The digital transformation of the oil and gas business is still years behind. The oil and gas business receives the lowest score of any industry vertical, 1.3, on Deloitte’s Digital Maturity Index.
Given the low score, firms cannot continue to operate inefficiently, given the depletion of natural resources and the demand for cleaner energy from consumers. As a result, oil and gas software development corporations are becoming more interested in disruptive technology.
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Innovations in Oil and Gas Technology
To remain ahead of the fierce competition, businesses are abandoning old organizational structures and implementing technology. As a result, advancements in big data analytics, robotics, artificial intelligence, robotic rig inspection applications, the Internet of Things (IoT), and improved cybersecurity are becoming more popular.
The advantages of using technology in the oil and gas industry outweigh the initial investment expenditures by a wide margin. For instance, according to McKinsey, using data analytics and relying on deep-water communication technology can help businesses save operational expenses by 20 to 25% per barrel.
Fibre connectivity accounts for 40% of offshore production output in Canada, the United States, and Norway, demonstrating that there is the potential to establish high-capacity coverage to enhance connectivity in crewless vessels. These findings offer a positive future for oil and gas enterprises that are still hesitant to integrate modern technology into their operations.
1. Digital workplace transformation
By reskilling personnel, implementing a digital-first workplace culture, and investing in collaborative technologies, digital transformation reimagines how work is done. Companies must have an inclusive and flexible strategy for digitally transforming their businesses.
Businesses must evaluate which functions need technology to generate more value before investing in the proper mix of talent, tools, and structures. Adopting digital tools and solutions to tackle existing problems is not sufficient.
The best plan is to gradually adopt the strategy while incorporating an agile approach to maximize the benefits of your transformation process. Each oil and gas sector business needs a unique assortment of digital assets, and no two can achieve the same results. The main lesson to be learned is that implementing a balanced mix of solutions and developing a strong strategy are the keys to realizing a digital-first workplace that adds value.
2. Increasing Artificial Intelligence Use
The main objective of artificial intelligence (AI) in oil and gas upstream, midstream, and downstream operations is to lower risks, boost efficiency, and increase resource value through the use of cutting-edge technology. The most capital-intensive sector of the oil and gas industry is upstream, which concentrates on producing natural gas and crude oil.
Real-time drilling telemetry allows a mix of AI algorithms and machine learning to cut the cost and construction time of wells by 15% to 20%. Additionally, artificial intelligence-based neural networks are now used in reservoir engineering to speed up traditional simulations and pinpoint the ideal field development scenarios.
Advanced AI imaging technologies accelerate exploration by using high-performance computation and algorithms to hasten the reconstruction of 3D images gathered from seismic surveying. As a result, seismic-related operations are less expensive, and suggestions for oil field operations are more precise.
Companies using AI-powered tools will record lower production costs, particularly in upstream activities, leading to increased profitability and lower end-user prices.
Automation in the oil and gas sector offers safer working conditions by eliminating manual processes and speeding up operations. For instance, automating drilling procedures like pipe handling and pressure drilling lowers costs and increases safety.
Due to the remoteness of the majority of mining locations, employing drones removes the need to pay pilots and lowers the cost of drilling and inspection activities.
Automation contributes to security by monitoring oil pipelines with crewless trucks and underwater cameras to prevent theft and assault. These developments will enhance worker security and prevent unwanted attacks on oil and gas firms.
4. Digital IIoT Technologies
Actuators, intelligent sensors, and edge nodes are used in the Industrial Internet of Things (IIoT) to find inefficiencies, spot issues with machinery, and track assets. Such cutting-edge technology has the ability to enhance quality, track supply chain operations, and swiftly communicate data for improved decision-making.
The oil and gas sector relied on manual labor to monitor and improve industrial activity for a long time. However, as IIoT develops, these devices will provide more precise data to enhance predictive maintenance (PdM) and lower the expense of equipment service.
5. Data analytics and machine learning
Big data analytics enables businesses to move away from “production at all costs” and, more precisely, forecast earnings and losses. These capabilities will help oil and gas companies better plan their drilling operations by navigating market changes and consumer behaviour.
Oil and gas businesses will be able to restructure themselves to satisfy the rising demand for clean energy while maintaining profitability with the support of this move to data analysis for future forecasting.
Businesses may optimize rig maintenance and rig scheduling by utilizing sophisticated predictive and cognitive analytics. As of 2020, the amount of annual data collected had increased by 4,300 percent, offering an untapped reservoir of knowledge that oil and gas businesses may employ to hone their processes and boost profitability.
6. Blockchain Technology
Through decentralized payments, cross-chain transactions, and creative contracts, blockchain technology improves transparency and accountability and prevents supply chain disruptions in the oil and gas sector. Additionally, shared-ledger technology has become crucial for cutting back on labour-intensive and time-consuming reconciliation operations, increasing profitability.
In the oil and gas industry, numerous companies are involved in financial transactions, which raise overhead costs and necessitate a lot of paperwork. Using blockchain technology, oil and gas firms can cut the cost of payment transactions by 30%.
The potential for changing the oil and gas industry is enormous. Shared ledgers and smart contracts impact various processes, including supply chains, loyalty programs, carbon emissions trading, incorporating Bitcoin into gas station transactions, land royalties, production sharing, and many others.
Oil and Gas Industry Digital Trends
While human effort and professional labour are still dependable in the oil and gas sector, businesses must upgrade their operations with pertinent technologies to remain lucrative. This is where the expertise of an IT consulting company becomes crucial. Consumers are increasingly becoming more environmentally aware, and businesses that do not support green technologies and practices risk missing out on prospects for growth.
Applications for inspection and quality management are two examples of how digital trends are affecting important procedures in the oil and gas sector.