GlobalData’s latest thematic report, ‘Digitalization in Oil & Gas’, provides an overview of the adoption of digital technologies, such as artificial intelligence (AI), big data, Cloud computing, cybersecurity, the internet of things (IoT) and robotics, in the oil and gas industry. It also analyses the impact of digitalisation on the oil and gas value chain.
Adoption of digital technologies in oil and gas was initially sporadic, with a focus on select critical equipment and workflows. Shortage of skilled technicians, concerns over data security and cost-benefit uncertainty for adapting ageing assets have previously hindered the adoption of digital technologies.
Nowadays, an increasing number of oil and gas companies are upgrading their assets with digital technologies for long-term gains. Increased use of AI, Cloud computing, IoT and robotics is likely to transform the industry and create a synchronised ecosystem to meet future energy demands.
These technologies can deliver actionable insights for an oil and gas asset and help companies reduce their capital and operating expenditures. Minimising equipment downtime, while enhancing operational performance will remain the key objective of digitalisation. There is also a growing emphasis among oil and gas producers on digitalising workflows to enhance operational visibility for improved decision making. Concepts, such as digital twins and predictive maintenance are increasingly being modified to suit the different use cases of the oil and gas value chain.
Leading oil and gas players, such as BP, Chevron, ExxonMobil, Equinor, Shell and TotalEnergies, are increasingly collaborating with technology vendors in a bid to develop custom digital solutions that address their needs. Digital technologies are vastly improving the oil and gas industry by streamlining processes and opening up new frontiers for operations.