The Technology Revolution in Oil & Gas Industry

Introduction

As per the World Economic Forum, the oil and gas industry is on the brink
of a new era being reshaped by technology and driven forward by the
unrestrained pace of innovation. From a business viewpoint, the players
operating in the market are constantly adopting digital technologies to
benefit from the constant influx of innovations.

Advancements in technology, coupled with the declining cost of digitization

and ever-widening connectivity between devices offers lucrative
opportunities to upstream oil and gas companies. For oil and gas
companies that are already struggling with weak oil prices and declining
operational gains, one of the prime advantages of adopting digital
technology could be the resilience these technologies offer against the
downturns of the industry. However, a complex web of interdependence
between technologies and rapid changes in the digital landscape render it
difficult for the industry to facilitate its digital transformation. Further, unlike
many other industries, the oil and gas industry has been slow in adopting
the technological innovations, particularly on the software front.

In a little over two decades from now, the world will require between 25%
and 35% more energy, primarily due to the growing global population and
affluence. The oil and gas industry is on a path of continuous evolution, and
now with digitization and technological innovations, the industry has the
opportunity to redefine itself further. With technologies such as AI,
automation can suffice the efficiency demands of both the companies and
the customers.

Digital Transformation: Opportunities in Oil & Gas Sector

The oil and gas industry is broadly a technology-based industry. Below

mentioned are the top technologies that have been adopted effectively in

© 2018 Pixelhen Creative. All Rights Reserved

many industries, and yet have been slow to find acceptance in the oil and
gas sector:

1. Robotics: Post 2014, companies coming out of the economic

collapse, are rapidly implementing robots to automate their
operations. As an instance, Iron Roughneck, a National Oilwell Varco
Inc. solution, automates the repetitive and dangerous task of
connecting drill pipes on oil rigs.

2. Artificial Intelligence (AI): AI allows companies to understand trends

that predict inefficiencies in operations. By leveraging AI, the
companies aim at improving performance operations, automate
processes, connect with IoT devices, and streamline manual
business operations.

3. Cloud Computing: With the help of cloud computing, companies can

harness a significant amount of data and further analyze it through
automation. This shall lower the operational expenses, downtimes,
and associated risk. As more oil and gas companies are integrating
cloud computing, it shall also empower the field workers to optimize
operation.

Furthermore, technologies such as digital oilfield and 4D seismic system

have the capability to reshape the way the oil and gas companies do
business in 2018 and beyond.

1. Digital Oilfield: The components are integrated by means of constant

communication on a platform from which the companies can track,
measure and manage all the data coming from all over the oilfield.
Subsea oilfield and enhanced oil recovery are some of the successful
digital oilfield platforms used to reduce production and infrastructure
cost, significantly improving the return on investment.

© 2018 Pixelhen Creative. All Rights Reserved

 2. 4D Seismic Technology: This technology is used by geophysicists
and petroleum geologists to map and interpret potential hydrocarbon
reserves.

Technology Adoption in Oil & Gas: The Key Impacts on Workforce

To ensure the forward progress of the oil and gas industry, players
operating in the industry must embrace new technology. The key impacts
of technology adoption in oil and gas can be summarized as below:

1. Rise of new skill sets: The new technologies entering the oil and gas
landscape will require working having skill sets that were previously
absent in the industry.

2. Redefinition of existing roles: Employers introducing automation in

operations can enable workers to increase productivity by adequately
utilizing their time: for instance, automation of monotonous technical
decisions can free up engineers to focus more on difficult analysis.

3. New ways of workforce management: Focus on business intelligence

software, and advanced analytics and business intelligence software
can help generate large data-sets about workforces.

4. Safer workforce: Thanks to automation of physically hazardous tasks,

digitization can lead to a safer working environment.

Further, as the global energy demand is increasing, the competition for

talented workforce has also increased amongst top companies. This, in
turn, has caused an upward trend in salary packages for skilled labor.
Additionally, the industry has also witnessed an increase in benefits (such
as bonuses, pensions, training, and allowances, etc.) provided to the
employees.

Conclusion:

The oil and gas industry has often played an important role in the global
economic transformation, satisfying the worldwide need for light, heat, and

© 2018 Pixelhen Creative. All Rights Reserved

mobility. Today, the industry has been offered with an opportunity to
redefine its boundaries by means of digitization. Now, after years of falling
crude oil prices and everyday schedule and budget overruns, along with
increased demand for climate change accountability, the oil and gas
industry has the ability of providing practical solutions with the help of
digital innovations. Digital technology innovations can help in tackling these
challenges and provide value to all its stakeholders. It shall be really
exciting to witness what the future brings for this industry and the impact it
will have on the global economy.

© 2018 Pixelhen Creative. All Rights Reserved