Oil and gas industry has always been behind in accepting the use of technology compared to other industries. However this is slowly changing since the hit of COVID-19 pandemic in late 2019.
Like any other industry, it’s not a secret that oil and gas has hit its lowest point recently due to the virus that killed millions of people worldwide. The pandemic has forced almost every country to implement lockdown. People are staying at home and traveling has now become a thing of the past. This led to demand decreasing and the lowest it has been in decades.
The combination of these factors has destroyed even the most prevalent oil and gas companies. In April, Shell reduced its dividend from 47 cents to 16 cents per share, citing the “crisis of uncertainty”.
But it’s not all doom and gloom. While the virus has pushed oil and gas companies to review their strategies, it also provides an excellent chance for them to evaluate their infrastructure and make sensible technological investments to bring their systems into the contemporary era. Nowadays, oil and gas businesses are increasingly embracing the use of technologies due to the fact that they assist to simplify operations by making new resources more cost-effective while also enhancing existing procedures.
For instance, the proper investments in information and communication technology (ICT) and other digital solutions may go a long way toward increasing profitability and increasing organizational efficiency, resulting in a more stable operation. Investing in digital technology, according to McKinsey, may save gas companies up to 20% on capital expenditures and 5% on upstream operational costs.
Having said that, let’s take a look at some of the technologies that oil and gas companies are investing in.
Internet of Things (IoT)
IoT has the capacity to enhance performance throughout the whole upstream of the oil and gas value chain. This is the reason why the oil and gas sector uses it to boost output, optimize equipment, assure worker safety, and monitor remote locations. Real-time data gathering is enabled via sensors installed inside wells, blowout preventers (BOP), and choke valves. By optimization, companies can systematically analyze all relevant information in order to make better selections on a regular basis. Pushing the limits of optimization involves collecting more data and analyzing it quicker, which necessitates the use of additional sensors and computers.
Oil and gas companies like marine services Malaysia use this data to rapidly identify problematic equipment, allowing field engineers to forecast and respond swiftly. Oil and gas companies sometimes use IoT technologies to save maintenance costs and get extensive visibility into their equipment and operations.
AI and Machine Learning
Artificial Intelligence (AI) and machine learning are transforming every industry towards the better version of themselves, including the oil and gas industry. Apple for example is expanding its service offerings, utilizing AI to recommend music on Apple Music, assist you in finding a photo in iCloud, and use Maps to route to your next work meeting.
Drones and Robotics
More and more oil and gas companies are investing in robots and drones as they are financially efficient. At Altus Malaysia for example, they provide marine services Malaysia which 24/7 security watch on-board vessel/rig. Over the next three to five years, this category is expected to expand at the quickest rate in the industry.
Big Data and Analytics
Oil and gas companies do not have the luxury of making judgments based only on intuition. Drilling projects are huge operations that need a lot of money and heavy gear, and companies can’t afford any mistakes.
As a result, a rising number of businesses are gathering more data and running analytics to identify the best course of action. Making the correct decisions is simpler with big data.
Oil and gas businesses are continuing to make use of the cloud’s capabilities, improving data accessibility and availability while strengthening network redundancy.
The Bottom Line
Interested in learning more about how information and communication technology (ICT) is revolutionizing the oil and gas industry?
See how some of today’s most prominent oil and gas businesses are leveraging technology to develop more efficient operations and offer more value to their customers and shareholders and experience it yourself with Marine Services Malaysia.