1、KPMG I downOil and Gas MagazineSecond editionArticles include:Delivering on digitalGet more from your twinTax in a digital worldCustomer,insights and loyaltyForewordDigital is the antidote to disruption:Why oil&gas companies must speed up digital transformationBy Jonathon Peacock,Global Sector Lead,

2、Oil and Gas,KPMG International 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.The oil&gas sector is entering a period of ongoing disruption.Companies are being asked to reinvent themselves from the

3、 subsurface up.This can best be characterized by the following:Performance is being assessed by new measures and metrics.They are facing massive changes in the tax and regulatory environments they operate in.They are responding to rapidly evolving customer and stakeholder expectations.And they are d

4、oing so against a backdrop of significant socioeconomic and geopolitical uncertainty.Digital solutions are one of the potential antidotes to disruption,if applied correctly,in that they can:provide oil&gas companies with the data they need to make strategic and operational decisions.give them the ag

5、ility and flexibility to adapt to changing market conditions.offer the tools to create and execute new business models.form the foundations of the future of work.It can help to reduce risk,enhance insight and drive efficiency.deliver the agility that is needed when facing an uncertain future.Lets sh

6、ow you how In this edition of Drilling Down magazine,we explore some of the use cases that are driving the urgency of the digital transformation in the oil&gas sector.We explore how digital is helping to build customer loyalty and insights as oil&gas companies seek to diversify into new business mod

7、els.We examine how digital is helping oil&gas tax functions become more efficient and more strategic as tax moves up the oil&gas agenda.We look at how digital twins are driving operational efficiency and value in virtually every part of the oil&gas value chain.Recognizing the gap between digital amb

8、ition and reality,this edition of Drilling Down also takes a more holistic view to exploring some of the unique barriers and opportunities facing oil&gas companies as they strive to digitize their businesses.And we offer some examples and case studies from KPMG member firms that work around the worl

9、d to try to demonstrate how the leaders are overcoming the barriers and embracing the opportunities of digital.Reading between the lines As you read the various articles,several central themes should emerge.The first and most obvious big theme is the need for reliable,integrated and accessible data.

10、Data is the lifeblood of digital.It feeds the digital tools.It leads to new insights.And it can deliver the visibility that oil&gas companies need to drive efficiency and expand into new markets.Oil&gas leaders should start thinking of data like they do molecules assets that can be refined to create

11、 products and competitive advantage.The second big theme is around skills and capabilities.Indeed,I believe Human Capital will be the next big battleground for oil&gas companies.In part,this is because the oil&gas workforce is shrinking as experienced professionals retire and new talent is pulled to

12、ward other industries.At the same time,as oil&gas companies become increasingly digital,new skills and talent will be required and older skills may need updating.Securing,upskilling and developing this talent will need to be high on the transformation agenda.The third theme that emerges is around pu

13、rpose and values.Oil&gas companies should have a clear vision of how they expect to play in the new energy environment.They will need to state their ambitions around net zero clearly not only for their customers and stakeholders but also to retain key talent and then demonstrate their progress.They

14、will likely need to put ESG considerations at the core of their strategic planning,reducing the risks but also finding opportunities.Understanding the intersections of purpose and profit will be critical.Why digital matters If you thought the past few years were disruptive,just wait.I believe we hav

15、e only seen the sparks of disruption;and the fundamental transformation they have ignited are quickly becoming burning platforms for change.Oil&gas companies should be agile if they hope to survive.And a key way to achieve that is through digital.Digital is a potentially strong antidote to disruptio

16、n and I suggest oil&gas leaders start to rapidly prioritize investment and deploy digital capability across the sector.I hope this publication inspires industry decision-makers to double down on their efforts to drive digital transformation throughout their enterprises and ecosystems.To learn more a

17、bout the topics raised here or discuss your unique digital transformation opportunities,I encourage you to contact your local KPMG member firm or any of the authors listed in this publication.Sincerely,Jonathon Peacock Global Sector Lead,Oil&Gas KPMG International 2023 Copyright owned by one or more

18、 of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.34Whats inside05Delivering on digital Activating the transformation14Get more from your twin The new epoch of digital twinning24Tax in a digital world Transform tax,transform value34Cus

19、tomers,insights and loyalty How to grow the downstream051424 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Delivering on digitalActivating the transformationBy Jeff Monk,Chief Marketing Officer,US

20、 Energy Industry,Microsoft Corporation;Monica Ortiz,Manager,KPMG in the US;Jonathon Peacock,Global Sector Lead,Oil and Gas,KPMG International;and Rohit Ravindran,Digital Platforms Lead,KPMG in the US.5Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG Internati

21、onal entities provide no services to clients.All rights reserved.The shift from hydrocarbons to electrons is underway.And many energy companies know they need to achieve a digital transformation to survive and thrive in the new energy environment.The challenges are significant.But so,too,are the opp

22、ortunities.6Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Investors expect growth.Stakeholders are calling for transition.Customers want diversification.Employees are focused on purp

23、ose.And regulators are watching everything.One of the critical ways for energy companies to rise above these pressures and thrive is through digital transformation.Dont be fooled:digital transformation isnt just about technology.It is also about doing things better,getting better insights,delivering

24、 better outcomes and building resilience for the future.Its about knitting together the right capabilities,solutions,models and yes technology to deliver on your ambitions for the future.Its about enabling your organization to act with agility as it evolves and building the foundations for growth.If

25、 you are starting with technology,you are looking at the problem from the wrong angle.The key here is to consider what you want to be in the future and what digital capabilities your organization will require to get you there.If you are contemplating growing your downstream and forecourt business,yo

26、u will need key insights into your customers,their needs and expectations.If your plan includes diversifying into businesses in adjacent sectors likely broadening your value chain from hydrocarbons to electrons you may want to ensure you are making effective use of your data to help manage that comp

27、lexity and drive those investment decisions.At the same time,your strategy probably involves doing what you do today(i.e.,the upstream and midstream parts of the business)more efficiently and effectively,which requires enhanced operational awareness and control.Now go beyond your business models to

28、look at your broader ambitions.As the next chapter argues,digital transformation is a vital enabler of the energy transition and ESG agenda.If you are a purpose-led organization,your customers,employees and communities expect to see you take action on your promises,to back that action up with reliab

29、le data,and to report.Even the fundamental ambition of simply remaining compliant with regulatory and tax requirements increasingly requires enhanced digital capabilities.Our view suggests that digital transformation will be needed to execute all aspects of an energy companys future strategies.And i

30、t will likely be critical to helping manage the risks and uncertainties of the future.Yet building these capabilities,solutions,models and technology ecosystems takes time and experience.You should think about them early,in an integrated fashion and with a clear vision of what you want to be and how

31、 you want to be perceived.From hydrocarbon to electron Trade,market access and supply chain disruptions.A digital business can conduct meaningful scenario planning,adjust to changes in trade agreements,and enjoy a deeper insight into its supply chain so it can problem-solve early.A rocky energy tran

32、sformation.Digital energy companies see the risks and opportunities and can quickly pivot to accelerate progress or take advantage of new technologies and solutions.Cybersecurity and governance chaos.An intelligent digital transformation roadmap puts cybersecurity and governance front and center.It

33、works to provide organizations with the data they need to remain in control of their operations and data.In late 2021,the Eurasia Group and KPMG articulated some big risks facing the world in 2022.Lets look at a few and assess the value of digitalHow can digital transformation help solve my big risk

34、s?7Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.1.Reduced planning cycle time,process variance and downtime=reduced routine flaring,improved site remediation and better managed ener

35、gy consumption.2.Enhanced demand intelligence,asset health and product design=a more balanced supply and demand,reduced upset conditions,and better product innovation.3.Improved raw material handling,dispatch and route planning and asset integrity=faster leak detection,proactive leak mitigation and

36、reduced emissions.4.Optimized resource management,asset performance and stoppages=reduced process flaring,more rapid intervention and preventative measures.Where are the linkages?As energy companies look to meet their ambitious Net Zero goals,digital is increasingly seen as the lynchpin.Digital can

37、be a key enabler of the energy transition;it can help drive and be a mechanism for transparency.For example,consider how digital can help your organization reduce direct emissions.By digitally preparing for service and maintenance calls before dispatch,energy companies can reduce truck rolls and was

38、te at the frontline.Digital can improve planning cycle times and remove process variances that often lead to routine flaring(a significant cause of emissions).Digital can help accelerate leak detection and mitigation,reduce upset conditions,and help manage energy consumption.Or consider how digital

39、can help drive indirect(or Scope 2)emissions.With the right data and insights,supply chains can be optimized.Waste can be removed from the process.And cleaner,greener suppliers and supply routes can be found.Digital can speed up the requisitioning process and ensure supplies are available at the rig

40、ht time,in the right place,and for the right people.And it can allow energy companies to better track their climate change efforts(and those of their suppliers and suppliers suppliers)down the value chain.Digital can also have a massive impact on your Scope 3 emissions.Moving from in-house servers t

41、o the cloud doesnt just move emissions from Scope 1 to Scope 3;it can also help eliminate them.Microsoft Azure cloud1 is offering energy companies with a more sustainable set of products and technologies.Indeed,there is a wide range of ways that data and digital can help drive the ESG agenda for ene

