Although the oil and gas industry has always been volatile, there was nonetheless a comfortable predictability to the boom and bust pendulum. Commissioned by accenture and in conjunction with microsoft, the survey focuses on investments companies are makingwhy, when and which onestoday and in the near term. As a result of the digital revolution, the international development trends in tourism have opened the way for novel solutions like cloudbased booking sites or information and experience sharing via digital platforms. Why digitalization matters for oil and gas the internet of things iot is driving the rapid pace of digital adoption across multiple industries. To remain profitable, oil and gas companies must consider how to gain operational. Connected, autonomous, shared and electric vehicles. The visibility and clarity delivered by digital technologies and advanced analytics can give executives unprecedented, granular views into operations, increase agility, and. Oil and gas companies are realizing they cant simply continue cutting costs to survive. Trends and challenges for the oil and gas industry stout. The next frontier for digital technologies in oil and gas. The oil and gas industry is no stranger to big data, technology, and digital. The low oil price has destabilised the business models of some of the oil and gas industry s most established players, forcing them to cut costs to ensure their longterm survival. Geo expro digital technology trends in the oil and gas industry.
The most prominent of these are low oil prices, emergence of new hydrocarbon sources, increasing penetration of renewable energy, electric vehicles, strict carbon. Respondents were oil and gas industry professionals including engineers, midlevel and executive management, business unit heads and staff, project managers and. And no one knows for sure when the slump will pass. Sector team works to anticipate market trends, execute the mobility of our. This is an industry ripe for digital transformation. Timing between the two components can take years and usually does. As early as the 1980s, oil and gas companies began to adopt digital technologies, with a focus on better understanding a reservoirs resource and production potential, improving health and safety, and boosting marginal operational efficiencies at oil. Oil prices are projected to remain relatively low through 2016. The oil and gas industry is involved in a global supplychain that includes domestic and international transportation, ordering and inventory visibility and control, materials handling, import. The oil and gas industry is facing intense pressure to improve operational efficiencies as oil prices continue to fluctuate. Inevitably, the drive to reduce overheads and to stay profitable has led to mass layoffs, numerous asset disposals and steep reductions in capital expenditure.
Digitalization for oil and gas industry oil and gas. Aug 03, 2018 as oil prices tentatively recover from the 2014 crash and investments in alternative renewable energy sources gain momentum, oil and gas companies need to innovate to stay competitive and keep the fuel flowing. Analysis of the current problems of russias oil and gas industry in the context of the main trends of global oil and. Digital imperative the convergence of supply and demand many oil and gas companies exist as islands of technical excellence. The applications for iot in the oil and gas industry, as with other digital technologies, centre on improvements in efficiency and safety. Oil and gas, despite its age, is a booming industry. For example, by integrating the iot into offshore equipment, employees can track and monitor equipment lifespan and other elements that can affect production, such as wave heights, temperature, and humidity. The contribute of digital technologies for the oil and gas. Transforming safety by improving hazard sensitivity. The remainder of this paper is organized as follows.
Technology can now deliver big data from virtually every aspect of drilling, production, operations and maintenance. Sep 06, 2018 digital twin is key to digital transformation of the oil and gas industry 962018 the concept of digital twin is not new and it has been around for more than a decade. Theme description the iea estimated, in themediumterm oil market report 2016, that oil demand will increase from 94. Offshore technology asks industry experts for their insight into how technological advancements will shape the future of oil and gas. A large percentage of the individuals who have the institutional and technological knowhow of their organizations specific risks and operations are looking toward retirement. This new level of digital capability will help the oil and gas industry navigate current and future challenges, and leverage the opportunities offered by the growing need for energy to fuel the global economy in the decades ahead. Cios must rise to the challenge of scaling digital transformation by embracing change leadership and redesigning it to enable rapid innovation. Continued financial recovery and efficiency efforts propel more intensive digitalization and business change across the oil and gas industry.
Fueled by digital innovation, the new core trend presents a host of valuable opportunities for oil and gas. Accentures global digital energy senior manager, brian richards, explores how these trends can help oil and gas companies drive value in their businesses. In the present climate, the quest is not only for volume, but rather for value. The digital oil field is something of a buzzword in the. While aior more accurately predictive and analytic algorithms, and automationin the upstream segment of the industry has garnered some. It was also during this time that the chinese oil industry was shaped. Oct 17, 2017 the oil and gas industry is no stranger to big data, technology and digital innovation. Despite efforts to revolutionise, this measure is a damning indictment of a sector that is lagging behind. Likewise, gas giant gdf suez recently reinvented itself as engie, a. December 2019 safety analytics derived from virtualreality data can quantify workers. Digitizing energy digital disruption in oil and gas. Past trends and future prospects oxford institute for. Keywords trends, technologies, oil and gas industry.
The oil and gas industry is facing a shrinking talent pool for those with specialized expertise. Apr 28, 2018 the traditional oil and gas industry is being transformed by a new wave of digital disruptive technologies. We joined more than 100,000 energy ministers, global ceos and leading decision makers to discuss the latest in the oil and gas industry. For example, by integrating the iot into offshore equipment, employees can track and monitor equipment lifespan and other elements that can affect production. The oil and gas industry is tailormade for this transformation. Digital will shape the future of oil and gas ey financial services. Part of pwcs 22nd annual global ceo survey trends series. Past trends and future prospects 4 yet maos era is significant beyond the countrys industrialization, which laid the foundations for rising energy consumption. Powering our insights with data and advanced analytics. Digital twin is key to digital transformation of the oil and gas industry 962018 the concept of digital twin is not new and it has been around for more than a decade. Digital transformation initiative oil and gas industry world. Digital solutions that support this new approach are how the oil and gas industry will transform to succeed both today and in the future.
