What is the general business mood in the market like?
I feel there is a slight optimism. It looks like everybody has more or less come to terms with the current oil prices, setting the right budgets for the current market needs. Now, I think the budgets are the right size for the current prices. On top of that, for a company like Emerson, there is huge potential in the fact that companies have to work with much less manpower and are trying to be more efficient. We are focussed on the digital revolution, especially asset monitoring and more efficient operations.
Could you talk about a specific service for the industry that you may have developed?
We start at the wellhead with equipment to help the customers reduce the manpower while still being able to monitor their sites. In Abu Dhabi, there is a high sulphur content which is very dangerous for the individuals. To solve that we have the equipment that monitors operations around the well with more safe operations.
Can you explain the concept of digital asset management?
Everything now comes in the digital form, which has many advantages including the fact that more information and data have become available than previously. There are small computers that can measure different elements at the site, giving out signals in case of equipment deterioration. This helps in diagnosing and repairing the equipment. This concept is important because the time has come where companies need to be more efficient. The common trends now include how to become top quarter performance while reducing maintenance cost. The top performers should have 80% of their maintenance automated, while currently they are only at 20%-40% in the region.
What is your opinion of the regional industry’s adoption of digitalisation?
I see that there is a change happening now. Maybe last year there was not enough drive to use these technologies. This is changing now since companies are striving to become top quarter performers. This is especially true now considering the current directions that, for example, ADNOC is setting which is all about improving efficiency, reducing cost, and increasing profitability.
How has Emerson come to terms with the new market conditions?
Maybe we focus less on the big projects. Instead, the main focus now is on operational aspects, and there are a lot of things to say for that. For instance, with ADNOC we are discussing maintenance and spare parts programmes, where we optimise spare parts for the group rather than them managing it themselves. This creates a win-win situation. For us, it has created a different revenue stream. For them, they don’t have to worry about maintenance and spare parts.
