GE's latest Tech Talk hosted by Rod Christie, President & CEO Turbomachinery Solutions: As we continue to navigate this cycle, the future looks bright for oil and gas
I had the opportunity to join a great panel discussion at the Gastech Conference in Tokyo where we debated the opportunities for delivering greater efficiency and cost savings through improved innovation and technology.
In my view, even though cost remains a crucial factor in the current economic climate, we have good reason to look optimistically ahead at the future.
I believe that $50/bbl is a sustainable price for this industry
First off, existing new technology makes it hard to stay pessimistic. Secondly I believe that $50/bbl is a sustainable price for this industry.
I’m saying this not only because more than ten years ago this price level was considered high, but also because this presents great opportunities to make our industry leaner, more efficient and more profitable.
For me, this is best exemplified through some of GE’s recent innovations like the Brilliant Factory, and our new generation gas turbines, LM9000 and NovaLT12.
Do you agree?
Five Innovations to help fuel the future
1. Brilliant Factories
Using data analytics to improve productivity
The Brilliant Factory represents the first step into a new era of digital manufacturing. Here software and hardware are merged into one, enabling us to reimagine how products are designed, made and serviced.
Additionally, the use of advanced analytics tools makes it possible to better predict maintenance issues and avoid machine failures – while also minimizing product performance issues, which can now be spotted very early in the process.
Efficiency isn’t something we just want to give our customers; it starts in our own workshops.
• 50% lead-time reduction
• 39% inventory reduction
• +0.8% inventory turnover
2. NovaLT12 heavy-duty gas turbine
Designed for high efficiency and lower total cost of ownership
The NovaLT12 is not only a next generation turbine in terms of efficiency – it also stands out via an innovative service model. This includes an Engine Exchange Program, where the entire engine can be seamlessly swapped with a refurbished one.
Standardization and modularization factors established by the highly successful NovaLT development program significantly reduce customized engineering needs, which essentially means faster delivery times and 18-19 extra production days thanks to shorter downtime for overhaul.
3. LM9000 gas turbine
A cleaner, stronger & more efficient alternative
Drawing on engine technology from the aviation industry, the LM9000 is a great example of how to take an already proven technology to the next level through the GE Store.
Not only is the LM9000 designed to power massive LNG plants, but it is also doing it better than any other turbine in its power class in terms of efficiency, availability, emissions and total cost.
Advantages of LM9000 vs. typical non-GE option:
• 50% longer mean time between maintenance
• 40% lower NOx emissions
• 20% lower total cost
• 20% more power
• 25% fewer trains needed
4. Software solutions
Deeper insights for optimized, safer operations
Software applications are already transforming the industry, by leveraging sensors, connectivity, data and analytics to improve the reliability, availability and safety of assets, and help minimize total cost of ownership overall.
At the center of our software solutions is Predix – our cloud-based operating system built for the Industrial Internet. By delivering the right information to the right people at the right time, Predix enables faster and improved decision-making in every area of your business.
Reduced project risk and faster lead-times
By developing standardized modules, which can be combined per customer requirements, we are reducing the time needed to engineer the equipment and simplifying the entire process.
LNG modules – large or small – are prime examples of this. By turning modularization into a product, we are not only reducing project risks – we also reduce procurement lead times and uniform cost structures across the product line.
Modularization for small scale LNG
Through our fully integrated design, we are also reducing cost from start to finish for small-scale LNG. One of the key benefits is faster time-to-market, which is enabled via flexible project management and simplified field installation.
Benefits of modularization
• 120 MTPA proposed capacity in remote areas and mega projects
• 15% Capex reduction – moving 30% of work force from site to fabrication yard
• -30% time-to-market through Plug&Play approach
• 99.5% manufacturing on-time time delivery with modular approach
Small scale LNG Benefits
• Flexible project development
• Simplified field installation
• 50% faster time-to-market
Making innovation and technology thrive in the current cycle
In my opinion, the best companies use volatile times as a catalyst to drive beneficial change.
We’ve leveraged the current industry cycle to reflect on what our customers will need in the future and we’re disrupting traditional product development to introduce smarter and more cost-effective solutions to the market.
One way of doing this is by leveraging the GE Store to transfer intellect and technology across multiple industries. This allows us to take on some of the most complex challenges in the oil and gas industry - and continuously seize new opportunities as they emerge.
Not just in terms of cost savings – but in terms of equally important industry factors such as reliability, flexibility, efficiency and productivity.
Are you doing something similar – or do you have a different take on innovation and technology?
Learn more about all of GE Oil & Gas' Tech Talks here.