We interviewed Tijelino Bravo, who provided an overview of how automation, information technology, and telecommunications have transformed the way the oil industry operates and have made it easier to manage and control. Throughout the interview, he emphasized the need for significant investment in the sector.
He began by describing what is known as AIT within the oil industry in Venezuela: It is the integration of different functions—namely automation, information technology, and telecommunications—a concept that has been evolving for the past four or five decades.
He explains that it was developed in response to the need to integrate data collected during automation processes, which passes through information systems where applications transform the data into information and use telecommunications as the means to transport that data and/or information from one point to another.
This transformation of data into information makes it possible to integrate field systems with administrative systems—whether they be engineering, maintenance, financial, human resources, strategic, and so on. And the great value this offers is that, at the business level, you can begin to access highly valuable information for making sound decisions, almost in real time or within moments. For example, you can see how profitable a well, a field, or a particular process is because you have all the data online, which could change over time. This allows the business to make better decisions at that moment or later based on large volumes of data, events, and previous experiences.
Similarly, this integration from the business side—which encompassed variables from field processes, such as refining, LNG plants, production facilities, wells, etc., all the way to financial systems, provided a comprehensive view of the most critical processes and enabled the business to begin making informed decisions, because this not only incorporated field data but also operational data, maintenance data, and other types of data that were transformed into far more valuable insights.
So that’s basically what AIT is, and today, within the global oil industry, it’s a process that has become widely standardized. It may not be called AIT everywhere, but it’s the process of integrating field data through systems. And it provides valuable insights to the business, enabling sound decision-making.
1. Automation, data-driven insights, and technology are tools that streamline business operations. What are the most significant contributions these tools are currently making to the oil industry? Could you give us some examples of companies that are considered leaders in this field?
Automation collects data and analyzes it using a control strategy to generate and implement recommendations or actions regarding operational processes that ensure their optimal and safe operation. Essentially, this involves data on variables, but there are many types of applications in automation. We have data generated for predictive maintenance, to control production processes at different facilities through control strategies aimed at improving or optimizing them. Similarly, in drilling—combined with artificial intelligence and machine learning—predictive information can be generated during these processes; while drilling, you can anticipate what issues you might encounter as you proceed and how to avoid them. You can also use all of this for reservoir modeling. Ultimately, it all comes down to saving time, minimizing uncertainties, and even potentially preventing accidents.
In the field of automation, the Internet of Things (IoT) has been around for many years. A large number of sensors have been developed—many of them wireless—which makes them easier to implement and use. These sensors connect to gateways that transmit information to an edge cloud, which is a processing center located closer to where the sensors are deployed. There, the information is processed and immediately returned to the operators, since, through this processing—which involves IT applications—they can receive predictive information that allows them to take action regarding events that have occurred or are about to occur, thereby preventing them.
All of these measures can reduce downtime and improve and optimize facility operations. These tools also assist with inspection processes in high-risk areas, supporting preventive and predictive maintenance of the facilities.
The edge cloud, which is closest to the operations, is used to leverage its computing capabilities and quickly provide recommendations to stakeholders to aid in decision-making.
In the field of data operations automation, we’re also using what are known as digital twins, where replicas of physical assets are created to allow simulations to be run on those replicas without disrupting operations. You don’t have to use the actual physical asset—which is in operation and can’t be shut down—but rather use these replica models to simulate whatever you want about a process, and based on that, you obtain results and begin making decisions: what adjustments you can make, or you can simulate other process conditions to obtain information that optimizes them, schedule maintenance tasks, and build other predictive models. This practice is widely used in refining, petrochemicals, or plants with complex processes.
All of the above helps reduce operational risks and downtime. In addition, robotics is also used to inspect oil, gas, and multimodular pipelines.
Today, these technologies are used by all oil companies and service providers, which invest billions of dollars in automation powered by artificial intelligence.
When it comes to technology, there are always people or companies that lead the way and others that follow, depending on the technology. But everyone is involved because time has shown that it saves a significant amount of money and creates business and market opportunities.
2. In terms of exploration and production, could you tell us what are the major technological advancements that the top-ranked oil companies are currently implementing successfully?
