 Pedro is going to look at the challenges facing the oil and gas industry and difficult challenges facing oil and gas industry and the open group initiative that is seeking to help all those organizations address that so Pedro great to see you and I will hand over to you. Yes, Steve. Hello, everyone. I'm Pedro Vera. I work for Petrobras and they'll use the next minutes to talk about some key challenges of the oil and gas industry. It's way to digital. And finally, how these two things are deeply connected. Okay. There's a view expressed disclaimer before we start. I'd like you to please be attention to. Okay, this is our agenda. I'm going to start with the objective of this presentation. Discuss the current scenario of oil and gas industry. It's challenges and digital needs the path to digital. And finally, it's participation in the open group. We want to present more than a scenario. We want to present a perspective. The perspective that beyond the crisis and the virus focus on opportunity. Opportunity to build an efficient ecosystem around the oil and gas industry to find the gold. The black goat data data that allows not only a safer and more efficient operation, but also gives energy to the necessary transformations in the world. Energy to transform to give energy to a transformed world. And that's it. I want you to consider you may have a role in this, even and especially if you don't work for the oil and gas sector. Let's take a look at the oil and gas scenario. Last week, we saw the craziest period for oil prices in history, especially in the US. The global market of oil is suffering very much with a severe decrease in demand due to COVID-19 lockdowns and considerable increase include oil inventories. Another component in this equation was the oil price for war. In the last March by Saudi Arabia responding to Russia's refusal to reduce its oil production to hold prices of crude oil. As we can see, in just two months, the brand crude oil price dropped from 50, 60 to 20, 30 dollars. The question everyone wants to be answered is when is the oil barrel price going to return to normal? We don't know when, but we certainly know when not. Most recent studies and projections show that the oil price won't be back to 50, 60 dollar plateau for at least one year from now. Here we can see an updated study about the global oil demand recovery, considering an effective prevention and control scenario for COVID-19. The red curve shows the valley in April when we'll have approximately a 30 million variance per day decrease in the global oil demand. Reaching 20 million decrease in June and 10 million decrease just by the end of this year. Just to note, in the beginning of this month, OPEC and other oil producing countries cut the production in nearly 10 million barrels a day. And that's almost 25 percent of OPEC total production. That's why the inventories remain high and prices low. But what does it mean when we say the price is high or low? Compared to what? This is called the Great Even Price. Simply, it is the value of an equivalent burial of crude oil in which companies have no profit or loss. This value depends on the number of factors and it's quite variable around the world. The x-axis shows the production capacity in millions of barrels per day. The y-axis is the break-even price range. Rectangles are different regions or forms of production around the world. The first thing we can see is that Saudi Arabia's break-even price mean is something around $10 while U.S. tight oil is around $50. But it can be as cheap as Saudi Arabia's in some fields, the lower part of the retail. From this kind of graph, you can see the impact of oil price in the viability of oil and gas business in many places. In general, the physical assets of oil and gas industry are very analog. That is, have a low digitalization. Why? Well, we have a long life cycle for our production facilities. It can reach 10 years before producing and 34 years producing oil. Which means that we have today operating units that were designed 30, 40, even 30 years ago. As you can imagine, especially for those in IT industry, even with revamps and updates, it is very likely that we have legacy and proprietary technologies in these other plants, which however need to work safely and reliably. Although newer green field projects already incorporate digital solutions in times of uncertainty, it may be needed to consider expanding the lifetime of brownfield plants. Postponing investments until it's possible to have a clear view of the new business risks. Digital rely on information available. When you talk about industrial plants, it's synonym of instrumentation data available through the automation system. Other plants often don't offer all the needed data, making it difficult to fully go digital. And finally, as it is a very complex industry, it is natural that the knowledge silos that quickly become data silos that limit information exchange internally and externally to the companies. Here's a study of several sectors in the digital maturity in several areas considered. We will focus on numbers two and four, which represent respectively the potential to further digitize the physical assets and the potential to improve the digitization of business to business relationships, which are quite intense in the oil and gas industry. As we can see, the oil and gas sector is mapped with the very low relative digitization in these two areas, having however good maternity in others, such as spending on digital training for their employees. Now that we have a general idea of the oil and gas scenario, we can discuss some challenges, especially for the upstream offshore top sites. I've divided the key challenges for the oil and gas industry into five categories. Safety and security, cost, productivity, integration and business. Safety is the absolute priority of oil and gas. The main challenge is how they use digital to improve health, safety and environment performance from design to operations. Since we will expect more connected plans, cybersecurity turns into an important issue because at the end of the day, it is strictly linked to safety. Everybody remembers this Tuxnet cyber attack ten years ago in Irano. To reduce