For years, oil and gas companies have lagged behind as banking, e-commerce and retail industries embraced digitalization and new technologies to boost efficiency, bolster security, improve safety measures and increase profits. However, over the past year, the oil industry has started adopting a growing number of digital solutions in an effort to cut costs through new technologies.
The world’s biggest oil and gas firms are now using data analytics, robotics, automation, machine learning and artificial intelligence (AI). Digital disruption and transformation is the hot topic at every oil industry conference across the globe. More and more firms are also partnering with oilfield services providers with the intent of digitally transforming operations. A new era for the oil and gas industry is here.
Here are five trends that will be important for oil and gas companies to watch in 2020:
1. Greater use of AI and Automation
Artificial intelligence (AI) and automation have quickly become the next step, helping oil and gas companies improve their decision-making processes. Energy firms are diving deeper than ever before (more than a kilometer) to look beneath the surface with impressive accuracy, estimate a reserves’ feasibility and reduce the overall cost of exploring. AI capabilities are also reducing downtime in drilling projects, generating key data for production and simplifying the task of well abandonment. With the potential safety advantages, cost savings and increases in efficiency technologies like this have to offer, there is sure to be a huge amount of investment and progress in AI and automation over the next decade.
2. Transformation of the workplace and workforce
The era of long-term, consistent oil and gas jobs is beginning to give way to permanent adjustment and innovation. As oil and gas companies push to digitize and automate operations, the demand for tech jobs involving skills like coding, design, data analysis and computer system architecture has skyrocketed. The jobs of the future will involve much less routine work and more use of digital tools and agents. The complexity of the latest technologies has also created a huge shift in skills requirements. As a result, there will likely be an upskilling and reskilling of the workforce as the industry adapts to take advantage of new technologies and different ways of working.
3. De-manning of offshore facilities
Oil and gas companies in remote and hazardous locations often struggle to strike a balance between expertise and safety. Technology like robots and drones are quickly changing the way fieldwork is conducted and are proving to be an invaluable resource. Utilizing drones, for example, offers big benefits in terms of monitoring and inspecting hard-to-reach or dangerous oil and gas facilities. Multiple offshore facilities can be inspected within a matter of hours, rather than days when carried out in person. Instead of having to shut down production for inspection, companies can use technology to connect the right people to the right information remotely – saving costs and increasing safety.
4. Increased focus on cybersecurity
The oil and gas industry has a widespread and complicated production chain that can be really difficult to comprehensively defend. As the industry continues to build out a digitally connected infrastructure, cybersecurity risks have escalated. Some cyber attackers are deploying malware specifically designed to destroy or sabotage control systems, computer servers or network of factory facilities. Ransomware also has a huge impact on daily operations. With more companies incorporating technology like the internet of everything (IoE) and unmanned remote operations, financially motivated ransomware attacks pose a critical risk; well-executed attacks can cost millions of dollars in damage and down time. Understandably, a lot of activity is expected to take place on the security front this year.
5. Smart technologies boost offshore operations
Thanks to increased oil prices, creative financing options and industry partnerships, investment has returned to offshore operations. Oil and gas companies are now busy designing and engineering new facilities as cheaply and quickly as possible. This demand has also caused many of these companies to step back and take a closer look at their project development approach and find ways to overcome inefficiencies. To maximize budget and timeline flexibility, many are incorporating a process known as “smart commissioning” of new offshore facilities. Through integrating smart device management tools in the early development stages, companies are able to eliminate tasks and streamline the entire commissioning process.
It is safe to say the digitization in the oil and gas industry is here to stay. From cost savings and increased efficiency to improved performance and safety, the oil and gas companies investing in these technologies will surely reap the benefits for many years to come.
Bold Business Capital’s Oilfield Factoring Services
Does your business need additional working capital to take on new projects, adopt new technologies, hire more workers and cover expenses? From oilfield hauling and pipeline construction to drilling and exploration services, Bold Business Capital’s invoice factoring services help oilfield companies manage cash flow crunches without taking on more debt. By selling your business’ outstanding invoices, you can have cash in as little as 24 hours and secure the unlimited funding potential your business needs to grow.
If you like to learn more about how invoice factoring works and how it can help your oil and gas company, contact our cash flow experts at Bold Business Capital to get started.