There have been many advancements in drilling processes, reservoir analysis, and the interpretation and integration of seismic data from wells, as well as in separation, processing, and product conversion plants—all of this combined with artificial intelligence, where machine learning models are created to help predict much of future behavior. Exploration and production teams use these tools daily. I recall that a decade ago, my team built an artificial intelligence model (machine learning) that recommended the frequency of the variable-speed drive for each well in a specific field to optimize the oil-to-water ratio and maximize production.
Similarly, there are numerous applications in various refining and petrochemical processes, so this technology plays a crucial role not only in the oil, gas, and petrochemical industries, but also in finance, planning, marketing, sales, and other areas.
In my case, I was part of the technology team at the world’s second-largest financial institution (JPMorgan Chase). And to give you an idea of how important technology is in the financial industry, many say that this sector is more of a technology business than a financial one. This corporation invested sixteen billion dollars a year in technology. Recently, I read that twenty billion dollars are now invested annually, and around 50,000 employees work in this area—a figure far greater than the total number of employees at PDVSA when it was producing 3.3 million barrels per day.
3. Who should fund the adoption of these technologies in Venezuela—the government, private investment, or public-private partnerships? Are there successful models in other countries that could serve as a reference?
These investments would typically come from private companies that provide these services in partnership with the operating companies. In some cases, companies are competitors and do not share information about their success stories. However, there are service companies—such as Schlumberger, Halliburton, or others—that provide services to all operators, and they capitalize on the experience they gain by providing these services to multiple clients, incorporating it to improve the models they have developed.
These are very costly investments made by private companies, which use them to build their knowledge base for the continuous improvement of results.
There are successful models in various areas: exploration, production, and across different industries. In this regard, no one is lagging behind. Perhaps some are a little further ahead in certain areas than others, since the oil business generates revenue that allows companies today, more than ever, to leverage new technologies, and everyone is seeking to advance rapidly; however, one must be cautious about where to invest, as not all cases are successful. Artificial intelligence is a prime example of this today.
4. How do these developments affect workplace culture?
There is definitely an impact; all these advancements lead to more collaborative work and to solving problems as a team—what are known as cross-functional problems—which is the antithesis of siloed organizations (those where divisions or departments operate without sharing information, knowledge, or experiences). So, this changes the culture among employees, because it’s about collaboration, and sometimes they aren’t very open to that because it’s perceived as a personal threat. That’s why leadership has to foster this work culture as a win-win situation, where we all learn to become better professionals and produce better results.
There is also a culture of learning—of continuous self-directed learning—because this new technological landscape is evolving at breakneck speed. What I’ve observed in many companies is that formal training is becoming less common; instead, each person must take the initiative to learn on their own in their area of interest, supplemented by experimentation within their team.
There is increasingly more self-learning compared to formal training. And I can speak at least from more recent experiences. I’ve observed that in Anglo-Saxon culture, people are rarely willing to sit down with you to teach you (it’s not part of the culture); rather, they send you information for you to read and teach yourself, and use the work team to clarify specific questions.
5. How do they impact profitability and cost savings?
Any improvement or innovation in strategic processes undoubtedly impacts profitability; it is in refining where I have observed the most opportunities to make extensive use of many new technologies, including artificial intelligence. However, exploration and production, as well as transportation and distribution, offer countless opportunities that are easier to implement and less costly.
Similarly, gas liquid separation plants, gas compression plants, and gas treatment plants—which are also complex processes—offer significant opportunities to improve operational efficiency, safety, profitability, and cost reduction.
6. As part of the revival and revitalization of Venezuela’s energy industry, telecommunications and connectivity are emerging as key enablers for the growing business ecosystem surrounding it. However, this requires a connectivity infrastructure that Venezuela is still in the process of building. How wide is that gap today?
Telecommunications are undoubtedly a fundamental element because they transmit data from one place to another, and it is an area that requires significant investment. Previously, the oil industry in Venezuela made those investments because the areas where it operated were sparsely populated. Since these are large investments and there are few customers, private companies had little incentive to make them.
Once the oil industry was established and brought in people—workers, contractors—private companies were motivated to invest in that area. But it remains an issue, and there are areas where the oil industry operates that lack high population density. Therefore, we must seek projects through third parties to provide coverage, connect sensors to remote stations, and be able to collect all that data and upload it to the cloud.
