With the energy industry facing a period of reckoning, and under pressure from low oil prices and high operating costs to grow and invest sustainably, there is a movement among oil and gas companies to turn to Silicon Valley to help streamline operations and increase efficiency. The high prices of oil field equipment for sale is also a big concern. Microsoft and many other technology giants, including Amazon, Google and ABB Group, sell digital solutions to some of the world’s largest oil and gas companies. The estimated addressable market for digital oil and gas solutions will grow by 500% over the next five to six years. It will save oil producers $150 billion annually and create a large market for technology companies to compete in the high-margin cloud computing business.
The world’s largest oil and gas companies are teaming up with major technology companies to tap into opportunities and efficiencies in their key growth priorities, particularly in the Permian Basin. Greater reliance on digital solutions will help increase efficiency and accelerate efforts towards a more sustainable oil and gas sector.
There is a United Nations call for developing digital solutions that can help oil and gas companies accelerate their progress toward net-zero emissions. With the advancement of Industry 4.0 and innovations in the oil and gas (O & G) industry, trends will change the industry in terms of efficiency, safety and intelligent solutions. Adapting to new technologies will help oil and gas operators and companies to meet emerging challenges and move forward. There might also be possible innovations made to oil field equipment for sale.
Technology has the potential to enhance the performance of the entire oil and gas value chain of upstream by optimizing and automating the industry. Applications in the oil and gas sector produce complex models that analyze large and varied data to deliver accurate results that enable companies to identify profitable opportunities and avoid unknown risks through real-time insights. Used by many industries to predict trends, manage inventories at all levels, process large amounts of data, and much more, the gas and oil industry uses automated processes and forecasted trends to improve its performance and make its operations more efficient and cost-effective.
The creation of virtual replicas of the oil and gas infrastructure and individual components enables real-time testing and analysis based on operating data, which in turn can optimize process efficiency, reduce costs and disrupt real processes. The oil and gas industry uses innovation trends to increase the efficiency of businesses, workers, oil field equipment for sale and costs. By implementing technologies such as collaboration software, companies can connect their oil and gas businesses and overcome technological factors that historically influenced and inhibited the industry’s transformation.
Its eponymous platform helps oil and gas companies and other industrial companies reduce the cost associated with machine downtime. Oil and gas companies, petrotechnical experts and process engineers can plan optimal production schedules and reduce downtime with intelligent automation solutions that reduce interaction time, detection, diagnosis and resolution. In this way, cloud-based platforms enable these companies to share and coordinate plan-based forecasts and make decisions to improve their business.
One could argue that in a world increasingly dependent on fossil fuels, technology companies are helping oil and gas companies to be as energy efficient as possible.
Most oil and gas companies have made progress reducing their carbon emissions and are now considering investing in technology to further progress. They are trying to build an ecosystem of partnerships to accelerate the impact of digital technologies, and are debating whether core digital skills should be internal skills. An important digital strategy for oil and gas companies, for example, is Brazil’s Petrobras, which is undergoing a strategic reboot and sees digital technologies as the key to adding value and improving its operations.
When it comes to implementing modern technological upgrades and making good use of data, oil and gas companies lag behind most industries for several reasons. Over the past year, Big Oil and many upstream and downstream companies have begun to deploy a growing number of digital solutions to develop cost-cutting innovations, new technologies and oil field equipment for sale. A recent IBM report found that 82% of oil and gas executives consider innovation is important to improve their companies success but only 40% implement innovation strategies.
In the face of persistently low oil prices, energy companies are using digital technologies to use masses of publicly available data (big data) to sustain and boost production. Drones are used to inspect inaccessible places in the oil and gas infrastructure, virtual reality headsets and augmented reality headsets help train engineers, and the applications of digital technologies are too numerous to list here. Given the estimated total impact of hundreds of billions of dollars on oil and gas over the next ten years, it is hardly surprising that the oil and gas industry has shown enormous interest in the use of IoT and application of IoT in industry and other digital technologies that focus on efficiency and security enhancements.
Other emerging digital technologies that have impacted and continue to influence the way we work in the oil and gas industry include 3D virtual modeling and drone technology.
The abundance of cheap natural gas in the United States has opened up several options for US oil and gas companies. CCUS technology has been an investment area for many of these companies due to the geological advantages of storage. Cheap natural gas as an input for hydrogen production is also a proven area in which these companies can make use of existing know-how.
Reducing Scope 1 emissions is relatively easy for oil and gas companies, including replacing old kits with more energy-efficient equipment and installing lidar to detect methane leaks. Overall, the adoption of these five uses could bring the oil and gas industry a value of $250 billion by reducing BOE costs by 20-25% and capturing 60-70% through available connectivity technology. Almost 50% of respondents in the oil and gas sector said that their companies invest in energy efficiency, cleaner fuels for the operation of power plants and the acquisition of companies that are their core business.