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BP and GE Introduce Digital Solution to Improve Operations

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Recently, BP plc (BP - Free Report) and General Electric (GE - Free Report) jointly launched a digital solution – Plant Operations Advisor (“POA”).

The latest digital solution is likely to boost the efficiency, reliability and safety of BP's oil and gas production operations by forecasting equipment breakdowns prior to their occurrence. This will help in preventing unplanned downtime and aid engineers in responding quickly to issues as they take place in real time. POA is already being used by BP to manage the performance of one of its platforms in the Gulf of Mexico.

BP intends to install this new digital solution in all its facilities around the world by next year, subject to a successful pilot. The company believes that the usage of POA would result in annual savings of over $200 million upon its installation in about 33 platforms worldwide.

POA, which is built on GE's proprietary Predix software, was designed as part of a development partnership the two companies announced in January to enhance oilfield efficiency products. The digital solution collects data from various pieces of equipment on offshore platforms to inform engineers whenever a part requires maintenance or repair works. The system offers easy access to various live data feeds and includes visualization capabilities, such as a real-time facility threat display. It also combines a widespread case management capability to help refer to prior operational issues.

Per BP, the usage of GE software program is likely to enhance its efficiency by 2–4%. However, neither of the involved parties divulged details regarding the terms of the deal.

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BP currently has a Zacks Rank #3 (Hold). Some better-ranked players from the same sector are SunCoke Energy Inc. (SXC - Free Report) and Futurefuel Corp. . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 177.78% in the preceding quarter. It reported a positive earnings surprise in three of the four preceding quarters.

Futurefuel Corp. posted a positive earnings surprise of 20.83% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.

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