
The oil and gas industry is undergoing a significant digital transformation, with companies integrating advanced technologies into their daily operations.
According to a recent report by GlobalData, technologies such as artificial intelligence (AI), blockchain, cloud computing, Internet of Things (IoT), robotics, and virtual and augmented reality (VR and AR) are now commonplace in the industry.
Ravindra Puranik, Oil and Gas Analyst at GlobalData, highlights the impact of these changes: “Field personnel are extensively using handheld devices to gather data, make notes, and communicate with their team.
“These changes are aimed at cutting down inefficiencies in workflows for improved productivity and lower costs.”
The adoption of digital technologies is not only improving operational efficiency but also contributing to environmental sustainability.
A recent poll conducted by GlobalData indicated that companies are deploying digitalisation to lower their operational emissions.
This aligns with the industry’s increasing focus on environmental, social, and governance (ESG) objectives.
“Drones are being used to monitor methane emissions in the industry, and AI can be used to determine effective strategies to mitigate methane emissions from daily oil and gas operations,” Puranik explains.
However, the digital transformation journey is not without challenges.
The industry faces a shortage of workers with dual expertise in both oil and gas operations and digital technologies.
Additionally, increased technology deployment raises concerns about data security, as evidenced by incidents like the Colonial Pipeline cyberattack.
To address these challenges, major oil companies are forming partnerships with technology experts.
For instance, ExxonMobil and Chevron have signed long-term partnerships with Microsoft to navigate technology pitfalls and further progress in digitalising their operations.
As the oil and gas industry continues to evolve, digital transformation is proving to be a key driver of both operational excellence and sustainability efforts.
The successful integration of these technologies could reshape the future of the industry, making it more efficient, environmentally conscious, and resilient to future challenges.