42、rgy.When Microsoft and KPMG firms work with clients,they often help them understand and quantify the climate impact of activities not usually considered within the traditional sustainability envelope.KPMG firms and Microsoft show decision-makers how ERP modernization can allow them to integrate thei

43、r data and improve their governance and reporting around climate impacts.The goal is to help them see the link between connected assets,operations,and data.They are shown how efficiency,skills enhancement,and collaboration can enhance the impact of their digital workforce on climate activity.The lin

44、es between ESG compliance,reporting,and data are clearly drawn.Digital is the lynchpin to meeting your climate and Net Zero goals.It should be at the center of your strategy.How digital delivers on sustainability1 Microsoft,Microsoft will be carbon negative by 20308Drilling down 2023 Copyright owned

45、 by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.If digital is the conduit,data is the liquid that flows through it.There is no use for digital without data.And the wrong data or disconnected and unstructured data can m

46、ake a digital strategy ineffective.Simply put,at the center of every great digital strategy is great data.But for the value of digital to be achieved and for use cases to be fully realized,data must be accessible,trustworthy and secure.It needs to flow to the right points,integrate with other data s

47、ources and deliver actionable insights.The problem is that most energy data currently in existence(and there is a lot of it)is locked up in siloes,stuck in the supply chain and purposefully separated between assets and systems.This inability to harness operational and IT data hinders the companys ef

48、forts to modernize its organizations,enhance its processes and improve supply chain collaboration.It reduces the returns energy companies can reap from their investments.It erodes decision-making confidence and creates multiple versions of the truth.It undermines growth.A well-planned digital transf

49、ormation starts with the data.And when Microsoft and KPMG firms work with clients in the energy sector,the focus is often on helping organizations achieve high-fidelity,real-time and trustable data and insights from their digital investments.Cloud technology can play a crucial role here.Cloud soluti

50、ons like Microsoft Azure can bring data from disparate systems together,provide the platform upon which it can be analyzed,deliver the processing capabilities and governance controls required,and do it all within tried and tested industry solutions.The cloud also allows organizations to see their da

51、ta across complex systems new and legacy.If your organization is already migrating systems to the cloud(perhaps as part of an ERP modernization initiative),this is your opportunity to get your arms around your data.Its also your opportunity to understand your data needs,assess your data quality and

52、integrate new sources of data that can provide even deeper insights(such as sensors,supplier data or climate data).The good news is that there are organizations like Microsoft and KPMG with deep experience helping similar organizations get their arms around their data.Indeed,the data challenge can q

53、uickly become a data opportunity with the right connections.The next chapter explains how.Getting your arms around the data9Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.You have an

54、aggressive digital agenda.But do you have the right in-house skills,capabilities,people and talent to deliver?Digital transformation is a massive and complex project.And KPMGs experience suggests that only one-in-three transformation projects deliver on their value expectations.It requires a wide ra

55、nge of new skills and job profiles,including data scientists,software engineers,agile coaches,cybersecurity professionals and DevOps engineers.It involves energy companies stitching together a range of different systems and technologies some new,some legacy.It takes smart change management and trans

56、formation skills to drive use and adoption.It also requires existing employees to upskill and learn new digital capabilities.At the same time,no organization wants to reinvent the wheel and nor should they.The world is filled with best practices,frameworks and solution sets that have been tried and

57、tested in other organizations,situations and environments.The trick is to identify and apply the right ones for your organization.The problem is that in todays tight human-capital environment recruiting,developing and retaining experienced,skilled talent and capabilities is challenging.Energy compan

58、ies compete against virtually every other company in the world for digital skills.Finding enough of the sort that meets your specific needs may not be easy.If you cant buy or build it,youll need to partner.And here,too,KPMG firms and Microsoft have seen significant changes in the market.The digital

59、transformation agenda is being delivered by creating ecosystems of players that work together,invest together and innovate to deliver on the digital transformation agenda,rather than relying on one-on-one tie-ups.Its about bringing together diverse perspectives,new capabilities and additional capaci

60、ty to help the organization meet its goals.KPMG firms and Microsoft often work together at the cornerstone of these collaborations.In the energy sector,the KPMG and Microsoft alliance enables us to identify and integrate players with proven capabilities and solution sets and help ensure alignment,co

61、llaboration,and delivering the value of digital by working closely together.No organization can likely navigate the scale of change required by digital transformation alone.Therefore,the real challenge facing energy companies is finding the right help with the right capabilities and skills to get yo

62、u where you want to be.It takes an ecosystem ConnectedPoweredTrustedIndustry-specific componentsMicrosoft 365Dynamics 365Developer Tools Microsoft AzureIdentity,security,management,and compliancePower PlatformIndustry aligned solutions that map to the KPMG Technology Blueprints for the 8 Connected C

63、apabilities across IndustriesKPMG Powered Enterprise enabled by Microsoft Dynamics 365 and Power Platform,an integrated approach fuelled by business process and technology accelerators to facilitate rapid and effective functional transformation.Solutions,Knowledge and Support to manage risk and regu

64、lation in your transformation journey,providing confidence that enables responsible growth,bold innovation and high performance.10Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.One co

65、mpromised password thats all it took to knock out 5,000 miles of gas pipeline.2 Ransomware was installed.Critical business applications became unresponsive.The owner had no choice but to proactively shut down their operations.Its a horror story no energy company wants to experience.And its a risk th

66、at no government or regulator wants to leave unmitigated.The topic of energy infrastructure security is top of mind for politicians and policymakers around the world.From ransomware attacks to suspected nation-state hacks,regulators and governments are enacting a range of policies to ensure their cr

67、itical infrastructure is resilient,safe and secure.The path to digitization must be a safe one.Yet there is natural tension.On the one hand,energy companies should open up their data,integrate it across IT and OT,and make it accessible across the ecosystem.But on the other hand,they are ultimately r

68、esponsible for keeping that data safe and secure.The tendency is to fall on the side of risk mitigation.Energy leaders would be better served to see cyber as an opportunity as much as a risk.A robust and defensible cyber position gives the organization the confidence it needs to bring important data

69、 sets together.It allows the organization to be more agile,aggressive when entering new markets,and competitive when working with customers.A robust cyber stance isnt just about protecting the organization from risks and fines;its about preparing the business to grow and thrive.As such,energy compan

70、ies should think carefully about how cyber is embedded into their digital transformation plans and operating models.They will want to select partners that can offer high levels of security.And they should consider how they can get ahead of cyber risks and requirements to ensure the value of the digi

71、tal transformation is delivered.Seeing the upside of cyber Energy companies should consider reinventing their business models with a sense of urgency Digital transformation is required to deliver on the expectations of investors,employees and customers Start by focusing on the big risks and opportun

72、ities climate change,cyber,cloud migration and energy transition,for example Dont underestimate the value and importance of reliable,high-fidelity,real-time data Digital transformation is a massive undertaking,but there are best practices,solutions and partners that can help.Key takeaways2 Bloomberg

73、,Hackers Breached Colonial Pipeline Using Compromised Password,June 2021.11Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.KPMG and Microsoft combine advanced technologies,industry ins

74、ight,creative thinking,and established excellence in advising on complex global business issues to help transform your company in the areas most critical to your prosperity and ongoing sustainable success.The strong portfolio of KPMG and Microsoft alliance offerings can help you address these challe

75、nges by building applications,automating manual processes,and continuously analyzing information to help reduce the risk of errors and increase your ability to make smart decisions.As you embark on your digital transformation journey,you can rely on KPMG professionals and our business-first approach

76、 to deliver effective Microsoft technology-based solutions to help you achieve meaningful and sustainable business outcomes.KPMG and MicrosoftThe strong portfolio of KPMG and Microsoft alliance offerings can help you address these challenges by building applications,automating manual processes,and c

77、ontinuously analyzing information to help reduce the risk of errors and increase your ability to make smart decisions.12Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.About the author

78、sBased in Houston,Jeff is a 25-year veteran of the Energy Industry and has held operational and commercial leadership roles as the US Region Director for Siemens Energy,Global Director of Oil&Gas for GE Energys Aeroderivative Gas Turbine business,and as VP of Strategic Accounts for GE Oil&Gas and it

79、s subsidiaries.Currently Jeff leads Microsofts go-to-market strategy for the Oil&Gas and Power&Utilities Industries.In addition to advocating on behalf of the industry inside Microsoft,he brings a unique perspective on the role that technology can play in improving safety,optimizing operations,and a

80、ccelerating the adoption of technology across the energy value chain.Monica is a Manager with KPMG Platforms Microsoft team and leads digital&cloud transformation,business advisory engagements to a fully integrated ERP system.She bring hands-on experience with full cycle close,practical application

81、of accounting methods,internal&external reporting,and system implementations to help harmonize data and streamline process design to help clients derive higher Return on Investment(RoI).Jeff Monk Chief Marketing Officer,US Energy&Sustainability Microsoft CorporationMonica Ortiz Manager,KPMG in the U

82、SJonathon has more than 30 years experience in a variety of strategy,operational and project management roles in military,corporate and consulting organizations.Since joining KPMG in 2009 Jonathon has worked across a wide range of industries including:Energy&Natural Resources,Financial Services,Gove

