sector innovations investigating near and long-term prospects for technological advancements where decentralisation and digitalisation play a more pronounced role within the continent and how these technological progressions will, undoubtedly, impact Africa’s energy sector in a post COVID world. What are the energy efficiency opportunities of digitalisation? February 7, 2019 by Matt Brown and Ravi Mahendra. This is the business model of the Berlin based Mobisol which offers its clients a pay as you go model under which customers use their mobile phones to pay for their own PV&S systems on a monthly basis. Renewable energy and CO2 reduction have triggered a profound need for digital transformation of the energy sector. And why is it important? The world creates 2,500 petabytes of data every day, and around 90% of that data was generated in the last two years alone. A critical success factor that we’ve done is to standardise many of our processes in countries across the globe. It is not the latest gadget or tool, but what’s the customer pain point and how can technology enable us to solve it best. Digitisation. The aggregation and real-time action of energy assets and industrial loads could provide accurate frequency regulation and demand response, providing new revenue streams for struggling fossil-fuel assets. 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