A new report titled Digital Transformation in the Oil and Gas Markets from ABI Research has predicted that oil and gas companies will spend $15.6 billion on digital solutions to address the challenges facing the industry and adapt to shifting business models.
The report posits that, over the course of this decade, companies will ramp up their investments in applying digital technology to mitigate threats that may be operational, commercial and even existential in nature. Technology will also be employed to bring operations into line with tighter regulations aimed at addressing climate change.
ABI Research’s principal analyst for industrial and manufacturing, Michael Larner, said:
“Safety and Security are top priorities for Oil & Gas operators. Data analytics allied with IoT platforms have become essential to identifying issues ahead of time such as pipeline degradation, wellhead performance, and pollution from gas flares. Increasingly, however, network security is rapidly becoming a concern for both the C-suite and Governments.”
Gas and oil operations are by nature complex and dangerous, so oil and lubricant producers like BP, Shell and Exxon Mobil can benefit from employing technology like the Internet of Things (IoT) to monitor their production and transport infrastructure, correct issues in a timely manner and ensure optimal efficiency.
Technology can also be employed to meet environmental commitments, such as identifying and addressing methane leaks and ensuring the availability of renewable energy. The report predicts that spending on IoT-related technology will exceed $5 billion, with a further $2 billion being spent on data analytics.
