SAP Oil, Gas, and Energy Highlights 2022
Dear SAP Oil, Gas, and Energy Community
2022 is ending, letting us enjoy the most beautiful and peaceful time of the year, gather our family and friends, summarize our achievements, highlight the best moments, and learn from the experience.
Let us have a look at the leading SAP Oil, Gas, and Energy highlights in 2022:
- Industry Cloud Portfolio
Over 2022, SAP’s Oil, Gas, and Energy Industry Cloud portfolio have grown to over 40 Industry cloud solutions and 10 successful customer references.
In Oil, Gas & Energy we now have around 270 live S/4HANA projects. The number almost doubled compared to 2021. We observe a strong interest in the S/4HANA Cloud offerings with high growth rates.
- Architecture Workstream
During the last meetings of the Advisory Council for Oil, Gas & energy, we had a couple of dedicated architecture sessions. We now decided to establish a formal Architecture Workstream as a part of the advisory council to discuss relevant technology topics among the group: sharing experiences, exchanging information on product roadmaps, and discussing the adoption within the industry. We successfully kicked off the workstream in November and will have quarterly meetings.
- Upstream consortium
With our most recent SAP S/4HANA Cloud release, we are now culminating a journey with our customers to industrialize and standardize key business processes that our customers require to run their businesses. Our customers recognize that over 80% of their processes are needed to run their business and yet, are not truly differentiating. With a dedicated customer group, those processes were identified and prioritized to build industry-standard processes. The overall scope covered finance, joint venture, asset retirement obligations, maintenance, procurement with lean and complex services, and a new field logistics solution (see below!). Customers had dedicated teams for the different workstreams to work closely with SAP and Accenture, our co-development partner, to accelerate delivery to help with user-centered workflows, user interfaces, and integration. One especially important activity was quarterly testing, which took place for over 10 consecutive quarters, and provided immediate feedback to our development teams. And, while the word “culminating” was used in the opening, the journey continues as our customers adopt the solutions and our solutions continue to evolve.
- Field Logistics
We are excited to present a new SAP cloud solution to plan and execute the field logistics for equipment and material. The solution builds on standard SAP components and manages the end-to-end process from receiving from suppliers, outbound logistics and tracking, receiving at the remote location, and returns. The equipment and material can be owned or rented, including direct purchases of non-stock items with or without a material master. The solution has been built for and with industry with several of our upstream oil, gas & energy customers, creating new standard processes to run logistics operations.
- Pricing Metrics
This past year, we have updated our industry-owned solution pricing metrics to support growth in the cloud and sales to other industries that need our solutions (for example, over 20% of our joint-venture customers come from industries other than Oil, Gas & Energy). New metrics include tons, spend, and transactions.
- IAM (Intelligent Asset Management) Co-Development and Go to Market with Accenture.
Actualized significant acceleration and enrichment of the IAM Product roadmap, established an experienced and highly productive co-development joint team, and instantiated a new co-innovation workstream to engage the industry in the journey.
Multi-dimensional best-in-class GTM program building on experiences from 5 years of collaboration.
8 Joint Enablement sessions targeting 348 Sales Executives, a Pipeline of 142 joint opportunities, and 45 Joint Wins
- STO (Shutdown, Turnaround, and Outages) Co-development with Wipro started in early 2022:
Wipro & SAP aim to build a cloud-based turnaround solution with front-runner customers incorporating industry best practices. McKinsey and SAP have invested in creating a joint view of the end-to-end scope and best-practice processes.
Shutdown, turnaround, and outages are periodic, scheduled, and essential major maintenance project activities that cannot be carried out while in operation. STO projects are critical in asset-intense industries like Oil and Gas, Petrochemicals, Utilities, Chemicals, Mining, and Metals to ensure that facilities are safe, compliant, optimized, and run at the best capacity and quality.
Shutting down a primary production facility or parts is a large and complex project that touches multiple disciplines. Not only can it consume >50% of the annual maintenance budget of a plant, but it is also a potential source of environmental, health, and safety incidents. It can negatively impact the reputation of an organization.
Further, the loss of revenue and income during a shutdown can be even more significant than the costs of the shutdown itself. There is a large scope for improvement in this process by reducing direct costs, shutdown duration, and frequency. Planning shutdowns for plants in the future will require a solution fully integrated from end-to-end, available anytime, anywhere to support these projects.
6 workshops design review with SAP OG&E (Oil, Gas, and Energy) customers and VDI – The Association of German Engineers.
- (CaPEM) SAP Capital Project Engineering Management in Partnership with Siemens Teamcenter CALM,
launched the partnership and solution to the OG&E global customers during the International Energy event in Amsterdam. CaPEM solution is designed to optimize the performance of capital assets, such as a plant or facility, in project delivery and operations. CALM consolidates the asset data and weaves the digital thread through the plant’s lifecycle; the solution compiles the engineering information creating a closed-loop digital twin to visualize and simulate project designs, construction execution, and operational performance.
- Energy Transition
Reset your business model as part of the energy transition. The global energy system is under extreme pressure to decarbonize by transitioning from hydrocarbons to carbon-free power generation, electrification, and deployment of new energies at scale, especially biomass and hydrogen. Here we are looking at the mid-to-long-term horizon and huge investments.