83、rnment and a range of corporates,advising on strategy,business transformation,operational improvement and effective change management.Rohit has 25 years of experience in technology-enabled business transformations.He specializes in leading large technology programs that enable value for businesses t

84、hrough the KPMG and Microsoft global strategic alliance.He is experienced in working with clients in finance,human resources,procurement,supply chain,operations,sales/marketing,and information technology industries.Jonathon Peacock Global Sector Lead,Oil and Gas,KPMG InternationalRohit Ravindran Dig

85、ital Platforms Lead,KPMG in the US13Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Get more from your twinThe new epoch of digital twinning By Peter El Hajj,Digital Twins Lead,Net Zer

86、o Urban Program,KPMG in the UK;Ronald Heil,Global Cyber Security Leader for Energy and Natural Resources and Partner,KPMG in The Netherlands;Kimberly Sorensen,Principal,CIO Advisory,KPMG in the US;and Candice Wilson,Director,Energy Solutions,KPMG in the US.14Drilling down 2023 Copyright owned by one

87、 or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.The oil and gas sector has been virtualizing processes and assets for years.But are their digital twins delivering the value they could?15Drilling down 2023 Copyright owned by o

88、ne or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Youre no stranger to digital twins.For decades,oil and gas players have created digital representations of assets and processes.Operators have been digitally simulating everyt

89、hing from offshore platform operations to subsurface reservoirs on the upstream side.Midstream players have been virtualizing pipelines and processing facilities.Downstream players use digital twins to monitor their operations and optimize maintenance schedules.Digital twins are everywhere.And the t

90、erm can be equally applied to a wide range of technologies and approaches.A digital twin could be a straightforward visualization technique like a graph or a chart.Or it could be a highly immersive visualization environment(or HIVE)where operators can view,monitor and remotely control an asset or pr

91、ocess.It might be a digital representation of an object,an asset,a process or a system.And it could be used for anything from training to operation.What it is and what it isnt What makes a digital twin valuable,however,is that it is connected to reliable and relevant data streams.The more right time

92、,the better(live data may not always be whats required).Regardless of their form or application,a digital twin should have a clear purpose,such as to allow decision-makers to reduce risk and increase business value.And to do that,it must be founded on quality data.Your oil and gas business will like

93、ly use digital twins across the asset lifecycle.In the project design phase,your engineers and planners may use digital twins to conduct remote field walkthroughs or enhance spatial awareness and orientation.Your project managers are probably using digital twins to track execution progress.Operation

94、s leaders may use them to stress test cost and scheduling parameters or to conduct operator training.Physical Twinasset,system or processDigital Twinanalysis,simulationand visualisationDataInterventionsDecisionsOutcomesInsightsDigital twins overview Source:KPMG Analysis Midstream players have been v

95、irtualizing pipelines and processing facilities.Downstream players use digital twins to monitor their operations and optimize maintenance schedules.16Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All ri

96、ghts reserved.Digital Twin FunctionalityActivity/FunctionVisualizationMonitoringSimulationProject Design,Build,Startup&HandoverVirtually explore project design and have instant access to detailed blueprints and other key documentsFTE and OPEX SavingsEfficiently track project executionFTE,CAPEX,and O

97、PEX SavingsCapital project design and cost and schedule stress testingFTE and OPEX Savings,possible CAPEX savingsOperations&Production OptimizationRemotely identify and diagnose operational issues and constraints in the production system;improve safety planning(simops and hazops)FTE and OPEX Savings

98、,SafetyRemotely monitor facilities and processes to minimize downtime and unexpected eventsFTE and OPEX Savings,possible Production UpliftsContinuously optimize facilities operations and simulate“what if”scenarios with minimal riskProduction UpliftsEngineering&Maintenance EffectivenessRapidly,remote

99、ly,locate and disaggregate equipment packages to improve work preparation and execution safetyFTE and OPEX Savings,SafetyGenerate real-time,aggregated data streams from operating equipment and maintenance operationsFTE and OPEX Savings,possible Production UpliftsOptimize maintenance schedules and ev

100、aluate impact of potential modificationsFTE and OPEX Savings and Production UpliftsIn the operations phase,digital twins are helping reduce FTE requirements by allowing central remote operations,and by ensuring operators are well trained and informed.They are being used to monitor operations,compone

101、nts or flow streams remotely.They enable operators to optimize processes and equipment in real-time or to conduct emergency response.Maintenance schedules are being optimized.Downtime is being reduced.Risks are being better managed.The big question,therefore,isnt whether or not you need digital twin

102、s it is whether your digital twins are delivering as much value as they could.17Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Some digital twin use cases can deliver a bigger bang fo

103、r the buck than others.If you operate a brownfield(i.e.already built)asset nearing its end of life,you may be challenged to justify the costs and disruption involved in creating a digital twin.Once you add up all the resources required to implement new technologies,new data management systems and ne

104、w processes,you may find the business case doesnt stack up.If you are building greenfield(i.e.from scratch),however,the equation flips.Building a digital twin of a new offshore platform after the fact would be like telling an electrician not to wire a new house until the interior has been plastered

105、and painted.The earlier in the process,the lower the cost and disruption,the greater the value over the lifecycle.Oil and gas infrastructure is a complex network of assets and systems that come together to enable safe extraction,treatment and flow of resources.As the use of digital twins grows,they

106、will extend beyond individual assets,and into the systems and system-of-systems they are part of.And this will release more value to the entire enterprise.KPMG firms work suggests that the return on investment can also increase significantly depending on their application.Where a non-remote brownfie

107、ld visualization application(like,for example,an operator training module)might deliver a 1:1 return,a remote visualization application could provide a 3:1 return(mainly by reducing the need for engineers or technicians to visit the site).An application that allows monitoring,simulation and optimiza

108、tion could provide a 6:1 return.The ultimate value would be a digital twin that provides a highly immersive optimization environment of an integrated system-of-systems.In the oil and gas sector,that utopia might be an ecosystem of connected digital twins that provides visibility from upstream to dow

109、nstream,across the end-to-end oil and gas operation.Some cities are moving in that direction using digital twins to optimize their assets and resources,to prioritize investments and to reliably monitor ESG impacts and goals by taking a whole system approach.Ultimately,the true value of a digital twi

110、n depends on the reliability and richness of the data that feeds it.More often than not,that means starting with the IT and OT data.Finding the value sweet spotTotal value(present value)MM$Total investment(present value)MM$Value for investment(2021 Dollars)Monitoring/Simulation/Optimization applicat

111、ionsRemote visualizationapplicationsNon-Remote brownfieldVisualization applications6:1 Return3:1 Return1:1 Return55.050.045.040.035.030.025.020.015.010.05.00.00246810121416Digital twins overview Source:KPMG Analysis 18Drilling down 2023 Copyright owned by one or more of the KPMG International entiti

112、es.KPMG International entities provide no services to clients.All rights reserved.In the last edition of Drilling Down Magazine,we encouraged readers to focus on the security of their operational technology(OT)environments to reduce risk.When creating digital twins,however,you will likely want to in

113、tegrate your IT within your OT.Without real,live operational data,your insights may be limited to what happened in the past;you wont be able to influence the present or adequately predict the future.Some old-school operators will shudder at the thought.In the past,common wisdom suggested the only wa

114、y to keep OT data truly safe was in a walled garden isolated from other networks.When hackers proved they could vault over the existing walls,most operators built taller walls.Now they are increasingly being asked to pull down those walls and to proactively integrate their data into the broader IT e

115、nvironment.Even if they wanted to,integrating that data is a formidable challenge.For brownfield assets and systems,it would require significant changes to current data flows,processes and controls both on the OT and the IT sides of the house.Security and governance would need to be updated and enha

116、nced.New analytics technologies and capabilities would need to be bought,built or borrowed.In regulated areas,the transformation could be exceedingly complex.Once again,greenfield sites may offer an easier route to value.In a greenfield situation,you can ensure that data security and integration are

117、 baked in the right from the start.You can test capabilities before they are applied in operational environments.You can plan for interoperability between IT and OT.For some oil and gas organizations,integrating and analyzing IT and OT data may require quick progress on the digital transformation jo

118、urney.It will also necessitate a greater focus on building the human skills and capabilities to turn that data and digital twin into tangible and measurable value.At the IT/OT interface19Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities

119、provide no services to clients.All rights reserved.You can build a virtual model of almost anything.But it is only significant when you have the skills and capabilities to turn the data into value.You need to partner people with machines.You need to combine data with experience.You need to put the i

120、nformation into the hands of the people that can make decisions.In part,this is about building strong partnerships between the business and IT.The business needs to articulate the need,quantify the value and develop the supporting capabilities.IT departments should ensure that best practices are sha

121、red,efficiencies are captured,and the technology is safe and secure.That requires a true partnership between the business(which includes operations,finance,supply chain and planning)and IT.Together,they must think through the people,data,technology and system requirements that will need to be in pla

122、ce to ensure that the digital twin is aligned with and delivering on the business objectives.Then they will want to consider where they can demonstrate near-term value while sustaining business value and support.These partnerships and collaborations will become increasingly important as the sophisti

123、cation and complexity of digital twins grow from processes to assets to systems to systems of systems.KPMG firms experience suggests that oil and gas companies will want to take a pragmatic and practical approach that can generate value,builds capability and enhances sophistication over time while s

