At its annual Energy Analyst And Sourcing Advisor Event in Berlin, Deutsche Telekom/T-Systems re-emphasized its commitment to service the energy sector with a dedicated offering. Over the last three years, Deutsche Telekom has spent significant resources in building up expertise to become a platform and service provider for the utility sector. Our main observations during the event were that Deutsche Telekom:
The Oil And Gas Information Technology Innovation Dilemma
The hydrocarbon logistics chain of natural gas and crude oil connects globally distributed exploration and production sites with industrial and private consumers via pipelines, tankers, rail cars, and trucks with massive intermediate buffering storage and conversion facilities (tank farms, refineries, gas plants); it is the lifeblood of our energy supply chain today and for the coming decades.
More than 75 million barrels of oil and 300 billion cubic feet of natural gas are produced, transported, and consumed all over the globe — every day. Along the complex transportation chain, these special bulk products, both liquids and gases, are transferred between the different modes of transportation, resulting in a number of challenges based on complex measurements of product volumes and masses:
Measurement accuracy. In an ideal world, we would always determine the mass of crude oil and natural gas at each measurement point; however, due to the large quantities involved, weighing is possible only at the very end of the logistics chain. Consequently, we have to live with measurement data that typically carries an uncertainty of 0.1% to 0.5 %, depending on the measurement devices’ intrinsic accuracy.
Some days ago at Forrester’s IT Forum in Lisbon (June 9-11) I gave a presentation together with my colleague Andy Bartels on the IT market recovery (we predict a 9.3% IT market growth in 2010) after two economically challenging years in 2008/9. In fact, we were making the point that the market rebound we currently see is not simply a recovery but the beginning of a new IT hyper growth phase fueled by a new wave of innovation.
A strong driver of this innovation is what we call Smart Computing at Forrester: the integration of physical world information into intelligent IT-supported business processes in 4 steps: Awareness (via new sensor technology), Analysis (with advanced BI solutions), Alternatives (including rules and process engines) and Action (in industry business applications), plus a 5th feedback loop of Auditability for tracking and learning.
A well-known example of smart computing solutions is smart metering in the Utilities industry. In another presentation in Lisbon, a colleague asked the audience, a room full with all the leading IT service companies, who all had an initiative running with smart metering – everyone in the room raised their hands. Then he asked who actually had more than 1-3 (pilot) projects running – and almost no one raised their hand.
Is smart metering just hype that everyone is jumping on or what is the reality of the lighthouse example of smart computing at this point in time?