There is a growing interest among oil and gas companies in adopting the Industrial Internet to improve sustainability and market competitiveness, according to a recent GlobalData report.
Many oil and gas companies are yet to recover from the mid-2014 crude price crash and the current scenario of relatively low crude prices is denting their hopes of a recovery.
The situation is exacerbated by changing market dynamics among consumers, with growing preference for low-carbon emitting energy sources.
The rise of unconventional sources of hydrocarbons, such as shale and oil sands, is gradually altering the global power centers of oil and gas supply while also driving innovation in technologies and materials for hydrocarbon production.
These simultaneous transitions are disrupting the overall energy value chain and may impact sustainability for companies still reliant on traditional business models.
Industrial Internet has the potential to transform oil and gas processes and workflows and boost the technological capabilities of companies. This could help companies to overcome operational challenges while venturing into new frontiers in search of hydrocarbon resources. Industrial Internet adoption will also improve productivity and efficiency, thereby strengthening market competitiveness in a challenging environment.
Adoption of the Industrial Internet would make organisations more dynamic and adaptable to external factors. This concept is expected to play a central role in simulation and modelling of projects against different market scenarios, optimising inventory levels, demand forecasting, decision support, and logistics optimisation, and in setting up long-term objectives for an organisation.
The upstream sector is presently the hotbed for Industrial Intenet adoption and is witnessing comparatively more implementations as compared to other oil and gas sectors. Companies are driven by the need to reduce operational risks and maximising returns from their existing assets by digitalising oilfield operations and creating digital twins.
GlobalData’s thematic research identifies oil and gas companies, such as BP, Shell, Chevron, ExxonMobil, ConocoPhillips , Gazprom , Repsol , Equinor , Saudi Aramco, Sinopec, and ADNOC as the major players in adoption of the Industrial Internet theme in the oil and gas industry.
These companies are adeptly assisted by technology providers, such as Microsoft, IBM, Amazon, PTC, CISCO and Intel, which are gradually assuming leadership in delivering Industrial Internet solutions to the oil and gas industry.