Giovanni franchichemical engineer phd student university ucbm rome italy 1. The oil and gas industry is beginning a transformation of its own, increasingly looking toward datadriven solutions to boost performance, enhance efficiency and ultimately, to reduce costs. A comprehensive source for coverage of the financial landscape of the oil and gas industry. In india, on the other hand, the process of industrialization is about to accelerate. Companies in the technology sector must address the risks and disruptive potential of their products and services. Producing crude oil and refined products at a lower cost to stay competitive on the market is one of the industrys major challenges. The capability to process, analyze and develop insights from data has unfortunately not spread as quickly. Section 1 assesses the macroeconomic and demographic trends. Optimizing production systems and environmental utilities on currently operating sites is therefore a priority for the oil industry. The digital transformation in upstream oil and gas. The oil and gas industry is no stranger to big data.
Here are five takeaways related to the challenges facing the industry to date, and how the power of digitalisation can help. The visibility and clarity delivered by digital technologies and advanced analytics can give executives unprecedented, granular views into operations. Short takes from our experts on the oil and gas industry. If playback doesnt begin shortly, try restarting your device. In line with the new trends of travelling, there is a dynamically growing demand for.
The companies in the oil and gas industry are faced with challenges and hard competition. As supply increases and oil prices rise, volatility will continue to drive strategy. This means that the oil and gas industry needs all the help it can get. Connectivity has shown the potential to empower millions of people, while providing businesses with unparalleled opportunities for value creation and capture. As technological trends play out for oil and gas companies, they will help to influence innovations in many areas of the business. Here are five trends in the world of digital oil and gas worth watching this year and throughout the decade. The event will analyse key challenges and opportunities facing the industry with focus on iot, ai, machine learning, blockchain, energy transition, data analytics, cyber security and many other aspects of digital transformation.
Expansion to centre on asia geographically, most oil jobs will remain in the current areas of the middle east, the gulf of mexico, north america, russia, the north sea and parts of asia. These factors are more important than ever given current global oil prices. Digital oilfield market size, share global trends report. Digital trends in the oil and gas industry digital technology can help oil and gas companies reduce costs and improve efficiencies by making faster decisions and increasing workforce productivity. An annual analysis of market trends in the natural gas industry, the report includes industry projections, as well as important information, key facts and data on the natural gas industry. This maximizes production efficiency, reduces the costs of extraction and. Applications employing blockchain technology are gaining momentum in oil and gas companies based on data governance that the it department administers. Achieving a breakthrough in production performance demands a fresh perspective on field operations with digital innovation. An oil and gas industry example of this orchestration is digital oil recovery tm powered by foroil dor. Aug 22, 2017 in comparison to other sectors, the industry s approach to digital transformation is expected to be evolutionary rather than revolutionary. Digital transformation in the oil and gas industry is already a fact of life.
The rate of change associated with digital transformation means disruption across industries, and the upstream oil and gas sector is no exception. Applying digital technologies in development and production. The latest technologies, technical solutions and strategies in exploration, drilling, production and more. Those days, however, appear to be over, at least for now. A new era for the industry 5 there is growing consensus that the oil and gas industry is on the cusp of a new era, as a second wave of business and digital technologies looks set to reshape the sector, propelled by a series of macroeconomic, industry and technology trends. Oil and gas companies are confronting a turning point, one that requires strong decisions about their strategies for surviving and thriving in uncertain times. Digital transformation and innovation in oil and gas sector. Oil and gas industry 3 contents foreword digital transformation is emerging as a driver of sweeping change in the world around us. Top digital transformation trends for energy and utilities.
Today, digital is a key enabler in oil and gas to reduce costs, make faster and better decisions, and to increase workforce productivity. Evidence of technologys disruptive impact on the oil and gas industry is clear and. The disruption in oil and gas upstream business by industry 4. For the vast majority of oil and gas companies, however, it remains difficult to translate digital efficiency into better, financial performance and new business growth. In this section we provide a brief assessment of macro trends and how they.
Digital twin is key to digital transformation of the oil. The auto industry must find a way to balance accelerating innovation and financial survival. Subscribe to bain insights, our monthly look at the critical issues facing global businesses. Heres a step by step guide for the energy industry marketers. According to deloitte, the oil and gas industry has a digital maturity rating of just under five out of ten. Carbon the business world, certainly in europe, north america, and asia, now treats decarbonisation very seriously, and i believe will accelerate efforts and investments in this arena for the next several years.
Exxon mobil, the largest petroleum refining company in the world. Oil and gas trends 2019 building growth strategies on shifting sands. Digital twin is key to digital transformation of the oil and. White paper digital transformation initiative oil and gas. Industries are embracing technology to reshape their operating landscape and reap the benefits of improved productivity, higher efficiency, and increased cost savings. Companies are turning to technology to thrive within this heavily competitive market. The annual upstream oil and gas digital trends survey is commissioned by accenture and microsoft. Pdf digital trends in the oil and gas industry researchgate. The 2016 accenture and microsoft upstream oil and gas digital trends survey identify key trends driving digital investment in the oil and gas industry. The oil and gas industry is no stranger to big data, technology, and digital innovation. Its been a longstanding and time honoured practice to make predictions about the future.
Upstream oil and gas digital trends survey 2017 accenture. The hype around ai spreads a lot further than the oil and gas industry, but in it, the technology is making the first splashes and it looks like they are fast multiplying. World economic forum digital transformation initiative. Although the oil and gas industry has always been volatile, there. The oil and gas industry is not a stranger to this and is progressing towards digital maturity. What does digital transformation in oil and gas look like. Five digital oil and gas trends to watch in 2020 geoffrey. But as yogi berra, a famous and oftquoted new york yankees catcher and manager, observed, making predictions is really hard, especially.