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5 Digital Technologies Transforming The Oil & Gas Sector in '24

5 Digital Technologies Transforming The Oil & Gas Sector in '245 Digital Technologies Transforming The Oil & Gas Sector in '24

The Covid-19 pandemic has intensified the preexisting imbalance between demand and supply in the oil and gas (O&G) sector. This disruption has resulted in financial instability, forcing companies to cut costs, including reductions in workforce and salaries.

Another threat is the competition from the renewable energy industry, which is projected to be valued at $1.1 trillion by 2027. The oil and gas sector needs to leverage digital transformation to overcome these disruptions and remain competitive.

This article will explore the top five digital technologies and how they are transforming the oil and gas industry.

1. AI and data science in O&G

  • Advanced analytics: Big data and AI (Artificial Intelligence) can enable powerful analytics platforms to provide insights for improved operational and managerial efficiency to reduce disruptions across the oil and gas supply chain. Advanced analytics combined with cloud software can provide significant infrastructure cost savings. 
  • Seismic data: During location search for oil drilling, advanced analytics can analyze seismic data to provide risk insights, increasing the success rate and saving time and money. Seismic data analytics can also be combined with historical data to identify oil levels in reservoirs. 
  • Predictive maintenance: Big data gathered from expensive machines working on offshore drilling platforms can be used for predictive maintenance of assets and reduce failures.

2. Industrial IoT in O&G

  • Monitoring pipelines: Leaks and damages in oil and gas extraction can cause significant financial and environmental damage. IoT (Internet of Things) can allow efficient monitoring of pipes, pumps, and filters in the system with real-time data to avoid these leaks. This reduces unnecessary manual checks of the system, and workers are only deployed when anomalies are detected.
  • Asset Monitoring: IoT-enabled sensors can provide remote access to usage and maintenance data of heavy machines installed in offshore drilling that are located in remote areas with extreme conditions. 
  • IoT in oil refineries: IoT-enabled sensors can also provide real-time data to control performance parameters. Real-time data is available around the clock to achieve accurate measurements. 
  • Oil and Gas Logistics: Since oil and gas-containing ships are big, some areas are inaccessible. LPWANs (low-power wide-area networks) provide monitoring capability to the workers on the ship with real-time data for maintenance.

3. Automation in O&G

As shown in figure 1, the global market value of automation technology in the oil and gas sector is projected to almost double and reach around $42 billion by 2030. The implications of automation in the oil and gas sector are:

  • RPA & Intelligent automation: Automating the closing process through RPA (Robotics Process Automation) can significantly reduce closing time, reduce the risk of human errors and improve audibility in the oil and gas sector. Feel free to check our article on intelligent automation in the oil and gas industry.
  • Automating O&G supply chains: Through RPA, procurement transactions can be automated to improve cycle times and achieve overall efficiency in oil and gas supply chains.   
  • Drones in offshore drilling: Drones and submersible bots are used to automate the inspection of inaccessible areas in offshore drilling. Bots can also reduce errors and increase worker safety while installing new parts and repairing existing ones in risky locations.

Figure 1. The global market value of O&G automation by 2030

Source: Statista

4. AR and VR in O&G

The AR (Augmented Reality) and VR (Virtual reality) market is projected to increase 10 times to ~$300 billion by 2024. The implications of AR and VR in the oil and gas sector are.

  • Improved training: VR headsets can give practical training to workers without the need to visit offshore plants. This can provide an efficient and safer way of applying theoretical knowledge in practical cases.
  • Improved maintenance: AR headsets can provide hands-free instruction steps and relevant tools and parts. This can significantly increase maintenance efficiency, providing graphical information and eliminating the need for reading lengthy manuals. Additionally, these AR headsets can also provide live video access to technicians who are not available at the maintenance location and also record the process for the future. 

5. Blockchain in O&G

The implication of blockchain technology in the oil and gas sector are:

  • Secure O&G transactions: Through blockchain technology, digital transactions can be performed with higher transparency and security. For example, Natixis, IBM, and Trafigura initiated a smart contract platform based on blockchain for the USA to manage crude oil deals securely. IBM has also launched a shareable ledger system based on SAP which helps improve visibility and efficiency in daily transactions specifically for the oil and gas sector.  
  • Increased trust: Blockchain technology can also enable the storage and authentication of certificates of recruitment training. It can also enable increased transparency between business partners regarding sustainability and ethical practices. 

To learn more about how digital technologies are transforming different sectors, you can check:

You can also check our sortable/filterable list of digital transformation consulting companies to find the most suitable option according to your business needs.

If you have questions about digital transformation in the oil and gas sector, let us know:

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Shehmir Javaid
Shehmir Javaid is an industry analyst in AIMultiple. He has a background in logistics and supply chain technology research. He completed his MSc in logistics and operations management and Bachelor's in international business administration From Cardiff University UK.

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1 Comments
Himanshu
Sep 02, 2022 at 06:27

By switching to digital work instructions, oil and gas companies can build a huge bank of data for audits and simultaneously use the information to predict when failure will occur.

Like most industries today, the oil and gas industry has been disrupted by technology and has taken steps to ensure it adapts to the new reality. With most offshore platforms running at 77% of their production potential, businesses are looking to Big Data and analytics as a new way to improve processes and productivity

Artificial Intelligence (AI) is a consistent buzzword in many aspects of the oil and gas sector, as well as most industrial markets globally. AI is a term used to cover many diverse technology improvements but with a focus on digital applications. We can assign everything from self-driving cars, voice commands with Apple ’s Siri, to automated new articles being generated for global media.

Bardia Eshghi
Sep 06, 2022 at 13:51

Hello, Himanshu. Thank you for your feedback.

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