Given that big data is one of the hottest topics in business today and that the energy commodities sector is a star performer in the US economy, there is a surprising lack of public engagement on the role of big data in energy commodities production, use, trading and regulation.
I am chair of the steering committee organizing our Evening Series panel on Commodities and Energy data, scheduled for Tuesday June 17, 2014. We’ve had a lot of questions about how we see big data playing out in the energy space, and why analysts, bankers, operators and regulators should see it as important.
In response, I’ve written a lengthy piece that can be viewed here: Creating a Big Data “safe space” for the energy sector. There are lots of ways to view this topic, and we’ve had healthy debate thrive within the New York Energy Week steering committee for this event and among the NYEW community. I welcome discussion online and at our upcoming forum, about which much more can be learned here.
In case you don’t have time for a longread, here are some highlights:
“The oil industry was one of the original “smart” industries, but its tradition of leadership in using data to improve operations, enhance security and serve markets has been diminished over time by the counterintuitive incentives imposed by regulators.”
“As the sector transforms in response to a supply-side revolution and prepares to engage with global markets more directly through exports, the industry should be freed to build the next generation of infrastructure with efficient markets, security and consumer needs in mind.”
“If the forecasts are for big data to proliferate, and the consensus is that oil companies have done too little to date to prepare for it, the question is why a sector with a strong technological bent and a tradition of data leadership has not embraced the Big Data Revolution.”
“The industry needs to find ways to make and measure small errors without fear of massive regulatory implications (and the lawsuits that accompany them), or it will continue to founder in the face of shifting market needs and will wait for large and potentially-preventable failures to occur before acting.”
“While no one would sensibly argue for sweeping deregulation of the oil industry, a more constructive dialogue between the major players in the sector, government representatives and broader stakeholders in an atmosphere of learning rather than accusation is needed. Oil companies should be able to go about that process of discovery and learning without fear that any new problem implies a matching new regulatory process.”
Peter Gardett is a Founding Board Member of New York Energy Week, Steering Committee Chair of the Commodities and Energy Data event and Moderator for the Oil and Gas Breakfast.
