Digital transformation is reshaping the oilfield services (OFS) sector, with Rystad Energy forecasting over US$320 billion in savings for the oil and gas industry by 2030 through targeted digitalisation in drilling optimisation, autonomous robotics, predictive maintenance, reservoir management, and logistics optimisation.
This projection underscores a shift toward digital-first strategies amid volatile markets, fuelled by mergers, tech partnerships, and software integration.
As President Donald Trump pushes for expanded U.S. energy production, these efficiencies could bolster upstream operations globally.
Major players are increasingly isolating digital revenues in disclosures, signalling investor appetite for stable, recurring streams less tied to cyclical capex.
SLB’s digital division posted US$658 million in Q3 2025 revenue, up 11 per cent sequentially, with expectations for double-digit annual growth and a 35 per cent full-year EBITDA margin, aided by acquisitions like ChampionX.
Viridien’s digital, data, and environment (DDE) segment hit US$787 million in 2024 revenue — a 17 per cent rise — with adjusted EBITDA of US$458 million, driven by geoscience and earth data growth.
Rystad Energy Senior Vice President, Supply Chain Binny Bagga said: “We estimate that US$320 billion is a modest figure, as broader digital adoption across other business domains could generate even greater value.
“To realise this, executives will need to deliberately prioritise digital transformation by fostering a less risk-averse business culture.”
Digital narratives are elevating valuations for OFS firms with scalable tech strategies over equipment-dependent peers.
“The investment community is increasingly valuing energy-technology narratives, with service companies that clearly articulate technology-driven and recurring-revenue strategies often commanding higher valuation multiples than those tied solely to equipment cycles,” Bagga added.
However, such premium valuations hinge on demonstrated scalability.
“Emphasising digitalisation is a direct pathway to creating lasting shareholder value.”
Yet challenges persist: high upfront costs for hardware, software, maintenance, and cybersecurity deter smaller operators with legacy systems, prompting mid-tier firms to adopt modular solutions.
Since 2021, collaborations with tech giants have surged, especially post-2023 among SLB, Halliburton, NOV, and Baker Hughes, blending internal development with external expertise in AI, cloud, and automation.
This trend positions the OFS ecosystem for resilient growth, potentially unlocking value beyond Rystad’s baseline estimate through holistic digital uptake.