costs, there are several initiatives. Three of them are listed here. Increase exploration success rate. Today, it's around 40% in the world, 90% in Brazilian pre-salt. Reduce total project time from exploration to startup, thus decreasing the payback period for the investment, and decrease supply and logistics costs. The next pillar is productivity, where we have the challenges of increasing and sustaining the operational efficiency and decreasing the units downtime. The other focus must also be on the engineering. Not just a fast configurable design, but a top quality technical product to minimize the cost of reworking the project that can reach 5% of total cost of units. There are also integration opportunities, space to improve internal and external BTB sectors integration, in terms of effective information exchange and reduce vendor technology dependency. There is proprietary systems and solutions. Finally, we have the business spine. Improve on-time decision-making capabilities based on reliable information. Guarantee continuous training in digital techniques and procedures for new and existing employees. And improve effectiveness and agility, the business repositioning with a robust change management framework, considering processes, technology, and people. At last, create and sustain a future of bimodal model. Modeling the business to seek the balance between operations and innovation. We saw the scenario, the challenges or opportunities for the oil and gas industry. And now let's take a quick look at the roadmap of possible digital solutions to address these issues. The first thing covering the first two pillars, as always, is safer and better operations. Automatic diagnostics, hybrid tweens. There is physically based but data driven with online closed loop simulations. Opening path to congestion based and proactive maintenance. And so zero and planned downtime and remote operations. Then, focusing on open and transparent information flow in secure vendor neutral systems and data formats. Data-centric designs, processes and systems. And high value index data with associated metadata and microservices for interoperability and reusability. These open data solutions work as a very efficient digital enablers. And then a digital ready enterprise where we can talk about automated configurable project and engineering design development. A digital framework to guide training and practices to be able to create and sustain an agile digital innovation ecosystem with business to business and customer relations. And finally, a digital ready enterprise architecture framework to support the new business dynamics during the digital age. The oil and gas companies founded and conduct two forums in the open group. The OPA, there is the open process automation forum. And the OSDU, open subsurface data universe. The question is, why? What are they looking for? As you can see, I put in tug and tug that is the oil and gas in the open group. Hope you liked it. The OPA is making possible not just the standardization of automation architecture for the process plans, but it's also a huge enabler for digital in this plan. For all the phases from conceptual design to decommissioning. Similar work is being done to subsurface data exploration wells reservoir by OSDU. Not just creating a common open data format and exchange, but supporting an open application layer that will make possible for anyone to develop creative solutions using the data generating value for the industry. Once all this data is available, we can apply digital techniques. For example, AI, big data analytics to cross analyze it and return the results to the operations. For example, optimizing the operations, suggesting procedures, automating solutions, predicting shutdowns, helping to plane maintenance, consolidating information for business decision making, etc. Obviously, to realize this digital solutions would have to have a trained and certified workforce in digital principles and techniques internally to companies. That's where another product from the open group enters the DP box digital practitioners body of knowledge. We seek so many things at the same time, optimization, open market, interoperability, open data connectivity, value, information for decision standardization, digital technologies, innovative solutions, open development, predictability, on time solutions, efficiency, collaboration. We want to find the oil hidden in the data. Because data is the new path to energy. Any ready to join us. I like to thank the colleagues from Petrobras that helped me revise this presentation under some Russia. I leave you with my contact information. All the info is also encoded in the QR code on the right. Just point and shoot the QR please. Thank you and have a nice event and stay safe. Thank you, Pedro. Thank you very much. Yeah, the oil and gas in the open group paint to do for the open group. Thank you. Very insightful presentation and it's great to set the context first, does she did. And then the specific challenges for the industry and then and then what we're doing about it so. We've got some questions coming in so I'm not going to and some thanks coming in on the question. Q&A channel as well so I think people are enjoying what you what you said. So the first question for you Pedro. How has the oil and gas industry accommodated government regulations to reduce. Federal and diesel vehicles and the move to electric. What part will digital play to reduce domestic demand. Two parts there. Okay. I think we'll see in the next 30 or 40 years. A shift in the energy matrix. The shift is not because the oil is going to end. There's their soy for 200 years. But that is the other the other sources of energy did not end, but we have shifted from them. But the, the, the thing is, the oil and gas industry is a capital expand capital intensive industry. So probably this industry is going to make the shift. The question is how. How is the oil and gas industry helping making the shift to green energy green energy matrix or renewable energies. Not only by the force of regulations as you, as you said, but. Also for a social pressure around the world, I think this is the, the most significant force. So the industry is already