The world is revolutionizing. Every industry has been forced to think differently. Going digital is a priority. To get or stay on top, everything must be faster, better and more accurate. Old technologies just won’t cut it anymore.
Historically, the oil and gas industry has been slower to transform. However, as the world continues to shift, leaders in the space must consider why and how new technologies will help, not hurt.
Here’s three reasons why transformation in the space is critical:
The market is exploding
First of all, there will be a significant increase in value for industrial intelligence in the oil and gas industry. How much? Studies say it could be as much as 15.4% CAGR by 2032. This means that the global Energy and Petroleum software market is set to increase to a value of $42.8 billion by 2032. All that said, if you’re not jumping on board now, you’re already almost too late.
Mandates are changing
Pretty soon, growing Environmental, Social and Governance (ESG) mandates will require oil and gas companies to comply with certain new technologies and the digitization of operations to meet worldwide climate and other environmental initiatives. New initiatives from the President Biden’s administration that would impact the oil and gas industry—and push for the need of streamlined and digitized operations— include:
- Cut emissions from existing oil and natural gas operations
- A compliance monitoring program for new and existing well sites and compressor stations
- Proposed performance standards for storage tanks, pneumatic pumps and compressors
- A zero-emissions standard for new and existing pneumatic controllers
- Reduce methane emissions from abandoned oil and gas wells
Inefficiencies are costly (and dangerous)
It’s no surprise that inefficient processes are time consuming. For example, certain testing can take two weeks or longer, which in turn significantly slows down operations. However, these inefficiencies can also lead to mistakes, and mistakes can be both dangerous and costly. Investing in the right technology will help eliminate or significantly reduce inefficient processes for smoother operations and increase productivity.
If your company in the oil and gas industry isn’t making the shift to new and better technology, you’re already behind. Take the right steps this year to improve operations and get in a more competitive place by shifting the way your company goes digital.