ExecutiveChronicles.com | 5 Ways Digital Technologies Are Changing the DNA of the Oil and Gas Industry | We are living in the age when the digital revolution has seemingly reshaped every area of human activity and moved the mountains across the business landscape. These days, even the industries that seemed impermeable are giving way to popular buzzwords like automation, cloud technologies, big data, and AI. So, it shouldn’t be too big of a surprise that even the century-old Oil and Gas industry that is always considered as upstream as it gets is undergoing a thorough transformation as well.
But where are these changes being implemented and how will the O&G industry look at the end of this necessary evolutionary process? Let us try to find out.
The rise of AI-powered automation
The Oil and Gas industry is a behemoth that lives and dies on operational efficiency. With the scales of this magnitude, improving the operational performance by even 1% can make the nine-figure difference. With that in mind, the rise of automation across the industry is all but expected. To put it simply, the machines are far better equipped to make instant data-driven decisions than humans. Due to this fact, the increasing level of processing management will be put under their guidance. Human activity will remain present in the production, but mostly in the fields of programming and maintenance.
Digitalized fuel delivery
If you want to see just how set in stone the Oil and Gas industry, you don’t have to look further than the oil delivery system that hasn’t changed ever since we have started driving cars. Sure, we have gotten so used to driving our vehicles to gas pumps that we rarely stop to reassess whether this is the most efficient way of delivering one product to the consumers. The answer is not even remotely. The inevitable outcome of this situation has to be the development of apps that will arrange fuel delivery directly to the customers’ doors and finally render legacy gas pumps obsolete.
The O&G industry adopting eCommerce
Gas delivery is not the only way the eCommerce is carving its way into the Oil and Gas sector. The first thing that crosses our mind when we think about this specific form of trading is probably affordable consumer-oriented products. Well, these established conceptions are about to change since the Oil and Gas industry is making big steps towards adopting B2B online commerce. These days it is becoming common for Oil and Gas giants to purchase the new oilfield equipment with nothing more than just a couple of clicks. This development is making the whole industry faster, leaner and far more efficient.
Shifting the marketing focus to marketing channels
The Oil and Gas industry never quite stood on the good side of public opinion. The ongoing climate change and the conversation this unfortunate development started have put the sector under even stronger scrutiny. This is why Oil and Gas companies will have to use all the gears of the contemporary digital marketing landscape to increase visibility, direct the chatter in a more favorable direction, and increase public trust. Since such activities have been mostly absent in the prior years, we can describe this only as a welcome change of pace.
The implementation of AI-based analytics
The global economy has become very competitive, and the Oil and Gas sector is no exception. Therefore, to gain an advantage over their competitors, O&G companies need to harvest an increasing amount of data and acquire any form of valuable insights regarding this complex industry. That creates another problem – processing all this information becomes exponentially harder with each passing day. That inevitably makes the Oil and Gas industry a major big data analytics and AI player that may even, out of necessity, push a boundary or two in these important business activities.
We hope these few considerations gave you some general idea about the direction in which the Oil and Gas industry is moving. This old giant has been leaving the impression of being too big to undergo a radical change. But, the world around us is moving, and it’s moving fast, which means that even the industry so rooted in legacy systems as O&G will have to learn a couple of new tricks. Where this road leads still isn’t clear, but one thing’s for sure – the years ahead of us will be more than exciting.