McKenzie Energy Insights on digitalization at the NAICE 2018

1. 1McKinsey & Company
McKinsey analysis of “Value of Digital in Upstream”
1 Sum of total cashflow impact (from production, capex, opex improvements) 2 Excluding drilling operations
SOURCE: Team analysis
OUTSIDE-IN ESTIMATES
$/boe pre-tax cash flow1 in 2025
Total cash flow improvement potential of ~9 USD/boe across the offshore O&G value chain
9.01.21.0 4.52.0 0.3
1.00.50.0 0.1 0.2 0.2
1.60.4 0.30.0 0.8 0.1
6.42.0 0.5 3.70.2 0.0
DrillingExploration2 Field
development
SG&A Total
Operations
and
maintenance
Advanced
analytics
Internet of
Things
Process
digitization
Total
~70%
of
Value
~70% of Opportunity