brightsolid Tech Trends in Energy

Technical Innovation with Personal ServiceInformation Classification: Restricted

brightsolid

Tech Trends in EnergyOctober 2015

22


Richard Higgs

CEO, brightsolid


Agenda

brightsolid today Regional data centres Connectivity Cloud PaaS SaaS

4Technical Innovation with Personal Service

Information Classification: Restricted

brightsolid today

Mission: Technical Innovation with Personal Service (TIPS)

Expanding digital platform business of DC Thomson & Co.

A globally connected cloud hub and regional integrator with the ability to become a virtual systems integrator in the future.

A values driven organisation





Supporting Aberdeen’s agenda

Energy, City and Shire (Food & Drink, Life Sciences, Tourism)

Stopping data leakage

Support Aberdeen as a Living Laboratory of the future

IoT bid: a commitment from the companies here today

The importance of regional data centres



Communications becomes critical

Aberdeen peering centre

Meet me room

Support city wide Wi-Fi

SLA across the UK at 30 milliseconds

Assured and efficient Connectivity

88


Cloud

Hybrid and Syndicated



Cloud 101

10Information Classification: Restricted

Our Cloud PhilosophyWe care about and make good use of the geographic location of our Clouds.

All our Clouds are at known locationsand are as environmentally efficient as possible. The UK is cool.

Not all Clouds are created equal. We deploy all services internally prior to release, learning and refining to enable truly deep knowledge.

We must represent fantastic value. Return on both cost and operational investment, in addition to our personal values driven approach to customer service.

brightsolid security is strong and simple.

Security is always at the heart of all that we do.

The opportunity is in the revolution of cloud, not the evolution.

Revolution is about redeveloping for a cloud first world, not iterating.

We embrace commodity cloud wherever appropriate.

Commodity doesn’t mean cheap, it means greater economic benefit.



Cloud Overview Today

Dedicated Private Cloud

Virtual Private Cloud

Two core Cloud capabilities

Dedicated Private CloudHardware dedicated to specific customer

Virtual Private CloudHardware shared between multiple customersSoftware enables virtual tenant boundaries.

Both Dedicated and Virtual Private cloud capabilities available on VMware and Hyper-V



Hybrid CloudHybrid Cloud is achieved in any infrastructure which spans two or more of the following:

• Customer On-Premises Infrastructure

• brightsolid Cloud Platform

• Public Cloud Platform

Hybrid Cloud empowers our customers by not dictating to them what the best location for their data is, but by enabling them to deploy the best solution for their specific needs.

World-class partners. Local experts. Customized cloud.

Hybrid Cloud empowers brightsolid by not limiting us to just the services we can provision from our own datacentres, but by enabling us to take advantage of a worldwide network of capability and expertise to deliver best of breed services.

Technical Innovation with Personal ServiceInformation Classification: Restricted 13

Hybrid Cloud adoption set to accelerate

Decision made by CIOs to adopt hybrid, but often no strategy yet – hence we need to make it simple



Cloud from a Cost Perspective

Get as close as possible to common units of measurement across infrastructure.

BYODC Co-lo Managed Hosting

Cloud

Labour Per MonthPer Month Per Month

Per Month

Power Per Month

SW

Infrastructure

Every month to 3 years

Every month to 3

years

Every month to 3 years

HW

Infrastructure

Every 3 to 10 years

Every 3 to 10 years

Per Month

FacilitiesEvery 25

yearsPer Month

1515


Software as a Service Update

The right choices available in Aberdeen



Windows Azure Pack

Using Dell’s Proven reference Architecture

1. Windows Azure Pack delivers a web portal for VM management in an Azure consistent manner.

2. Allows self management and provisioning of Virtual Machines and Virtual Networks

3. Enables MySQL and MSSQL as a service features

4. LDAP management in the cloud

5. Revolution for applications, through reliable componentry built for the cloud. “We haven’t just built our last infrastructure, we have brought our last application”

Full Deployment in Aberdeen by Christmas



Hybrid is the big trend for the next 12 months at least

1. There is no one best location for all customer data – on premises, private clouds, and public clouds all have their place

2. Management and usage of clouds should be a unified and consistent experience

3. The customer always owns and has full control of their data

4. Hybrid enables the future by creating new development and deployment opportunities

Customer Site

brightsolid

CloudPublic

Clouds

ConsistentPlatform

1818


Alan Melrose

Manager, Energy Voice


Survey Analysis presented by Alan Melrose

In association with



Background and Context

www.energyvoice.com est. 2012 as a pure play digital B2B publishing

product

Audience has grown from a base of 1100 unique visitors to just under

100,000 in 3 years

International audience

Survey undertaken to get an industry view on the next 35 years

http://www.energyvoice.com/



0%

5%

10%

15%

20%

25%

30%

35%

40%

Africa Asia Europe SouthAmerica

MiddleEast

NorthAmerica

0%

5%

10%

15%

20%

25%

30%

35%

• More than 2000 people responded

• Equal representation across E&P,

OEM, Supply Chain and

Financial/Government

stakeholders

• Operational bias in Europe

although representation of all

other geographies

• Middle to senior management

dominance


• Continued slump in commodity prices

• Little signs of near term improvement

• Reductions in investment globally

• Struggling UKCS economics

• Rationalisation of capacity – people,

assets, overheads

• Uncertainty about the cycle – recovery

or further deterioration?


On a scale of 1-5, how do you view the future of the UK oil and gas

industry?

0%

5%

10%

15%

20%

25%

30%

35%

40%

very negative negative neutral positive very positive unknown

• Sector outlook

• Trending towards the negative on general

industry outlook

• Aberdeen to continue to attract investment,

but at reduced levels

• Supply chain will be streamlined – more

efficient

• Innovation and Technology

• Tax incentives required to maintain

investment

• Development of recovery techniques to

extend life of the UKCS


What effect are the changes to be implemented

by the OGA going to have on the industry?