124、imultaneously managing risk and improving control.Finding that balance will not be easy.Data meets experienceHow a digital twin helped create EUR2 million in new revenue“Could we generate more output power from our existing turbines?”a European energy company asked KPMG in the Czech Republic.The com

125、pany had vast amounts of performance measurement data,market data and external source data available.But it didnt want to risk shutting down one of its wind farms to conduct physical experiments.A digital twin would be needed.KPMG in the Czech Republic developed digital twins using mathematical and

126、AI prediction models to forecast the maximum achievable output power based on different wind turbine settings,wind strength and direction.That allowed the team to test whether different positioning of the nacelle and blade angles might deliver more output power.The digital twin demonstrated that tur

127、bine performance could be improved by up to 2.9 percent allowing each turbine to generate more electricity,worth up to EUR9,300 per year.With some 200 wind farms in this organizations portfolio,that could add up to EUR2.2 million in additional income.20Drilling down 2023 Copyright owned by one or mo

128、re of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.If the promoters of the metaverse are correct,every aspect of your life will soon have a digital twin(even you).And while the oil and gas sector has often led this area,most other bus

129、iness sectors are rapidly catching up.We are seeing increasing digital twin sophistication in infrastructure,government,transport,retail and consumer sectors.This means that skills,capabilities,technologies and use cases are about to grow exponentially as companies and investors pour capital into re

130、search and development and as students and digital natives develop more experience using them.The network effect is strong with digital twinning the more data,processes,assets and systems are tied together,the more value is generated.That is true at an asset,organizational and ecosystem level.KPMG f

131、irms experience suggests that external pressures like the Environmental,Social and Governance(ESG)agenda will drive continued adoption and sophistication of digital twinning.Digital twins are an excellent way for investors and owners to monitor their critical ESG indicators.They also allow decision-

132、makers to test and assess the impact of their decisions on ESG metrics before implementing them.As the drive to NetZero picks up pace and expectations rise,digital twins will play an essential role in the oil and gas response.KPMG professionals advice to oil and gas leaders is to speed up the digita

133、l twin journey to capture the actual value that is available and build capability and capacity.Very soon,everything will have a digital twin.Having the appropriate technologies and capabilities will be key.What does the future hold?Put integration over implementation.Start by thinking about what dat

134、a,technologies and systems can be integrated rather than what new technologies should be implemented.Understand the business objectives.Digital twins can do a lot of things and deliver on a wide range of objectives so make sure you have a good understanding of what you want to achieve.Build partners

135、hips to build value.Ensure that the business and IT is working closely together to mitigate the risks and maximize the value that you can create.Be pragmatic in your approach.Build capabilities and sophistication over time,while simultaneously maturing your risk and cyber capabilities.Key takeaways2

136、1Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Regardless of the stage of your digital twin journey,securing support from a strategic partner can help to build and sustain an enterpr

137、ise capability and can enable you to double down on the realization of benefits and keep your program on schedule.KPMG professionals can help by augmenting your internal resources and delivering successful strategic digital twin programs.With knowledge of the possible pitfalls,and the vendor ecosyst

138、em,KPMG professionals can build complex analytical models,understand the socio-technical change impact and can articulate the value at within your organization.How KPMG can helpKPMG professionals can help by augmenting your internal resources and delivering successful strategic digital twin programs

139、.22Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.About the authorsPeter is the digital twins lead for the Net Zero Urban Program.He is the former program lead for the UKs National Di

140、gital Twin Program at the Centre for Digital Built Britain.Peter is experienced in infrastructure finance,public-private partnerships and ESG digital.He is an InfraTech adviser at KPMG with a background in civil engineering and a PhD in data-driven asset management.Ronald is a partner at KPMG in The

141、 Netherlands and is the Global Cyber Lead for the Energy and Natural Resources sector.He has extensive experience helping international companies connect their products and devices to the Internet of Things and providing information security and ICS/SCADA advice.Peter El Hajj Digital Twins Lead,Net

142、Zero Urban Program KPMG in the UKRonald Heil Global Cyber Security Leader for Energy and Natural Resources KPMG International and Partner,KPMG in the NetherlandsKimberly serves KPMGs CIO Advisory practice as an IT Business Management(ITBM)solution,Energy sector and Houston market leader.She has more

143、 than 18 years of experience,primarily focused on leading strategic programs and transformational change within and on behalf of the IT function.Candice has 18 years of experience working with global mining and energy companies.She has a proven track record working with large global energy companies

144、 delivering business strategy,process optimization and digital technology engagements.Kimberly Sorensen Principal,CIO Advisory,KPMG in the USCandice Wilson Director,Energy Solutions,KPMG in the US23Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG Internationa

145、l entities provide no services to clients.All rights reserved.Tax in a digital worldTransform tax,transform valueBy Claire Angell,Head of Tax for Energy and Natural Resources,KPMG in the UK;Susie Cooke,Global Tax Transformation Leader,KPMG International;Jeff Dodson,National Oil&Gas Tax Industry Lead

146、er,KPMG in the US;Carlo Franchina,Global Energy&Natural Resources Tax Leader,KPMG International.24Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.As tax moves higher up the agenda for

147、oil and gas companies,the need for a digital tax transformation is becoming more critical.Heres how oil and gas finance and tax leaders can transform their tax function to transform value.25Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entiti

148、es provide no services to clients.All rights reserved.The OECD isnt your typical disruptor,nor are most tax authorities.But,over the past fewyears,tax authorities,governments,and Non-Governmental Organizations(NGOs)have radically changed thecorporate tax environment.The impact has been disruptive pa

149、rticularly to the oil and gas sector.The OECDs progress on Base Erosion and Profit Shifting(BEPS)and Pillar 2.0,for example,introduces a global framework to ensure large multinational enterprises pay a Global Minimum Tax of 15 percent on the income arising in each jurisdiction where they operate.Thi

150、s is disrupting many a companys strategic tax planning with a heightened focus on digital tax transformation.At the same time,tax authorities are also becoming more proactive.Tax authorities reach into taxpayers invoicing systems in many markets and determine indirect taxes in real-time.Many are alr

151、eady exploring how they might similarly reach into a companys Enterprise Resource Planning(ERP)system to conduct automated tax reviews,assessments and audits.And they are starting to think about how they would want taxpayer data to be organized to make that process easier for them.Many governments a

152、re using tax as both a Big Stick and a Big Carrot to help accelerate their energy transition and climate agendas.That has led to a complex array of new taxes,incentives and credits in virtually every market around the world.The slew of new measures announced in the US Inflation Reduction Act serves

153、as a case in point.And remember that all countries and territories offer different regimes.Navigating the complexity and options is challenging.The challenge for oil and gas leaders is that all of this tax disruption is coming at a time of massive strategic and business model disruption including th

154、e most significant business disruptor of all,the ESG agenda.Tax touches all pillars of the ESG agenda.Oil and gas players are diversifying into new lines of business,growing their downstream capabilities and investing in adjacencies(like renewables)and entirely new business models(like the metaverse

155、).The tax implications will be tremendous.Responding to all of this change in the tax environment(and,most importantly,ensuring compliance)will require a massive shift in how oil and gas companies currently manage their tax function.There is bound to be more disruption.A closer look at the US Inflat

156、ion Reduction ActThe Inflation Reduction Act includes a wide range of different tax incentives and benefits,including a robust package of energy and climate related provisions.It is notable not only for the numerous new energy tax incentives it provides but also for the number of new mechanisms empl

157、oyed to deliver these incentives.In some instances,the new law provides for direct payments from the federal government to taxpayers(if they dont offset income).In other cases,the tax credits can be transferred or sold to other taxpayers.Together,these new mechanisms require taxpayers and the IRS to

158、 think differently about long-held concepts of the US system.The big disruptor:Tax moves up the Oil&Gas agenda Many governments are using tax as both a Big Stick and a Big Carrot to help accelerate their energy transition and climate agendas.26Drilling down 2023 Copyright owned by one or more of the

159、 KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.As tax moves up the agenda,the tax function is becoming more visible at the decision-making table.Oil and gas executives are increasingly looking to their tax leaders to be more strategic.They

160、 want to see various tax scenarios as they plan their business strategy.They expect their tax leaders to bring them ideas and opportunities to help drive growth.They want to know their tax professionals are on top of changes in the international tax environment.They want their tax professionals to p

161、rotect the tax reputation of their organization.Like other parts of the business,tax is under pressure to move faster and with more agility.Tax professionals are being asked to cover more ground they need to understand the nuances of ESG reporting,the impact of digital taxes and the complexities of

162、retail taxes,for example.They also need to be increasingly efficient,effective and capable in their compliance and reporting activities.Yet few are seeing a commensurate increase in budgets or headcounts to handle the expanded scope.And this type of Do-More-With-Less mantra does little to inspire tr

163、ansformation.This is at a time when the urgency of tax transformation is becoming critical.Generally speaking,tax technology infrastructure at most oil and gas companies is due for an overhaul.Excel spreadsheets are everywhere.Data from different ERP systems dont always correlate.A recent survey by

