Digital Transformation Promises Enduring Advantages for the Global Oil and Gas Sector: Analysis
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New Delhi, Dec 31 (NationPress) Digital transformation initiatives are poised to offer lasting advantages to the oil and gas sector worldwide, according to a report released on Tuesday.
Technologies like artificial intelligence (AI), blockchain, cloud computing, the Internet of Things (IoT), robotics, and virtual and augmented reality (VR and AR) have now become integral to the oil and gas industry.
The report by GlobalData, titled ‘Digital Transformation in Oil and Gas’, underscores the significant role of leading oil and gas firms, including ADNOC, BP, Chevron, ExxonMobil, Shell, and TotalEnergies, in embracing and advancing digital solutions to tackle business challenges.
“Field personnel are increasingly utilizing handheld devices to collect data, document observations, and maintain communication with their teams. These advancements aim to enhance efficiency in workflows, thereby boosting productivity and reducing costs,” stated Ravindra Puranik, an oil and gas analyst at GlobalData.
The reduction of operational risks is another significant advantage of digital transformation, as it minimizes the necessity for human involvement in perilous settings.
The implementation of digital technologies is also anticipated to yield intangible benefits, particularly in reducing emissions.
A recent survey by GlobalData revealed that organizations are leveraging digitalization to decrease their operational emissions. Given the escalating concerns regarding climate change, managing emissions has become crucial for the sector.
Drones are being deployed to keep track of methane emissions within the industry, while AI is utilized to devise effective strategies for mitigating methane emissions arising from everyday oil and gas operations.
“These initiatives align with the ESG objectives established by international agreements like the Paris Accord,” added Puranik.
Since digital technologies are not typically a core competency for oil and gas firms, the challenge of having a workforce equipped with necessary skills is a significant concern.
Many of these hurdles can be addressed through collaborations with technology specialists and ongoing training in areas such as cybersecurity awareness.
“Industry players are already engaging in such collaborations, with major oil companies like ExxonMobil and Chevron forming long-term partnerships with Microsoft. These alliances will assist companies in navigating technological challenges and advancing their overall digital transformation,” the report noted.
