Cloud computing’s importance has grown significantly in recent years, including within the oil and gas industry.
This exponential acceleration has enabled the use of shared IT infrastructure and services to create a flexible, scalable, and on-demand IT environment for cloud-based oil and gas production software.
Cloud computing provides users with an approach to consuming IT that is significantly more flexible, resource-efficient, and cost-effective compared to traditional IT.
The widespread move to homeworking necessitated by Covid-19 would have brought businesses to a grinding halt had investments in the cloud not been made over the last ten years.
That investment now has the potential to transform the way some businesses operate within the oil and gas industry.
GlobalData brings you all the latest information on cloud computing in oil and gas, whether you are an industry insider or a potential investor.
Cloud offshore company deal activity in the oil and gas sector
Using our GlobalData tracker, you can monitor cloud offshore company deals in the oil and gas sector.
This includes deals involving cloud or similar technologies over the past nine quarters.
Cloud driven innovation in the oil and gas sector
To best track the emergence and use of cloud in oil and gas, GlobalData tracks patent filings and grants, as well as companies that hold most patents in the field of cloud technology.
Patents in cloud technology in the oil and gas sector
Our cloud patent tracker in the oil and gas sector monitors the patents filings and grants over the past two decades.
Benefits of cloud-based oil and gas production software
The cloud represents a more agile approach to operating an IT architecture, particularly in support of modernising enterprise applications.
Tangible and fiscal benefits of cloud computing for top oil and gas companies include the following.
Businesses can access IT equipment, applications, processing, and storage capacity as needed, rather than buying hardware and software assets upfront.
Organisations can gain faster access to the latest application updates and other enhancements through this model.
Cloud can deliver significant cost savings across a company’s IT budget.
Billing is typically metered on a usage or subscription basis, so IT expenditure shifts from one-off, upfront capital expenditure to monthly operating expenses, offering a cash flow advantage.
Computing capabilities such as storage, processing power, or network bandwidth can be scaled up almost instantly and scaled down again depending on demand, and users are unlikely to ever be short of capacity.
IT resources can be accessed by any permitted users on authorised devices from allowed locations using an internet connection.
Landscape for cloud adoption in gas and oil companies
Oil and gas companies began tentatively adopting cloud computing over a decade ago, but in recent years the importance of cloud in the industry has grown.
More companies are adopting cloud-first strategies indicating the long-term importance of cloud usage.
Cloud computing is a facilitator for the adoption of other valuable time, money, and energy-saving technologies including artificial intelligence and machine learning.
The oil and gas industries are facing several challenges and will continue to do so.
Adopting the cloud and associated technologies can be an effective strategy to protect against universal industry challenges.
Cloud adopters will be better placed to swiftly implement new time, energy, and cost-saving technologies that will help oil and gas companies adapt to the changing industry.
Cloud influencer activity in oil and gas sectors
GlobalData tracks the mentions of cloud by pre-identified oil and gas sector influencers on Twitter, including the volume of tweets, and influencers mentioning cloud through recent months.
Cloud adoption by in oil and gas companies
The two main benefits of cloud adoption for oil and gas companies are the decrease in IT costs and the facilitation of several other technologies that will be crucial for an industry requiring a large adjustment in the face of mega-themes such as sustainability.
Cloud usage allows oil and gas companies to scale their data management and storage, driving greater flexibility in infrastructure costs.
The high computing power delivered via cloud platforms supports the adoption of other technologies, such as intelligent management of physical assets, which facilitates greater operational efficiency.
The market size of cloud usage in the oil and gas industry will continue to grow in the years to 2024, at a compound annual growth rate of 5.6%.
Oil and gas companies that best exploit the potential of cloud in their business and implement the technology strategically stand to benefit from this theme.
Key players in cloud-based oil and gas production software
The leading general cloud vendors, as well as the specialist cloud vendors for oil and gas, as related to different cloud technologies, are shown in our GlobalData chart.
The leading industry cloud adopters of different cloud technologies are also shown.
Cloud computing deployment models for oil and gas companies
Within the oil and gas industry, a range of cloud models are used for deploying and managing enterprise cloud computing environments.
Some enterprises demand that sensitive, mission-critical apps remain on-premises. Oil and gas companies can access cloud features through a private cloud while others still may be offloaded to the public cloud.
Over the past two years, management solutions that support hybrid cloud environments and, increasingly, multi-cloud management have grown in importance for leading oil and gas companies.
Public clouds are computing services typically associated with leading public cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which are available over the public internet under a pay-per-usage model.
Public cloud Infrastructure as a Service (IaaS) solutions include on-demand compute and on-demand storage, in which clients pay for the capacity they use.
Public cloud solutions are attractive to mining companies and vendors as there is no upfront capital expenditure (CapEx), and providers typically offer very flexible contracting models.
Unlike private cloud, customers aren’t responsible for the management of public cloud hosting infrastructure where their data is stored.
Private clouds are typically designed for the benefit of a single enterprise.
Private clouds come in different forms and can be distinguished according to where the cloud infrastructure is located such as an enterprise data centre (on-premises) or a service provider or infrastructure vendor’s data centre (off-premises).
They can also be distinguished according to who manages the cloud environment (for instance, the enterprise end-user, infrastructure vendor, or service provider).
A community cloud is a broader version of a private cloud supporting a community that has elements in common such as business model, regulatory environment, or the needs of end-users.
Examples include industry or vertical clouds (such as the GE Health Cloud), a publishing industry cloud, or a banking regulation cloud.
Fresh solutions help enterprises access the benefits of the public cloud, both off-premises and behind enterprise firewalls.
Public cloud has become a source of IT infrastructure, resources, and capabilities.
Hybrid cloud solutions are designed to modernise on-premises data centres via access to public cloud services behind the firewall.
Specific solutions aim to provide integrated access to private and public cloud environments while easing workload migration between both environments.
Multi-cloud involves the use of two or more cloud platforms and is increasingly common as enterprises make decisions about which platforms to use on a case-by-case basis, according to considerations such as cost, performance, availability, and compliance.
With hybrid and multi-cloud environments becoming more common, the tools to manage workloads across these environments are progressing
Leaders and disruptors in oil and gas companies
Our leader and disruptor lists for each theme are based on our analysts’ in-depth knowledge of the theme and the players involved in that theme.
These are based on subjective opinions supported by research and analysis. Leader lists take into account global market share, position in the value chain and ability to react to emerging, disruptive trends.
Disruptor lists take into account funding, strategic partnerships and the track record of the management team.