164、KPMG International finds that 64 percent of Chief Technology Officers say their tax personnel spend more time data collecting and getting data ready than performing tax analytics.3 Even when tax data is available,only some organizations use it strategically.Most oil and gas tax functions now find th

165、emselves at a pinch point.The business expects them to be more strategic,efficient and capable.But tax functions need more technology tools,capability and capacity to deliver on those expectations.Digital transformation is the only solution.Digital transformation offers tax functions a clear path to

166、 strategic value delivery.It allows existing processes to be re-engineered with fewer manual touchpoints and greater agility.It introduces self-service functions,automation and machine learning,freeing human resources for more strategic and value-adding tasks.It offers opportunities to tax sensitize

167、 data across siloes to deliver a single source of the truth.It creates room for new operating and sourcing models.Digital transformation can enable oil and gas tax functions to automate the manual and repetitive,offload the tactical,take on the strategic,and deliver real value.There are a few other

168、options given the expectations for the tax function going forward.Where are tax functions investing?According to KPMGs annual benchmark survey of energy,power and utilities tax leaders,88 percent of tax functions plan to increase their investment in tax-specific technologies.4 Three-quarters plan to

169、 increase their use of enterprise finance IT systems for tax purposes.When asked where they would put an extra dollar of investment if they had it,most frequently,they said they would invest in tax technology.The urgent need for tax transformation 3 KPMG,2022 Chief Tax Officer Outlook4 Global Tax De

170、partment Benchmarking report,KPMG International,202127Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.The drivers of digital transformation for the tax function are everywhere greater

171、demand from the business,rapidly changing regulations,heightened tax authority expectations,efficiency objectives,talent shortages the list goes on.But we expect what will ultimately force tax functions to transform will be the need for more reliable and accessible real-time data.The following 18 mo

172、nths will see tax functions looking for and being asked for increasing amounts of data.Internally,the pressure for more forward-looking tax scenarios and insights is forcing tax leaders to reassess the freshness and accessibility of their data.They want to provide the business with accurate and stra

173、tegic forecasts,but they cant always trust the data they receive from multiple systems.Consider the data requirements for applying for various sustainability-linked tax credits and incentives.That will require tax functions to access new data sources that may or may not currently exist.Where it is a

174、vailable,it is likely spread across various processes,systems and assets in different formats and degrees of completeness and transparency.Some of it may need to be lifted from third-party service providers or Joint Ventures.The external pressure for better and more frequent data is also pushing tax

175、 functions to a crisis point.Tax authorities are moving towards real-time tax reporting,requiring tax functions to be much more confident about their data.At the same time,stakeholders and investors are pushing for greater tax transparency as part of the ESG agenda(14 percent of energy sector tax fu

176、nctions say they already publicly disclose their tax information,and 32 percent say they plan to in the future).5Perhaps not surprisingly,tax leaders say they will need to manage their data better if they want to operate effectively in the new normal.Almost eight-in-ten say they will require data ma

177、nagement,extract,load and transformation(ETL)tools,and 60 percent say they need ERP,source systems and data warehouses to operate more effectively.6 The data also suggests that tax leaders are currently working to standardize their processes and implement new technology tools to lessen the burden of

178、 data management on their function.7 Over the next 18 months,the demand for data will become a clarion call for tax and business leaders in the oil and gas sector to invest in digital tax transformation.Data will drive the agenda 5 KPMG,Global Tax Department Benchmarking:At-a-glance insights for ene

179、rgy,power and utilities sector tax leaders6 KPMG,2022 Chief Tax Officer Outlook7 IbidWhich of the following has your organization invested in to increase the focus on analytics and lessen the burden required on data management?Source:KPMG,2022 Chief Tax Officer Outlook Standardizing and streamlining

180、 processesImplementing data or technology toolsInvesting in technology or analytical trainingsand skills developmentLeveraging third-party service providers orvendor tools Redefining roles and responsibilities Building a data driven cultureDefining governance and controlsDefining a data strategyOthe

181、r*Multiple responses allowed.Key80%78%66%48%44%34%33%33%1%28Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Six Steps towards a data-driven tax function Start with a standard data mode

182、lIn our experience,sustainable transformation cant happen until the tax function has developed standardized,integrated processes and common data models a way to organize data from many sources and formats into a standard structure and share it seamlessly between different systems,applications and re

183、sources.The good news is that various technologies can help tax functions solve data issues that hamper transformation efforts.Capitalize on ERP upgradesERP investments are increasing as organizations work to comply with evolving financial reporting rules and requirements.A new ERP rollout or upgrad

184、e is an excellent chance for tax functions to optimize data and processes by adding clear tax specifications to work with the latest business systems.Meanwhile,prominent enterprise vendors are moving to cloud platforms,which creates additional opportunities for tax functions to access and integrate

185、the data they need and design tax-sensitized solutions faster and cheaper.Empower ESG with data and analytics(D&A)Tax and ESG are converging,with corporations being asked to publicly share more information on their tax strategy and operating model,going beyond mandatory disclosure requirements.Predi

186、ctive and scenario modeling enables enterprises to make decisions that align with the tax strategy while meeting calls for enhanced tax transparency and reporting under ESG.Next-level and real-time data analysis will enhance tax modeling and planning in this new,complex environment.Embrace intellige

187、nt automation As tax functions come under pressure to reduce costs,the focus of technology spending is shifting toward emerging technologies.Intelligent automation offers powerful benefits for tax functions facing new responsibilities and compliance demands,helping save time and costs and allowing t

188、ax professionals to focus on higher-level strategic activities.By embedding intelligent automation capabilities such as enhanced vision,speech,and language,tax functions can bridge gaps between systems and mimic manual steps executed by humans.Explore managed services Data management and transformat

189、ion as a service is an emerging need in tax,specifically for virtual collaboration and operation of multinational companies in the global environment.This allows tax functions to unbundle different parts of processes,keeping only the most value-added data analysis activities in-house.Skilled tax pro

190、fessionals can then focus on what they were trained to do analyzing data and deriving tax insights.Transform with people in mind Tax leaders should not underestimate the necessity of change in other areas of operations,including people,roles and responsibilities,culture,and service delivery.It comes

191、 down to this:More than a new tool or dashboard is needed to evolve the tax function into a more strategic business partner.Tax departments that are intentional,systematic and holistic in their approach to technology and data investments will see actual results.12435629Drilling down 2023 Copyright o

192、wned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.The Power of technology and D&A enabled tax transformationEnhancing decision-makingAdapting to changing business needsKeeping pace with regulatory changeEnabling a ho

193、listic view of tax activities$Optimizing costsDriving efficiencyStreamlining processesImproving financial reporting accuracyPredicting and identifying problems30Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to cli

194、ents.All rights reserved.Securing investment capital and permission to redesign and transform the tax function is not easy and will take work.Tax and finance leaders will need to put significant effort into moving this up the investment agenda for the organization.Start by focusing on small wins tha

195、t demonstrate considerable value and lead towards a more digital tax operating model.This will partly come down to building the business case for investment.A business case should include quantifiable benefits(such as time savings,cost reduction and energy use),qualitative benefits(like scenario pla

196、nning capabilities,better forecasting and more strategic advice to the business)and risk mitigation benefits(including financial risk,governance risk or reputational risk).Education will also be critical.The tax function will need to understand the needs of the business and be able to align its inve

197、stment requests to specific business outcomes.At the same time,the business will need to gain a greater appreciation for how a more strategic and digitized tax function can benefit the business.Similarly,the tax and technology functions will also need to focus more on internal partnering,to smooth i

198、mplementation and find opportunities for alignment on investment requests.At the same time,the increasing dependence on data analytics tools and enterprise systems will require higher technical proficiency at all levels of the tax function.And organizations are competing to attract and retain a limi

199、ted number of high-skilled tax professionals.One option is to increase the training and upskilling of current tax employees(an activity 58 percent of Chief Tax Officers say they are doing).8 Another is to look to outsource or co-source some activities(45 percent of CTOs say they rely on outside tax

200、advisers).9Ultimately,building your strategy around a clear vision for a digital tax function is key.If it aligns with the needs of the business and can deliver some quick wins,you should be able to build the right momentum to achieve a real and sustainable tax digital transformation.Overcoming the

201、barriers Figure out your vision for tax Make sure you are aligned with the business and related functions Build momentum and ROI through quick wins Look for accelerators and internal partners Get support from transformation professionals.Key takeaways8 KPMG,2022 Chief Tax Officer Outlook9 IbidAdditi

202、onal personnel and tax technology topped the list for tax leaders when asked where they would invest if they had an additional budget.Source:KPMG Global Tax Benchmarking Survey 2021WishlistTax technologyProcess optimizationTraining and educationOutsourcingAdditional personnal31%26%19%19%3%31Drilling

203、 down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.As the world of tax has changed,so have KPMG firms services,evolving for the modern complexities and challenges you face to become more multidis

204、ciplinary,technology-driven and collaborative.By taking the time to understand your unique business issues,KPMG Tax&Legal professionals can bring you targeted approaches and data-driven insights,engaging a variety of colleagues and service areas from KPMG firms around the world,and often drawing on

205、the experience and knowledge of KPMG specialists in other areas of the organization,including audit and advisory.KPMG professionals are passionate about building trusting,long-lasting business relationships with you delivering adaptable approaches to deliver the cross-border services that meet your