SAP can support you with the following topics: Renewable Energy Production, reduction of methane emissions, Carbon Capture, Utilization and Storage (short CCUS), the entire low carbon hydrogen value chain, electric vehicles infrastructure, and as an intermediate and supporting step to these topics also on the shift from coal and oil to more natural gas or liquified natural gas (short LNG) usage.
The following links give you a deeper insight into what we are doing with some of our customers/partners in the field of low-carbon hydrogen:
- Roadmap for large-scale green hydrogen import to Germany
- Jump-starting the European green hydrogen economy
- Think Tank
The Energy Leaders “Think Tank” is a group of forward-thinking c-level procurement and supply chain leaders who share a common purpose and desire to reinvent the way procurement runs and build sustainable and resilient supply chains.
There have been four meetings in 2022 with a focus on supply chain transparency – sharing experiences, best practices, ambitions, challenges, and opportunities.
Think Tank has formed an Action Tank that is working on a project to improve supply chain transparency.
Feedback “Two Sides of the Same Coin?” from Luke van der Waals, SLB, on the annual cross-industry Think Tank summit in New York.
- Shell and SAP
Shell and SAP intend to co-innovate on greenhouse gas emissions accounting solutions and supply chain management practices so all players along value chains can measure and reduce their greenhouse gas footprint.
Shell has been a founding member of the Open Footprint Forum and we are working together to create a common model for footprint-related data covering all emission types, consumption, and base calculations to normalize and aggregate industry data.
- Phillips 66
Phillips 66 chose SAP to deploy industry-leading solutions to enable its digital transformation. Goals included maximizing profitable decision-making, mitigating commodity risk, managing capital, and increasing visibility at the most granular level along the hydrocarbon value chain.
“SAP’s collaboration with Phillips 66 helps to unlock and accelerate business and energy transformation opportunities for a sustainable energy transition by creating real-time visibility along the value chain,” said Peter Maier, President, Industries and Customer Advisory, SAP SE.
Aramco enrolled in the SAP OpenEcosystem to develop industry solutions as part of the PartnerEdge Build program. Being an industry leader, Aramco has signed up for this partnership to leverage its industry expertise and utilize its experienced IT organization for developing innovative industry white spaces and diversifying its business scope.
Aramco also joined the SAP Advisory Council for Oil Gas and Energy wherein it will look to
actively contribute to shaping the SAP industry solutions strategy
To increase your awareness of SAP solutions, we published 6 articles, 17 videos and podcasts, and 20 blogs.
- Book release – “Business as Unusual”
The energy industry is transitioning to balance energy security with sustainability, resiliency, and affordability in response to stakeholder demands for low/no carbon energy. It is diversifying its energy product portfolios while implementing new business models to capture new revenue sources.
The pre-order of “Business as Unusual” is open on the SAP Press site.
Customers Stories 2022
- The International SAP Conference for Energy 17-19 May
It was a pleasure to meet you all in person during the International SAP Conference for Energy in Amsterdam. Three fully booked days driven by brilliant speakers, the hottest topics, such as Sustainability & Environment, Downstream, Upstream – Responsible Production, Consumer Experience with Energy Retailing, Energy Transition, Asset Management & Industry 4.0, and more, and engaging discussions with SAP Strategic Customers such as Shell, Chevron, Galp, Petrobras, Bharat Petroleum, Aker BP, Crescent Petroleum, Sempra… Read more and watch the recording
- ASUG Best Practices Conference for Oil, Gas, and Energy 12-14 September
This year SAP and ASUG collaborated once again to provide the Best Practices Conference for Oil, Gas, and Energy. It was held on September 12 – 14, 2022, at the Hyatt Regency in downtown Houston, where 436 attendees gathered to hear inspiring and insightful keynotes from Shell, Suncor, Chevron, P66 and Geoffery Cann as well as, engaging and edifying sessions from other customers and partners. Get to know more and watch the recap
- ADIPEC 31st October – 3rd November
ADIPEC conference Hosted by the Abu Dhabi National Oil Company (ADNOC), ADIPEC is the world’s most influential gathering for energy industry professionals. As in previous editions, SAP participated in this annual event, along with the collaboration of 8 Partners, from October 31st until November 3rd, in Hall 13, Booth 13570. During the 4-day conference, our SAP industry leaders had the opportunity to discuss with customers how to accelerate the energy transition, unlock real value in a decarbonized future, and showcase ground-breaking technologies.
The event acted as a catalyst to reignite existing relationships and forge new ones with multiple accounts, who were exhibiting and attending. SAP Executives had the opportunity to have C-Level engagements with Strategic Customers such as Energen, ENI, ADNOC, ENOC, BOREALIS, SASREF, SIPCHEM, TAQA, OQ, PDO
- The International SAP Conference for Energy–18 – 20 April 2023 – Basel, Switzerland
- ASUG (Americas SAP Users Group) Best Practices Conference for Oil, Gas, and Energy – 13–15 September 2023 – Hyatt Regency Dallas
- ADIPEC (Abu Dhabi International Petroleum Exhibition and Conference) – 2-5 October 2023 – Abu Dhabi, UAE