^{The oil and gas industry is of vital importance for the economic growth of countries and the development of societies. As primary energy sources, oil and gas contribute 56% of the world's energy matrix. At the same time, it is an industry of global thinking and action and is therefore directly involved in the global mega trends of energy transition, digital transformation and plays an important role in achieving the Sustainable Development Goals.}

^{Oil companies, operators and service companies such as SERTECPET play a very important role in meeting the energy demand of all countries, especially those where per capita consumption is relatively low compared to developed countries. For example, on average, an inhabitant of North America consumes 5 times more energy than an inhabitant of South America and the Caribbean.}

^{As an active part of the hydrocarbon industry in Latin America, SERTECPET has recognized the importance of modernizing its business model in accordance with the global megatrends of energy transition, digital transformation, as well as aligning its performance to the principles and goals of the 17 Sustainable Development Goals. The evolution of SERTECPET's business model takes into account the fundamental principle of continuing to provide energy to society with less carbon while integrating economic business results with social and environmental aspects.}

ENERGY TRANSITION

The energy transition to cleaner energies is underway and the share of fossil fuels should decrease over time. Nevertheless, it is difficult to envision a world without oil and even more difficult to envision a world without natural gas in the next thirty years. Even though most future scenarios indicate that oil and gas will be needed in the coming decades, we must not lose sight of the fact that there will be changes in what, how, where and when to explore, develop and produce hydrocarbons, taking into account first of all the resources already discovered and the new ones required for the transition to cleaner energies.

This means that the role of oil companies, operators and service companies will gradually change. On the one hand, the projected global increase in energy demand and the diversification of sources means that a solid and deep understanding of the geological characteristics of the reservoirs is needed in order to optimize exploration and exploitation processes, seeking at all times to maximize oil and gas recovery. On the other hand, diversification of energy sources also means that oil companies will have to incorporate in their growth plans the participation in the extraction of other types of energy, such as geothermal energy.    

In order to take advantage of the opportunities offered by the energy transition, SERTECPET will have to transform itself into an integrated energy services company, diversifying the services we provide to new clients and working with new energy sources. It is important to always remember that our contribution is towards improving people's quality of life, improving safe, continuous and low-cost access to different energy sources. The skills, knowledge and experience developed in these thirty-two years will serve as a basis for us to become an active part of the transition to cleaner energy.

The opportunities offered by the energy transition, which SERTCEPET will take advantage of, can be summarized as follows

DIGITAL TRANSFORMATION

The oil and gas industry has proven to be one of the most technologically transformed in the last twenty years. Today it is possible to access deeper resources, in more complex and sensitive areas, in less time, at lower cost and above all respecting the environment and communities. The efficient and profitable production of unconventional resources such as shale gas, shale oil and tight oil is the most recent example of how technological transformation generates value in industries.

In recent years we have witnessed how digital technologies are helping different industries to become more productive, safer and more cost-efficient, and the oil services industry cannot be left behind. The swings in company revenues generated by the volatility of oil prices and the energy transition process itself require service companies to take advantage of the benefits offered by digital technologies.

To take advantage of the benefits of digital transformation, SERTECPET must first develop a process to evaluate the possibilities of digital transformation in its different operational and management processes, starting with the questioning of the current processes. To do so, it is necessary to answer four key questions: How digital is SERTECPET today, how digital should we be, why should SERTECPET go digital, and finally, how do we become digital?

The answers to these questions, from different perspectives, will help SERTECPET's managers to prepare a strategic plan and a comprehensive roadmap to develop digital transformation projects to make our processes more productive, safe and, above all, lower cost in order to be prepared for periods of lower activity due to low oil prices, which will allow us to continue generating value for our customers, remain competitive and honor our mission of generating energy solutions with cutting-edge technology.

A quick look at the current state of our processes shows us the opportunities that can be generated for digital transformation in SERTECPET. In the first place, the generation of a modern, integrated, easily accessible database that can be converted into knowledge generation from the digital transformation of stored data and information.

