Two competing drivers are now driving oil and gas markets across the globe. One is the rising need to decarbonize the energy provisions, and the next is the demand for more energy in all developing countries around the world. So, the oil and gas sector corporates need to find new ways to maintain competitiveness and grow further. This article will explore some trends in the oil and gas sector, which the companies, operators, and investors need to keep an eye on.
- Enterprise capabilities diverging with changing business strategies – Paul Favret
In the oil and gas sector across the world, the refining companies have started exploring the possibilities of bioplastic and biofuel production and trying to deepen their presence in the add-on petrochemical products. Paul Favret suggests that oil and gas companies further need to try and facilitate new business innovations and try to incorporate these principles into their enterprise architecture. Business strategies tend to become much differentiated and complex, whereas the companies may need more enterprise capabilities to implement the same.
- Digital innovation
There is a massive hype that the cash flows and the balance sheets are accelerating in light of the digital transformations in the oil and gas sector. As per a Gartner study in 2021, 87 percent of oil and gas companies expect their digital initiatives to increase in the next couple of years. This digital innovation is the priority of this sector now. As per some studies, about 85% of the oil and gas sector companies assume the responsibility to create their technology platforms and try to change leadership in information technology.
- Automation and more transparency with digital twins
The concept of digital twins may deliver more value across businesses in various sectors. Digital twins are the concept of virtual representation that helps to increase the efficiency of a business through the integration of internal systems, external systems, and human activities. It will act as the digital counterpart of the process and object. A digital twin is a trending thing as it can enhance the performance of business systems. Studies have shown that digital twins will help increase the efficiency of daily operations and prevent any downtime, helping reduce the maintenance cost. It will also drive a more efficient association between the operators and the technology experts.
- Intelligent assets
Surveys show that about 50% of the oil and gas sector companies now try to increase their investment in data analytics, machine learning, artificial intelligence, the internet of things, and cloud adoption. To improve the quantity and quality of their outcomes, oil and gas sector companies are now trying out supplementary monetary and control systems with additional data based operations. There is cloud-based aggregation, application of artificial intelligence platforms, advanced analytics, etc., also coming into play. The change leaders are now responsible for creating intellectual assets for these enterprises.
As per Paul Favret all the companies in oil and gas need to be more competitive and innovative to meet the increasing demand and the changing market scenarios. They should offer a hybrid model for operations, balancing the traditional and latest capabilities to meet the continuously evolving business priorities.