Know About Digital Transformation in the Oil and Gas Industry – The oil and gas industry is one of the largest industries in the world, with a global footprint of $2.1 trillion as of 2021. This industry is predicted to account for 46% of the world’s energy demand and is already a major player in influencing the development of emerging markets and key to global, long-term geopolitical stability. No wonder the stakes for a successful digital transformation strategy in this industry are higher than others.
The oil and gas industry is in for a massive overhaul, thanks to contributing factors like digital, cloud computing and the changing new landscape (new normal). Following this need, digital transformation initiatives in the oil and gas industry have gained a lot of traction in recent times, affecting it in almost every aspect, from the field to the gas pump. Recently, many major oil companies have begun to use oil and gas technology solutions to better understand their customers and enhance the convenience of their business.
This blog will look at the meaning and importance of digital transformation for the oil and gas industry.
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The need for digital transformation in oil and gas industry
Oil and gas companies are being hit by the twin blows of demand disruption from COVID-19 and oversupply. This means that capital will be severely restricted and thus there is a constant pressure for oil and gas companies to cut costs, and to increase efficiency to generate ROI. As these pressures are gaining prominence due to the energy transition, to remain competitive, there is a need for the industry to adapt their business model.
The good news is that advances in oil and gas technologies are potentially strong enough to respond to such market changes effectively. There are ample opportunities for oil and gas companies to leverage digital transformation in this regard.
Areas Witnessing Positive Impact of Digital Transformation in the Oil and Gas Industry
The present scenario is going to accelerate operational and strategic reviews of companies as digitalization takes center stage. Incremental improvements in this direction are key to generate impact in an industry as big as the oil and gas industry.
Currently, this can be seen as companies start leveraging advances in oil and gas technology solutions across the value chain, with a potential for greater impact in the following areas –
1. Data Led Decisions
Big data, analytics and AI are converging in previously unseen ways to analyze data and get accurate insights. Such insights can help with boosting operational efficiency and innovative asset management. It can also assist the industry in identifying better drill areas, unplanned downtime and production optimization.
2. Internet of Things (IoT)
IoT enables intelligent asset management for companies, allowing them to benefit from automated monitoring and diagnostics. By connecting field assets and equipment to the IIoT (industrial internet of things) platform using smart sensors, companies can build real-time insights, operations and processes. For instance, optimization of equipment utilization and maintenance planning.
3. Robotic Process Automation (RPA)
Robotic process automation can be used for automating human processing, by adding artificial intelligence to automation, and complex aspects such as critical thinking, analytical models and quality improvements, across the organization.
4. Blockchain Solutions
Blockchain makes it easier to govern complex processes such as commodity trading, materials movement and asset tracking. It can also be used in conjunction with industrial internet of things (IIoT) platforms to track device history and enhance security.
Oil and gas companies have always made use of technology, both physical and computational, but they have been slower than companies in other industries to adopt the latest wave of digital transformation. Many are missing an integrated digital strategy, important capabilities, and concrete action plans.
Companies need the skills and talent to harness advanced oil and gas technology solutions. To fulfill these requirements, Wipro can be your partner in unlocking the value of digital transformation. We help energy companies succeed now and in the future, by building an interconnected, smart system for leveraging data and helping frontlines deliver big and lasting impact. Our holistic approach to digital transformation ensures all required dimensions are covered and no stone is left unturned when developing an organization’s path to digital success.
Digitalization of oil and gas technologies can help companies in adapting their businesses to remain competitive in the new market environment. Digital transformation is the key in helping companies reduce cost, deepen customer relationships, drive efficiencies and implement new business models in competitive markets.
Using technologies such as remote sensing powering the IoT, AI, virtual reality and big data analytics, oil and gas companies can realize profound impact and improvements across various industry aspects.