Digital Transformation in Upstream Oil & Gas
The upstream oil and gas sector has long embraced technological innovation as a means of increasing profitability, but the industry has been slow to adopt the global business trend of digital transformation. For long-term impact, digitization in upstream oil and gas can help companies capture a tremendous amount of value across the entire upstream oil and gas value chain, transforming all aspects of business operations.
In the context of an abundant oil and gas supply, and uncertainty about the development of demand, operators need to constantly push for greater cost competitiveness and lower emissions—and digital is the lever that can help make it happen. Producers must embrace the latest digital upstream oil and gas technology—including big data, analytics, and artificial intelligence—as part of a multipronged approach that addresses operations, organizational effectiveness and efficiency, the upstream portfolio, and building cultures for long-term business improvement.
Digital modeling and simulation tools can connect reservoir data, field architecture, equipment design, environmental impact, and economics into a single framework to help companies succeed.
Together, these developments have the potential to transform the upstream oil and gas industry’s fortunes by substantially improving capital efficiency, lowering production costs, and reducing methane emissions. For such a transformation to be successful, oil and gas companies need to fundamentally change their DNA and the way they work. A structured and pragmatic methodology that embraces an agile approach and addresses all aspects of the value chain will deliver maximum benefit.