Current engineering and construction processes could benefit from the implementation of digital technologies to mechanize and sensorize their processes, preventing the occurrence of unsuitable conditions and failures on the one hand, and allowing remote control of operations to facilitate communications and minimize the possibility of accidents on the other hand.

In the processes of well completion and workover, testing and production with artificial lift, there is a wide space to cover with digital technology. The mechanization and sensorization of processes, as well as the transmission, analysis and visualization of data in a fast, safe and reliable way will improve productivity, safety and above all the cost of services, making them more efficient, thus helping to maximize the value of mature fields with low production and high operating costs.

It is important to emphasize that digital transformation is not only about technology but also about people and fundamentally about a strategy that allows, before starting the transformation process, to prepare the company and generate a new ecosystem based on the committed participation of people. Many of the digital technologies, in addition to improving productivity, safety and profitability, allow us to predict and make better decisions that will definitely lead to business improvement and the ability to innovate in the company. It is for this reason that the digital transformation strategy must ensure the preparation of people not only in the use of technology but fundamentally in the capacity for change and transformation.

SUSTAINABLE DEVELOPMENT GOALS

The 17 Sustainable Development Goals, SDGs, of the "2030 Agenda for Sustainable Development" address the most pressing economic, social and environmental challenges of our society in a decisive and structured manner. It is clear that a more sustainable and sustainable business vision in the oilfield services business not only adds value, but also offers new possibilities for growth.

Due to its convergence with the economy, education, environment, health and water, energy is fundamental to the achievement of several of the SDGs. As mentioned above, the hydrocarbon industry produces much of the energy needed today and will be a major player in meeting the growing global demand for energy in the coming years. Oil service and operating companies thus face a double challenge: on the one hand, to meet energy demand and, on the other hand, to do so in a reliable and accessible manner as defined in SDG 7.

Historically, there is evidence that oil and gas production has fostered economic and social development worldwide, providing access to affordable energy, providing decent employment opportunities, fostering entrepreneurial and skills development, generating significant tax revenues for states and thereby building infrastructure to improve public services.

However, it is also necessary to recognize that continued oil and gas production has contributed to several of the main challenges that the SDGs seek to address: climate change, environmental degradation, population displacement, economic and social inequality, among others. In recent decades, the industry has made progress in preventing, mitigating and managing these impacts and risks.

Despite the great importance of energy supply for daily life, industries, education and many other services, the hydrocarbon industry still suffers from a poor public image. For this reason, with careful planning and implementation, oil operating and service companies have the opportunity to contribute to the achievement of the SDGs, either by improving their processes to avoid or mitigate negative impacts, or by developing concrete actions to improve energy efficiency in operations. This requires developing two important aspects:

- Broad understanding and comprehension of the relationship between the oil and gas industry and the 17 SDGs.

- FullAwareness of the opportunities and challenges for the hydrocarbon industry posed by the development and achievement of the 17 SDGs. Opportunities and challenges should be assessed for all stakeholders and ways in which the industry could address them.

Like digital transformation, careful planning and implementation is required to take advantage of the opportunity to contribute to the 17 SDGs, either by enhancing their positive contributions or by avoiding or mitigating the industry's own negative impacts. In the case of oil service companies such as SERTECPET, achieving the SDGs by the 2030 target will require close cooperation and collaboration with operating companies, governmental and non-governmental entities. And with academia.

SERTECPET'S FUTURE

In this context, SERTECPET's future will be governed by the ability to visualize, today, the opportunities and challenges that mega-trends will generate in our organization and in the oil and gas industry.

The convergence of the mega-trends of the Energy Transition, Digital Transformation and the Sustainable Development Goals, with the need to continue to provide the energy that the world requires on a daily basis, provides a favorable environment for the transformation of SERTECPET's business model into an integrated energy services and operations company.

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Seferino Yesquen

International Business Development Manager

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