206、business needs today while helping you transform for tomorrow.United by our values,governed by the KPMG Global Tax Principles,and driven by our purpose to inspire confidence and empower change.How KPMG can helpKPMG professionals are passionate about building trusting,long-lasting business relationsh

207、ips with you delivering adaptable approaches to deliver the cross-border services that meet your business needs today while helping you transform for tomorrow.32Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to cli

208、ents.All rights reserved.About the authorsClaire is a Tax Partner focusing on the Energy and Natural Resources sector.She has over two decades of experience in the industry,providing corporate tax advice to a range of clients.Her experience covers mergers and acquisitions,international tax structuri

209、ng,asset finance,corporate tax compliance and tax provisioning.Susie is the National Service Line Leader for the KPMG in Canadian Tax Transformation practice.This unique service line combines technical tax experience,Lean Six Sigma principles,and technology to transform tax functions,including compl

210、iance and reporting processes.In tandem with her Canadian role,Susie is also the Global Tax Transformation leader,where she leads KPMGs Global Tax Transformation teams across the KPMG network of member firms.Claire Angell UK Head of Tax for Energy and Natural Resources KPMG in the UK E:claire.angell

211、kpmg.co.uk Susie Cooke Global Tax Transformation Leader,KPMG International,Partner and National Service Line Leader Tax Transformation,KPMG in Canada E:susiecookekpmg.ca Jeff has more than 25 years of tax experience in Big Four Merger&Acquisition and corporate tax departments.He leads our Energy and

212、 Natural Resources practice within M&A and works closely with our other O&G industry leads in the upstream,midstream,downstream,and O&G services space.Before rejoining KPMG,he served as the Director of Tax Planning and International at a FORTUNE 300 company with significant foreign operations in Nor

213、th America,Europe,and Asia.Carlo has extensive experience providing tax advice to various international and Australian companies involved in multiple industries.He has advised on several high-profile and complex transactions,been engaged in many tax reviews with tax authorities in Australia and is i

214、nvolved as a signing tax partner on many of KPMG Australias multinational audit clients.Jeff Dodson National Oil&Gas Tax Industry Leader,KPMG in the US E: Carlo Franchina Global Energy&Natural Resources Tax Leader,National Leader,Corporate Tax Non-Financial Services,KPMG Australia E:.au 33Drilling d

215、own 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Customers,insights and loyaltyHow to grow the downstreamBy Manas Majumdar,Partner and National Leader Oil&Gas,Chemicals,KPMG in India;Paul Martin,

216、Chair Global Retail Steering Group&Head of Retail UK,KPMG in the UK;Sushant Rabra,Partner,Digital Advisory,KPMG in India;Narmin Vasanji,Prairies Management Consulting Geographic Leader,KPMG in Canada;Eric Wesselman,Partner,Head of Digital Transformation Advisory,KPMG in the Netherlands.34Drilling do

217、wn 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.You know you need to diversify and grow your downstream business if you hope to survive and thrive past 2030.To do that,you need to know your custo

218、mers.Heres how the leading oil and gas companies are transforming into customer-centric businesses.35Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Why do customers suddenly matter mo

219、re?The pressure on oil and gas companies to diversify away from upstream and midstream activities is undeniable.Institutional investors and banks have been clear about their plans to reduce their exposure to the industry.Insurers are moving in the same direction(Munich Re recently announced they wil

220、l no longer invest in or insure projects in the sector).10 At the same time,governments and society are looking to the oil and gas sector to help lead the energy transition and the drive to Net Zero.Regulators are pushing for greater transparency around carbon impacts.And investors want to smooth th

221、e risk of price volatility.There are good reasons for all the pressure.The reality is that changing customer demand and expectations are making the old oil and gas business models obsolete.Electric Vehicles sales volumes have skyrocketed,breaking the connection between consumers and gas stations.Wit

222、h little room for differentiation at the pumps,customers are moving to gas stations that also solve their need for convenience and value.Those offering retail,food and other adjacent services quickly capture market share.Gone are the days when customers got to choose from three or four variants of g

223、as and diesel.Todays customers have multiple options,from EV charging to biofuels to hydrogen(whether that be blue,green,turquoise or pink).Understanding and adapting to customer preferences is becoming critical.The writing is on the wall.Oil and gas companies should evolve from the product-centric

224、business models of the past to the customer-centric business models of the future.And to do that,they should develop a better understanding of their customers.This can be a significant challenge for many integrated oil and gas companies.Many oil and gas execs come from the upstream side.Extracting a

225、nd refining the molecule was always the main focus.The rest was more about smart supply chain planning and franchising.Understanding the end customer was not an upstream priority.Now,however,they are being asked to focus on the downstream.They are facing pressure to develop and deploy new customer-c

226、entric business models.They are trying to improve the margins of existing downstream assets and partnerships.They are working to change their story to investors.And they recognize that their ability to do all these hinges on reasonably sophisticated capabilities,customer insights and loyalty.These a

227、re not easy times for oil and gas executives.The agenda is filled with Red Alert issues and topics that influence decision-making.Regulators and policymakers are becoming more active.ESG considerations are impacting the cost of capital.Shareholder activism is pushing different agendas.Yet,at the roo

228、t of each of these agendas is the customer.Regulators and policymakers are trying to protect the customer.Customer demand is helping drive the ESG agenda.Activist investors see themselves as giving retail investors a voice.Simply put,the customer is not just ON the agenda;the customer IS the agenda.

229、Understanding the customer has never been more critical for the oil and gas sector.The customer IS the agenda10 Munich RE,New Oil&Gas investment/underwriting guidelines,October 2022.Suddenly,customers matter even more.And suddenly,many oil and gas companies realize they need to know who their custom

230、ers are and what they want.36Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Oil and gas companies will need to come up with some new models and quickly.Just ten years ago,forecourts a

231、nd gas stations were all about fuel.By 2030,we expect traditional carbon-based fuel will make up just 20 percent of a gas stations revenues.11One avenue focuses on convenience.The idea here is to use the forecourt to offer customers the experiences,goods and services they need(whether or not they ar

232、e fueling up).Its a massive expansion of the convenience store approach already being used in the UK,Canada,the US and other markets,to include things like luxury cafs,high-end restaurants,pharmacies and groceries.And more than just goods,adjacent services can be added,which open up new dimensions f

233、or attracting customers with everything from car maintenance,insurance/financial services and lockers to home delivery services,child play areas and even co-working space.Mobility options,charging stations and hubs would be available while you shop.Our view suggests the forecourts of 2030 may see ap

234、proximately 40 percent of their revenues flow from retail,food and beverage.We expect around 30 percent of from adjacent services and about 10 percent from mobility services.Fuel will likely make up just 20 percent and that proportion will likely decline.12Consider what that means in terms of your c

235、ompetition.When the forecourt was all about fuel,oil and gas companies had just a handful of real competitors in each market.For fuel,prices were adjusted in near real-time,but only quarterly or monthly on non-fuel items.Proximity and need were the main drivers of footfall.Distress fuel purchases us

236、ually drove consumer visits.Forecourts of the future will likely face very different competition.They may fight against retail businesses with deep customer insights,relationships and experience.These competitors know what their customers want and can adjust prices and inventory rapidly to respond.T

237、hey compete based on convenience,purpose and experiences.Some may be physical competitors.More often,they will likely be digital and platform players.Now consider what that will mean in terms of capabilities and strategic focus.The ability to extract and refine the molecule will continue to be neces

238、sary.But as that part of the business declines,what will become more important is the ability to understand,interact and serve customers.Simply put,the engineers should make room at the strategy table for the retail merchants.They will also need to transform their own thinking to put the customer fi

239、rst.Who are you competing against?11 Fuel Forecourt Retail Market,KPMG International,202012 Ibid The idea here is to use the forecourt to offer customers the experiences,goods and services they need(whether or not they are fueling up).Its a massive expansion of the convenience store approach already

240、 being used in the UK,Canada,the US and other markets,to include things like luxury cafs,high-end restaurants,pharmacies and groceries.37Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved

241、.Evolution offorecourtsNote:Home delivery trend made moreprominent by rising logistics/deliverypartnerships in light of COVID-19Convergence(Retail+adjacent services)Fast-food outletsc-stores(groceries and other products)Liquid boost(cafes,soft drink kiosks)High-end restaurantsLuxury cafesCheckout-fr

242、ee c-storesCharging points for electric and autonomous vehicles(EV/AV)Mobility hubs(EV/AV service stations)EV/AV accessoriesForecourts product and service offerings are continuously evolving,driven by customer demand for convenience contribution of fuel retailing will continue to decline while non-f

243、uel retail offerings will gain prominenceForecourt in the pastConsumers forecourt visitscentred around distress fuel purchase this dictated the design of forecourts and the type of services offeredMarket Size(2015):US$176 billionMarket Size(2022):US$224 billionMarket Size(2030):US$304 billion190%Fue

244、l50%Fuel20%FuelForecourt today10%AdjacentServices Car services(spare parts&repairs)35%Retail&F&BConvenience and to-go culture has shifted the consumer demand towards retail shopping and adjacent servicesFast-food outletsc-stores(groceries and other products)Liquid boost(cafes,soft drink kiosks)Retai

