brightsolid Tech Trends in Energy

Technical Innovation with Personal Service
Information Classification: Restricted
brightsolid
Tech Trends in Energy
October 2015

22
Richard Higgs
CEO, brightsolid

Agenda
 brightsolid today
 Regional data centres
 Connectivity
 Cloud
 PaaS
 SaaS

4
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

5

6
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

7
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

9
Cloud 101

10Information Classification: Restricted
Our Cloud Philosophy
We care about and make good use
of the geographic location of our
Clouds.
All our Clouds are at known locations
and 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.

11
Cloud Overview Today
Dedicated
Private Cloud
Virtual Private
Cloud
Two core Cloud capabilities
Dedicated Private Cloud
Hardware dedicated to specific customer
Virtual Private Cloud
Hardware shared between multiple customers
Software enables virtual tenant boundaries.
Both Dedicated and Virtual Private cloud capabilities
available on VMware and Hyper-V

12
Hybrid Cloud
Hybrid 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.

Information 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

14
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 Month
Per 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
Facilities
Every 25
years
Per Month

1515
Software as a Service Update
The right choices available in Aberdeen

16
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

17
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
Cloud
Public
Clouds
Consistent
Platform

1818
Alan Melrose
Manager, Energy Voice

Survey Analysis
presented by Alan Melrose
In association with

20
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

0%
5%
10%
15%
20%
25%
30%
35%
40%
Africa Asia Europe South
America
Middle
East
North
America
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

26
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/timel
ine.php

27
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

28
Headline Results

29
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

30
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

31
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

33
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)

34
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%)

38
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”

39
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

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