accommodating the regulations for this shift, but the, I can see that the, the industry is preparing the shift for. 20 years from now, 15, 20 years, because the metric is not going to change. We have a lot of energy in hydro cabinets. There is that cannot be instantly replaced by other kinds of energy. So the economy cannot go by cannot do that shift without the help of oil and gas industry and it can be done instantly. And the, the second part of your question is how, what is the role that digital place in this check. I think we do domestic demand specifically as well, Pedro. Yeah. Yes, we just domestic demands. It's going to end. This is not a, it's a, it's a temporary. We are, we are seeing that the, the demands domestic and international is going to return to normal in one year or something like that. That's the, the long view. We can rely on the reduction of demand. So digital is the, it's the, it's the key for the shift. Because we have first, we have to operate our units. More safely and less people board. And this is going to make the, the needed cash and investment for our shift to another matrix. So is the key or the roadmap or the way for the energy shift. I really don't see the reduce in demand as a long term issue. And of course standards are key as well as you were talking about. It's a question somebody speaking from the heart by the look of it. My experience of oil and gas was that it was second class citizens in comparison to geologists and petrochemical engineers. How does digital work within this bias towards traditional engineers. Yeah, you're right. I think it's the same thing all around the world. I wouldn't say the kind of second class citizens, but yes, geologists, chemical engineers. There are kings in the oil and gas industry, but it's going to change because we as we see the oil and gas industry. They can do more with the same. So we have to increase, for example, the exploration success from 40% to, for example, 50 or 60%. For example, one day, if you rent a rig for one day, it's $400,000 a day. So if you can increase that success rate by using AI, for example, helping the geologists to analyze the data. Or making decisions or pre making decisions for revision for the geologists or geophysics. The IT is going to enter the core business of oil and gas industry. And I think they will be especially the data scientists will be promoted to first class citizens. Great to hear, great to hear. And we have a data science workshop tomorrow as part of this event. So I'll give a give a plug to later on. Next question. You talked about the open subsurface data universe forum in the open group. So you have the potential to disrupt suppliers of analytic services to the oil and gas industry. Do you see current suppliers shifting to adopt you or new entrants coming in first or maybe both. I was in Houston in 2018. The kickoff meeting of always do led by shell. Yeah, the, the OSDU went for the first for the same path of OPA two or three years before. Yeah, it started with the owners. There is the majors. Petrobras was not in the OPA, but it was the OSDU. And this is the very is a very important point because the owners have the money. The owners have the needs. So the owner say, Oh, we need an open data standard. We need an open application layer standard. We need an open standard for the automation architecture in our process plans. We do need it. We don't want to pay obsolescence. We don't want to pay a specific supplier with proprietary technology anymore. We don't want we can't do that more because if you want to go digital. We have to have open data to make the data processing possible for an open application layer or an open store like Google Play or Apple store or something like that. You can develop an application for the wine gas industry. It relies on open information flow. So because of the formation of these two groups, the OPA and the OSDU being the owners conducting, I think that both things are going to happen. Both things are going to happen. Current suppliers will be there will be no choice for them. The owners are going to buy in some years just from the suppliers that is are capable of of supplying that open data or open application format. So they don't have a choice to do that. But I can see that the suppliers are participating very well in this forum. So yes, the suppliers are shifting to adopt OSDU and OPA and also new entrants are coming in first. I can I can say here that Intel, that is a long term supplier for IT industry processors, etc. is this beginning to open a sector dedicated to OPA to process automation. That's a very new thing that I've never seen before. It's a new entrant, but it's an old industry. So yes, both things are happening because of the conduction of this forest being done by the owners. Right. And you're right. It's an mentioning Intel is no coincidence that if just stepped up there and participation in the open group to platinum member status are highest level as well. And they are getting more active. So that's great to see. And I'll give a plug for the open group life site again on there. You will see a few videos and I'm afraid they've got me in them. So there'll be no no awards for best actor or anything like that. But the content and the story in those videos is what Pedro has been talking about. And actually goes back to our early work in the open group facing sort of with federal avionics and then open process automation. There's a there's a chain that fundamentally starts with a customer need and a desire to change the way that an industry recures its systems and operates for the next generation. And the ones that Pedro you mentioned are the latest in that line that you can trace it right back. It works when the customers have a have a demand and get together, then suppliers listen and participate actively. So, Pedro, we're out of time. There are a few questions coming in that I've seen a couple around cloud. If you get the opportunity Pedro and we're able to go in and answer some of those that would be appreciated. But in the meantime, great to virtually see you and I look forward to seeing you in person when we're able to and a virtual round of applause for Pedro Vieira. Thank you, Pedro.