245、l&F&B40%Car services(spare parts and repairs)Pick-up point for packagesHome delivery goods&services10%Mobility Home delivery goods&servicesCar wash and repairPick up point for packagesAmazon lockersCo-working spacesChild play areasHigh-end restaurantsLaundry servicesPharmacy30%AdjacentServices 15%Ad

246、jacentServices Futureforecourt(over1015 years)coffeefuelshopIn the future,consumer demand for convenience coupled with wider mobility and energy trends will enhance the role of servicesTechnology to have an over arching presence all acrossNote:(1)KPMG forecast busing univariate time series ARIMA mod

247、el in R;the forecast is purely statistical and is based on historic time series trend;(2)The market size represents revenue derived from convenience sales only;forecourt retailers sales of petrol and gas are excluded as per Euromonitor;(3)A trend made prominent by rising partnerships for logistics a

248、nd delivery,in light of COVID-19Source:KPMG AnalysisConvenience 38Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Oil and gas leaders already know that customer loyalty programs are a

249、great way to capture customer data,build relationships,drive cross-selling and encourage loyalty.Most have been offering rewards or recognition programs for years.The problem is that customer expectations of loyalty programs have changed dramatically.Loyalty programs have made generational leaps in

250、just a matter of years.The older types of programs are now failing to interest customers.The value they deliver to oil and gas companies is diminishing.And players like Starbucks and WeChat have changed the rules and dynamics of what loyalty programs can provide.Most oil and gas loyalty programs are

251、 1st Gen or perhaps 2nd Gen.They are generally point-based rewards cards where customers accumulate points through fuel purchases.They arent usually redeemable for reduced fuel prices,but they tend to offer vouchers for discounted services like car washes.These plans can often enable some limited cr

252、oss-selling and product bundling.But todays consumers want more than just reward points or vouchers.The more sophisticated 3rd Gen program is more of an ecosystem play.Multi-brand and tier-based,these programs let members use one card across a group of retailers.That allows for better customer engag

253、ement.But these plans tend to be more expensive for retailers and often fail to deliver meaningful customer insights about each brand.The likes of Barnes&Noble or some luxury retail brands epitomize the 4th Gen.Customers receive privileges based on their purchases and volumes perhaps an invitation t

254、o an exclusive fashion showing or free shipping on all packages.These loyalty programs,Amazon Prime is an example that many would be familiar with,require that customers pay to join,providing the company with an upfront revenue stream.These schemes allow retailers to drive increased engagement throu

255、gh value,service and content ecosystems.The most sophisticated loyalty systems today are best epitomized by WeChat and TenCent in China.These umbrella loyalty programs put everything a consumer needs under one roof,providing enhanced convenience alongside rewards.These platforms can offer integrated

256、 experiences between the online and offline channels,allowing retailers to track behavior across the ecosystem.Oil and gas downstream players should carefully consider how they play and who they play within this new world of loyalty programs.5 generations of customer loyalty39Drilling down 2023 Copy

257、right owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.1.Make it easy to use:Globally,more than six out of 10 consumers agree that loyalty schemes are too hard to join and/or earning rewards is too tricky.13 2.Be c

258、lear about your purpose:Customers lose interest in schemes and programs that dont continue to deliver a clear value proposition to their lives.3.Build awareness:More than one in three consumers who do not belong to any loyalty programs say it is because they are not aware of any.14 4.Keep it fresh:A

259、round half of consumers strongly agree that companies should find new ways to reward loyal customers.Four factors to a successful loyalty programFive generations of customer loyalty Traditional,old school loyalty program Point-based rewards that one could select from Entry and point accumulation bas

260、ed on purchasesGeneration 1 Rewards from points extended to include discounts on purchase(e.g.on fuel price)Also offer vouchers for additional services(e.g.car wash)Introduced product bundling&cross selling offers(e.g.lubes with gas)Generation 2 Becomes aneco-system play one loyalty card provides ac

261、cess to group of retailers Opens up program to be multi-brand Tier-based points program for more targeted customer engagement Generation 3 Rewards based on purchases&volumes Rewards include privileges/experiences(e.g.access to fashion event,exclusive holiday)Becoming paid programs where there is upf

262、ront revenue stream for better discounts/shipping etc.Generation 4 Evolving into umbrella loyalty programs,covering all consumer needs in one roof Provide integrated customer experience across offline&online channels allowing 300 tracking of buying behaviour Many examples from growth markets like We

263、Chat,Tencent in China,Tata Neu in IndiaGeneration 513 2019 Customer loyalty report,KPMG International,201914 Ibid 40Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Loyalty to data to i

264、nsights to value Customer loyalty isnt just about getting closer to the customer and increasing stickiness through repeat visits and friend-and-family recommendations.But increasingly,it is about customizing for the customer and creating value by building trust,enabling personalized experiences and

265、perhaps most importantly developing customer insights to engage customers profoundly.Its these insights that are driving solid margins for retailers and helping them grow their share of the customer wallet.And its these insights that oil and gas companies will need to compete with new downstream bus

266、iness models.Consider this:Retail giants are believed to change their prices millions of times a day.The average oil major does about 650 price changes per year.This allows retailers to maximize margins in near real time.But they can only do this because they have profound insight into what their cu

267、stomers want,what they are willing to spend and what value they are looking for.They know when a customer makes a distressed purchase and can play with price elasticity.And they know when a customer is just looking for the lowest price.Loyalty programs create the data.The data holds insights.The ins

268、ights deliver value for the customer and the shareholders.Yet the route from loyalty program to value is not straight.Oil and gas companies will need to overcome significant barriers and create new capabilities to navigate that journey.Lets start with the data.Today,most customer data that oil and g

269、as companies hold is stuck in siloes.Those with a mix of corporate and franchisee-owned locations face particular challenges integrating and correlating their data.To unlock the loyalty programs value,oil and gas companies should significantly mature their data collection and integration capabilitie

270、s.Technology is also a challenge.Older POS systems at forecourts limit the amount of information that can be captured.Outdated analytics capabilities mean that the most valuable insights remain locked away in the data.Customer voice technologies are rarely used.You need the right tech stack to run a

271、 slick 3rd or 4th Gen loyalty program.Undoubtedly,the cost of undertaking this type of data and technology transformation is high.We know of oil majors who plan to invest tens of billions of dollars into upgrading their technology stack over the next decade.Others are looking at how they might partn

272、er with existing leaders to help accelerate their progress at a more reasonable cost.Customer insights can deliver value to oil and gas companies in many ways.Weve already talked about how insights can help inform business model development,shore up margins and drive customer experiences.Think a bit

273、 bigger,and you can quickly see how customer insights can help oil and gas companies deal with significant strategic shifts like the energy transition.Customer insights will likely be vital to forecasting the shift from hydrocarbons to electrons.They underpin the business case for new investments.Th

274、ey inform decision-making around diversification into new sources of energy and new distribution models.And they will likely be critical to ensuring that your company will remain relevant to your customers as the energy transformation evolves.Dont underestimate the value41Drilling down 2023 Copyrigh

275、t owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.From ambition to activation You are committed to growing your downstream business.And you have a good idea of what you want to be in the future.But getting from am

276、bition to activation can be challenging.It will take careful thinking to navigate the options and possibilities.Instead of building your own retail capabilities,you could partner with an existing retail leader(or buy one).Your retail partner may already have a robust loyalty program and customer-cen

277、tric capabilities.They may also have a world-class technology stack.Similar decisions should be made around what processes should be automated,what can be outsourced and what should be kept in-house.However,these decisions should be made within the context of each business.Those with sizeable franch

278、ise networks may need help to build a new system that works for multiple stakeholders;partnering to secure a more agile technology platform may be the key.Those with customer loyalty programs or c-stores may want to consider the 2xImpactInsight-drivenstrategiesand actions Innovativeproducts andservi

279、cesExperience-centricityby designSeamlessinteractionsandcommerce Responsiveoperationsand supplychainIntegratedpartner andallianceecosystemDigitally-enabledtechnologyarchitectureAligned andempoweredworkforcevalue of their existing sunk costs and capabilities.Understanding what to build yourself,what

280、you can gain from partnering and what you purchase may be vital to building your roadmap.Ultimately,this is about securing the right capabilities to envision and execute against your ambition.And our view suggests that moving from ambition to activation will require maturity in eight connected capab

281、ilities.These are cross-functional and apply across the operating model.Our data suggests companies investing in these are twice as likely to see an overall impact from their investments.Each of the eight enabling capabilities is underpinned by a set of five sub-capabilities.The first step in defini

282、ng a winning model is understanding your relative maturity in each sub-capability against the required maturity to deliver your winning business model.In other words,start with a sober self-assessment of the strength of your capabilities across these eight areas.Then begin to think about how you bri

283、dge the gap between where you are and where you want to be.The bottom line is that the world has changed.Oil and gas companies have no choice but to transform and diversify.But to achieve that,they will need to gain a much better understanding of their customers.42Drilling down 2023 Copyright owned

284、by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.Digital disruption and rising customer expectations create unforgiving markets where loyalty is hard-won and easily lost.If you cant deliver what your customers want,when