0%

10%

20%

30%

40%

50%

60%

70%

Significant Effect Modest Effect Minor Effect No Effect

• Career Development

• Focus to be given to training and

education as opposed to remuneration

• Investing ‘through cycle’ and focusing on

‘management’ training

• UKCS Interventions

• Government needs to develop and

commit to UKCS strategy

• 80% believe that the OGA will have a

minor/modest impact



Technology Through the Ages

Oil was first discovered in US after rig drilled down 70 feet and came up coated with oil in 1859

Nearly 100 years later the first offshore mobile drilling platform, the Breton Rig 20, made history when it operated in 20ft of water in 1949

The UK North Sea joined the technology race in 1974 when the first oil was produced from Argyll field using the first ever floating production unit.

Today it’s at the forefront of Ultra-deep wells, drilled in water at least 1.5km deep into several more km of rock to the reservoir below.

http://www.spe.org/industry/history/timeline.php

http://www.spe.org/industry/history/timeline.php



Fast Forward to 2015

The research was conducted at a time when the industry was grappling with new playing field

Oil price has halved, skimming $40 for the first time in years and overhead had spiked

Plus OGUK found the cost of producing a barrel of oil reached a record high last year, topping out at £18.50

Between 2000 and 2013 oil and gas production grew by 13% and 41% but E&P CAPEX grew soared by 374% to approx$682million

Our respondents reflected this urgency for change and also the role technology will play in securing the North Sea’s future



Headline Results



Oil Price Future - 2020

• The majority of respondents (57%) had a positive view of the price per barrel increasing

to $60 - $100 in the short to medium term

• 38% of both International and UK respondents expect +$100 oil by 2020

• More than 30% of respondents from E&P, OEM and OFS companies expected it to

exceed $100 by 2020

• The general forecast from the industry across all four survey’s was that the price per

barrel would bounce back but it would take time



Impact of Reduced Oil Price on R&D

• The majority of respondents (66%) believe that there will technological development will

be negatively effected by the current oil price

• 83% of participants from the key E&P companies agreed that investment had already

been affected by market conditions

• By comparison 70% of UK respondents believed that investment had been reduced

compared to only 56% on International participants – perhaps a reflection of our high

cost base



Impact of an R&D Decrease on Offshore Industry Over Next 5 Years

• The overall belief was that the industry was in danger of stagnation in the long term if

investment was to decrease

• The key belief was that investment has to continue in order to drive better efficiency

and to help lower the cost base in the North Sea


Factors Limiting Technology Implementation(Present Day)

• The concept of early adoption (or lack of appetite) was a key theme in the survey;

however this was not mirrored by International respondents who were 50% less hesitant

to be a first adopter

• Again the lack of access to finance leading to a reduction in appetite for R&D was seen

as being a risk to the industry



Factors Limiting Technology Implementation(Next 5 Years)

• There was a 10% reduction in those who felt that early adoption would be the main

mitigating factor

• Is this a reflection of the realisation that in order to drive efficiency and reduce costs

new technology adoption will be essential?

• Risk of failure is believed to be the highest barrier (almost 40% of all respondents)



Technology Gaps

• Most respondents (46%) believe that recovery rates from existing fields are the

strongest driver of technology gaps

• Again this seems to be reflective of the high cost base and knowledge that driving

efficiencies will be key

• The question is how does this work when there is a lack of willingness to adopt new

technologies – a challenge to the industry culture?


Who Should Drive This?

• Unsurprisingly most respondents believe that the investment in new technology must be

driven from the E&P companies

• The role of the OGA was thought to be marginal in this - across the survey’s the role of

the OGA was predominately believed to be in influencing Government and fiscal policy

rather than the industry itself


The Benefits of Standardisation

• The majority (43%) of respondents have seen little standardisation for new capital

equipment

• Only 6% believe that the market for new technology has any level of standardisation

• However the overwhelming feeling within the industry is that standardisation would

have massive economic benefits

• However this is a major challenge for the industry which is notorious for lacking

collaboration.


What Will Drive Technology Investment?

• Technology is almost entirely seen as a driver of more efficient behaviours

• Safety is not a concern which is a reflection of how well the industry has adopted an

unparalleled attitude to employee well being in the past 30 years

• Unfortunately only a minority of respondents believe that new technology will improve

asset life (6%) or new reserves (8%)



From Interviews With Leaders

“A lot of companies are not going to take risks during a downturn and there’s a big challenge from pitching the idea of a new technology to it being adopted and put into use. A lot of companies are nervous about making that move in the current climate”

“Investment in innovation and technology – There’s a problem with lack of innovation, the industry is not bad at bringing in new technology but there is a real problem with innovation”

“We are in the business of stimulating technology and access to new reserves and the most attractive aspect of that is how to make money from it. Making money is the whole point of the exercise.”

“Not many people want to be the first to move on new technologies in the current environment but there is also an issue with lack of sufficient finance to help get some new technologies off the ground”



Conclusion

This research gave a snapshot of the attitude around technology in the

North Sea

While many recognise the critical role of new technology, there is still

resistance to early adoption

That change of mind set has to be driven from the E&P companies or it is

not believed that change will occur

The future of the North Sea as a viable basin will rely on new technology

assisting with improved cost reduction and driving efficiencies


Thank You for listening For more information

www.brightsolid.com

https://www.energyvoice.com/og2050

http://www.brightsolid.com/

https://www.energyvoice.com/og2050

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brightsolid Tech Trends in Energy