In recent decades, Venezuela has lost the momentum it had built up in the development of telecommunications; furthermore, there has been a shift in the players within the sector, as well as a reduction in service options. There are new players, and questions remain regarding their cybersecurity processes and data confidentiality, which are priorities for the oil and petrochemical industry. Additionally, in some areas of the country and for certain services required by the industry, coverage is limited.
It is true that there is a gap, but there is also a great opportunity to create synergies between the needs of all private companies and commercial enterprises, to develop telecommunications networks and services that can collectively serve the various private companies set to arrive in Venezuela in the near future, as well as the general population, for whom staying connected is a top priority.
Based on a conversation I had with one of the largest telecommunications service providers in Venezuela, I observed that they have been working to expand their network and service portfolio; furthermore, it is clear that they are accelerating their investment plans in light of the expected growth in the country’s oil sector. However, there is a gap they are seeking to close, but that will take time, because implementing telecommunications systems and networks requires significant capital and time; therefore, there must be substantial collaboration between private companies, service providers, and the government as the owner and regulator of services and the radio spectrum.
7. The revival of Venezuela’s oil industry is not limited to crude oil extraction and production; it encompasses a range of specialized services: technical consulting, legal and regulatory advisory services, audits, contract management, and operational support. In the technology sector, we offer engineering services, implementation of new solutions, support, and maintenance, among others. Many of these services can now be provided remotely and digitally. How critical is telecommunications infrastructure to the development of this business ecosystem in Venezuela?
Technology has certainly enabled remote work for many years, and this was particularly highlighted during the COVID-19 pandemic; a large portion of tech jobs became remote, although in recent times companies have begun to reintroduce partial or full on-site work for certain roles. Of course, this creates a cultural shift, because it can sometimes run counter to collaborative work—since you’re not with people in the office, where it’s easier to approach someone and share information. But video conferencing is encouraged, and ultimately it’s a matter of culture: people need to get used to working as a team using different technologies. In all these types of remote work, telecommunications and collaboration solutions play an enabling role.
We should promote environments where collaborative remote work—whether part-time or full-time—is effective. While this is a cultural and generational issue, it is a highly beneficial reality for certain business sectors and professional fields, provided we leverage its advantages to enhance results.
8. When we talk about connectivity to support an ecosystem of remote services in the oil industry, what are the most critical bottlenecks in Venezuela today: coverage in energy-related areas, signal quality and stability, available bandwidth, network redundancy, or coverage in remote regions?
In Venezuela, the telecommunications services ecosystem has its limitations, at least in the area of data transmission. People are still talking about 4G technology; few service providers have implemented 5G, which offers lower latency and higher bandwidth—factors that are important for certain applications running on public clouds and edge clouds.
The limitations of telecommunications services continue to affect geographically remote areas where the industry has facilities and/or production, although the services required there do not need high bandwidths and are not very sensitive to latency. Currently, the satellite communication services recently authorized in Venezuela can meet a significant portion of these needs.
9. What specific public policy decision or infrastructure investment would have the greatest impact on aligning the development of telecommunications with the needs of Venezuela’s energy sector?
CONATEL, the agency that regulates telecommunications and the telecommunications spectrum in Venezuela, has granted several spectrum licenses to develop new services; it is now up to operators and service providers to make investments based on market demand.
In the energy sector—which includes not only oil, gas, and petrochemicals, but also electricity generation, transmission, and distribution, as well as other market segments—there must be efforts to create synergies through shared services to meet needs and expand the customer base for these services, especially in areas with low population density.
A simple and practical example would be to provide telemetry and observability for a group of oil production wells in these remote areas using wireless sensors connected to a telecommunications gateway, where well variables are sent to an edge cloud for processing, analysis, and to issue recommendations that are sent to an operator or professionals to take corrective, preventive, or optimization actions, or for the process to self-regulate. In this case, it is a process that does not require an immediate response, which is why the information may take minutes to be sent, processed, and reported. There are cases where satellite communication is not the best type of telecommunications for processes requiring constant monitoring, such as refining, petrochemical, or other processing plants, where much more complex processes—controlled via closed-loop monitoring of pressures, temperatures, etc.—require very rapid analysis, recommendations, decisions, and actions to ensure the quality and safety of such processes.
The views expressed by Tijelino Bravo are of his personal ownership and responsibility, and do not necessarily reflect the position of PDVSA Ad Hoc.