285、and where they want it,they will go to someone who can.But there is no point in creating a breakthrough customer experience if the new business model runs at a loss.KPMG teams offer services that can help you achieve profitable,sustainable growth through customer-centric thinking.This is all about g

286、etting close to your customers and staying there.KPMG firms are committed to helping drive the Oil&Gas industry forward no matter how complex the challenge to create enormous value for shareholders and society.How KPMG can help1.Customer-centricity is key to oil and gas company survival.2.Yet compet

287、ition for the customer is tight,and expectations are high.3.Loyalty programs can provide important customer insights.4.Oil and gas companies will need to radically rethink their downstream models and capabilities and focus on creating value from customer programs.5.This will require a much more conn

288、ected enterprise and ecosystem of partners.Key takeways43Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.About the authorsManas Majumdar leads the Oil and Gas and Chemicals practice in

289、 India,primarily anchored in strategy and transformation work in this space.His recent focus has been on digital transformation and how to leverage digital technology to grow across markets and build efficient operations.In addition,he has supported both government and private sector clients in area

290、s such as market reform and preparedness,strategic growth plans and product-market strategy,business restructuring,operations performance improvement,cost optimization and supply chain transformation.Paul is the Head of Retail for KPMG in the UK.He is an experienced international business profession

291、al with over 15 years of experience in consulting,market research and operational roles focusing on the retail and consumer goods sectors.Before Boxwood,Paul spent over a decade working in leading macro-economic,retail and consumer research companies:the Economist Intelligence Unit and Planet Retail

292、.At Planet Retail,he had overall P&L responsibility and led the business as Managing Director,increasing revenues threefold between 2007 and 2012.Paul has worked with many of the worlds leading retail,consumer goods and professional services companies.He specializes in understanding global macro-eco

293、nomic,industry and consumer trends and translating these into actionable strategies for the programs he works with.Manas Majumdar Partner and National Leader Oil&Gas,Chemicals,KPMG in IndiaPaul Martin Chair Global Retail Steering Group&Head of Retail UK,KPMG in the UKSushant has 17 years of experien

294、ce at corporate and government levels across the globe,driving transformation strategies.Sushants specialization is on Digital transformation,covering emerging technologies,including Blockchain,3-D printing,Drones,IoT and related fields.He has advised large multinational companies,public sector orga

295、nizations,SMBs,and regulators on applying such solutions.Sushant has worked with KPMG in the UK and India and has served clients in Europe,Africa,Southeast Asia,and the Middle East.His engagements often have been with the board of directors,CXOs and other senior leaders,helping them chart out the te

296、chnology agenda for the organization.Narmin is a Partner at KPMG in Canada and Geographic Leader for the Management Consulting practice in Calgary.She is an experienced program leader with over 20 years of professional services experience to clients in various industries including oil and gas,power

297、and utilities,retail and public sector.Narmin focuses on helping organizations transform their corporate services functions through process,organization and technology changes.Eric is a partner at KPMG in the Netherlands and is responsible for our Digital Transformation Advisory practice in the Neth

298、erlands.Eric supports our clients with the innovation of their business models,the digital transformation of their organization and the supporting processes.He supports our clients in designing their Digital Strategy and IT Strategy,executing their digital journey management and orchestrating their

299、digital enabling ecosystems.Cloud,IoT,Data&Analytics,Mobile Apps,Blockchain,and Robotics are among the technologies Eric and his team apply to help our clients transform and future-proof their digital businesses.Sushant Rabra Partner,Digital Advisory,KPMG in IndiaNarmin Vasanji Prairies Management C

300、onsulting Geographic Leader,KPMG in CanadaEric Wesselman Partner,Head of Digital Transformation Advisory,KPMG in the Netherlands44Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.KPMG b

301、rand and risk consulting services received top score by clients and prospects.KPMG ranked number one for current brand score among risk advisory firms and for the quality of our Security services.KPMG received the highest score of the 16 vendors evaluated in this category a high achievement determin

302、ed by clients and prospects alone.This ranking is based on mindshare,our level of credibility,authority,and competitive resilience and topping this ranking recognizes our brand as the strongest in clients minds today.Based on 300 responses to a survey of senior clients of consulting firms and featur

303、ed in Perceptions of Risk Firms in 2021 published by Source Global Search.Click here for more information about KPMGs capabilities and innovation by leading analyst firms.The combination of talent and technology leads to a greater ability to provide excellent customer service,improve operational eff

304、iciency,and gain a competitive advantage.Undoubtedly,digital transformation should lead to positive outcomes,whether streamlining processes,harnessing data,or forming entirely new ways to do business.This is about uniting every piece of the enterprise for a common goal.Businesses today can face unce

305、rtainty with confidence thanks to digital transformation triumphs.Today,customer-centric technology strategies are considered vital survival tools for businesses due to the performance improvements they have achieved to date.With a global network of over 14,000 data and technology professionals incl

306、uding leading data scientists and engineers member firms can leverage the latest KPMG data,analytics,intelligent automation and artificial intelligence technologies to build and deliver customized business solutions for clients.KPMG has strategic relationships across the emerging technology landscap

307、e including Microsoft,Oracle,IBM Watson and Google.We co-innovate with our alliances to build leading technology solutions,helping amplify the value and capabilities member firms provide to clients.Trust underpins our approach to data,digital,and emerging technologies.KPMG professionals can help you

308、 take advantage of the opportunities created by new technologies through proactive governance models,transparency and controls.As a result of our expertise in assessing and solving clients most pressing business challenges,KPMG is consistently identified as a leader in various key analyst reports.Da

309、ta,digital and technology transformationKPMG recognized as a Forrester Wave Leader in Customer Experience Strategy Consulting“KPMG has a robust approach to employee CX training,offering a formal academy that provides learning opportunities through different modes and that can integrate with its clie

310、nts learning management systems.The firm accelerates clients culture change efforts through hands-on behavioral coaching for executives,and it uses multiple methods to influence employee behavior including rewards and recognition programs.KPMG continues the culture transformation with its strong lib

311、rary of assets to align the ecosystem,including pre-built target operating models some of which are sector-specific.”Source:The Forrester Wave:Customer Experience Strategy Consulting Practices,Q4 202245Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG Internat

312、ional entities provide no services to clients.All rights reserved.The KPMG Global Energy Institute(GEI),launched online in 2007,is a worldwide knowledge-sharing platform detailing insight into current issues and emerging trends within the Power&Utilities and Oil&Gas industries.The GEI helps to shed

313、light on key topics ranging from upstream volatility,midstream constraints,industry consolidation,shifting customer demands and new technologies,alternative and renewable energy,smart grid technology and transformation,evolving regulatory and statutory requirements,and financial reporting and tax up

314、dates.The GEI interacts with its over 40,000 members through various channels,including webcasts,publications and white papers,podcasts,events,and quarterly newsletters.The institute works together with member firm clients,external partners and the global KPMG network of energy experts in analyzing

315、some of the most pressing challenges facing the industry.It also develops practical solutions for an increasingly complex energy environment.A complimentary GEI membership is an effective way for energy executives to gather the latest information on industry trends and help meet their continuing edu

316、cation requirements.Members receive early alerts and invitations to thought leadership,studies,events,and webcasts about key industry topics.To receive timely updates and insights relevant to the oil and gas industry,become a KPMG Global Energy Institute member today by visiting Global Energy Instit

317、ute46Drilling down 2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.

318、Although we endeavor to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorou

319、gh examination of the particular situation.2023 Copyright owned by one or more of the KPMG International entities.KPMG International entities provide no services to clients.All rights reserved.KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited(

320、“KPMG International”),each of which is a separate legal entity.KPMG International Limited is a private English company limited by guarantee and does not provide services to clients.For more detail about our structure please visit KPMG name and logo are trademarks used under license by the independen

321、t member firms of the KPMG global organization.Throughout this document,“we”,“KPMG”,“us”and“our”refers to the global organization or to one or more of the member firms of KPMG International Limited(“KPMG International”),each of which is a separate legal entity.Designed by Evalueserve.Publication nam

322、e:Drilling down|Publication number:138492-G|Publication date:January 2023ContactsAnish DeGlobal Head of Energy,Natural Resources,and ChemicalsKPMG InternationalE: Valerie BessonRegional Energy&Natural Resources Leader for Europe/Middle East/Africa(EMA)and National Sector Leader,Energy and UtilitiesK

323、PMG in FranceE:valeriebessonkpmg.frAlex ChoiRegional Energy&Natural Resources Leader for Asia Pacific(ASPAC)and Head of Energy and Natural ResourcesKPMG ChinaE: Manuel FernandesRegional Energy&Natural Resources Co-Leader for Americas and National Oil&Gas LeaderKPMG in Brazil E:.br Angela GildeaRegio

324、nal Energy&Natural Resources Co-Leader for Americas and National Sector Leader,Energy,Natural Resources and ChemicalsKPMG in the USE: Sushant RabraGlobal Data,Digital and Technology Leader for Energy and Natural ResourcesKPMG in IndiaE: The planning,analysis,writing,and production of this report would not have been possible without the collaboration of colleagues around the world.Thank you to Les Der,Chris Downing,Lyndie Dragomir,Nicole Duke,Eileen Ryan,Peter Schram,and Hillary Swallen.Acknowledgements