Emerging technologies make oil and gas industry function at ease.
The oil and gas industry are undergoing vital changes and price surge due to Covid-19 and the failed OPEC deal. Major countries like Saudi Arabia that has lent US $ 3 million value of oil to Pakistan is on the verge of cancelling the deal due to non-payment.
Such political and economic chaos has brought the oil and gas industry to a state of complexity. New implications such as the drive for greener energy and demand for more customer-centric services are further adding furore to the shareholders. The oil and gas industry players are forced to make a significant re-evaluation of energy value chains, assets and operations.
Shocking reports on oil and gas industry changing its path opposite to the direction to tailwind keeps emerging. It is estimated that nearly 70% of global electricity production will be extracted from the wind and solar energy by 2050. More reports unravelled that 50% of all new cars sold globally will be electric models by 2033. Already, the use of renewable energy in vehicles is closely watched and changed with technological developments. With all the developments given, advances in digital technology are enabling drastic changes to the energy sector.
To bring in digitisation to the energy industry, the sector should treat digital transformation like any other business corridors. They should bring innovation and effective solutions on the scale of purpose, goal and strategies.
But we can’t conclude that the energy industry is ignoring the part to invest in digitisation. Reports unfold that energy companies are increasingly investing in digital technologies over the past few years, with global investment growing 20% annually since 2014. The investment spiked to US $ 47 billion in 2016. Estimates show that this is going to grow further with oil-focused digital services raising the investment from the current US $ 5 billion to over US $ 30 billion annually by 2025.
Therefore, the energy sector is now open to adopting a change. With the emergence of technological developments, the pressure to decrease or cut carbon emissions and tackle the demand by tracking oil reserves in a cost-efficient way is increasing. As the next stage of development, the energy sector tends to acquire new workforce strategies and make data-driven decisions.
Few digital technologies that have already made an impact on the energy sector
Artificial intelligence to map oil reservoirs: There are wrong perceptions that Artificial Intelligence (AI) is not the right innovative strategy to work in the energy sector. But to break the myth, cloud-based AI platforms are being developed to analyse subsurface geophysical data. The implication of cloud-based source to keep track of data provides quick solutions that are more accurate. Drilling methods in oil and gas industry could be utilised properly with the help of AI in tracking and finding the underground oil reservoirs. A report shows that the value of AI in the oil and gas industry will increase to US $ 2.85 billion by 2022 from US $ 1.57 billion in 2017.
Machine learning as a safe haven: Machine learning will help offshore companies to function from a long distance without having to commute to the oil reserves often. AI can be used to assess the potential impacts of a new rig or drilling site. It can also aid in evaluating the environmental risks of a proposed project before the head. Machine learning services make the job safer with instrumental implementation.
IoT predicts machinery issues: Internet of Things (IoT) is specifically designed to connect and make work easy by getting access from any place. When IoT is used in the oil and gas industry, it plays a crucial role in optimizing costs. It improves safety by enabling predictive maintenance, performance forecast and real-time risk management. IoT collects data through its connections to all items of machinery. Sensors will be able to detect machine failure even before human realisation. This could prevent accidents and save money by looking at the damage predominantly before the machine gets collapsed.
Blockchain for easy transactions: The best way to speed up transactions and reduce cost at the same time is by picking Blockchain to deal with money. Blockchain connects energy producers directly with customers. It provides a secure environment to potentially send and receive data amidst the broader network functions.
Artificial intelligence featured technologies like Machine learning, blockchain, big data and IoT are setting oil and gas industry towards digitisation. The energy sector may face unprecedented challenges, but new technologies emerge every day to overcome and make the job simple.