The Major Oil Marketers Association of Nigeria, MOMAN, has noted significant data infrastructure gaps in the Nigerian Downstream Value Chain.
MOMAN Chairman, Olumide Adeosun, revealed this at the first quarter Webinar for Energy Correspondents Last Friday in commemoration of the World International Data Day.
“The Oil and Gas Industry has a lot of data; however, the data needs to be organized and converted into information to be useful to the end users”, he said.
He maintained that efficient data systems are needed to maximize and optimize the downstream petroleum structures.
Supporting this view, the Executive Secretary, MOMAN, Clement Isiong, said that MOMAN advocates investment by the Authority, market operators, and all and sundry in data gathering and acquisition, analysis, exploitation, and transparency as a key necessity for deregulation.
He further stated that regular data publishing and feedback from the Authority is necessary.
Speaking in the same vein, the Founder & CEO, Allegro Technologies Inc, Obinna Muoh, quoted Clive Humby, as saying, “Data is the new oil. Like oil, data is valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic and chemicals to create a valuable entity that drives profitable activity; so must data be broken down, analyzed for it to have value.”
He listed sources of data to include structured, unstructured, and also semi-structured data.
Others are equipment data such as temp, mileage, voltage, pressure, and vibration) maintenance history, customer data, payment data, inventory data, logistics (routing) data, safety data, health data and visitor Logs.
Digital Transformation according to him creates new digital products, digitalization automating Business Processes and digitization versus analog information.
“To begin with the end in mind means to start with a clear understanding of your destination. It means to know where you’re going so that you better understand where you are now and so that the steps you take are always in the right direction.” – Dr. Stephen R. Covey.
“Data is like garbage. You’d better know what you are going to do with it before you collect it.” — Mark Twain.
70% of digital transformation projects fall short of their stated goals, even when company leadership is fully onboard with the idea. -2020 report by Boston Consulting Group.
“The importance of data and automation depends on your objectives, as a downstream operator, your objective should be to differentiate your business from your competitors in the eyes of the customer”, he added.
The CEO maintained that drivers of customer experience are availability, accessibility, variety, and quality of products and services at retail outlets, distributors & digital storefronts.
Speaking on the key ways data and automation are important for a downstream business, he said, “Optimizing these five levers improves product availability, accessibility, variety, and quality”.
On supply chain optimization, he said, “Data on product (refined fuels & lubricants) demand can streamline your operations, improve product delivery, storage utilization, and your bottom line needs to be able to track inventory levels, monitoring logistic routes, and analyzing customer demand (daily demand forecasts) in order to prevent stockout”.
Optimization of operations by collecting and analyzing data on production, refining, distribution, and sales, companies according to him can identify inefficiencies, reduce costs, eliminate leakages, and improve overall performance.
Speaking further on quality control, he noted that data can also be used to ensure the quality of the products being produced and sold in the downstream oil and gas industry, by collecting data on various parameters such as composition, purity, density, and viscosity, companies can monitor product quality and take corrective actions if necessary.
Also on safety and regulatory compliance, he stressed that by collecting data on various safety and environmental parameters, companies can monitor their compliance with regulations and take corrective actions to mitigate any risks.
On predictive maintenance, data according to him can be used to predict when equipment will need maintenance or repairs, by collecting data (sensors) on the performance of equipment such as pipelines, tanks, and pumps, companies can identify potential issues before they become critical and take preventive measures.
He stated that high asset utilisation is vital to downstream profitability, and routine maintenance is vital to utilisation.