The oil and gas industry (O&G) may seem like it has entered the technology revolution when consumers drive up to a gas station with high-tech pumps. There are a number of oil and gas operations that have yet to undergo a digital transformation, and maintain outdated practices instead. Their definition of digital transformation involves replacing paper-based tracking systems with old-school, error-prone spreadsheets.
How can the lag be explained? Digital oil and gas solutions technologies are proving to be a major challenge for many organizations (two-thirds), according to the EY Oil and Gas Digital Transformation and the Workforce Survey 2020. There is a lot of process-driven activity in oil and gas companies. Regulations and rules govern every step in the value chain, posing a major obstacle to effective transformation because they are designed to maintain a routine working environment.
It is essential that O&G businesses invest in digital transformation in order to increase their efficiencies, streamline their services, increase their production, and improve their ROI. COVID-19 heightened the urgency of this imperative. What are the best ways for innovators in a field to convince leaders to accelerate and improve innovation? According to 75 percent of companies, mobile and cloud investments can be derived from a company’s existing skills. These technologies are already used by more than 90 percent of those businesses. Despite this, energy service providers experience inefficiencies and lack of process management across every aspect of their business.
In the study by EY, it is highlighted that a new generation of leaders and decision-makers is required to facilitate the adoption of digital technologies with a culture of innovation.
A younger, more technologically savvy workforce is emerging and training in the O&G sector, and we must prepare for this change in industry dynamics.
Last but not least, mounting global tensions in Ukraine and overseas have prompted new technical challenges requiring new, seamless approaches to reduce costs. An ever-increasing need for innovation has been prompted by these new global threats and a post-pandemic economy that is still struggling.
Whether it is an oil field service or a production operation, digital transformation should reach every part of the oil and gas industry. Where should a business even start introducing digitalization? Investment in tools and solutions that support companies and workers in the field is the first step to digital transformation. The quote-to-cash process is streamlined and efficient with field service technology solutions.
The following are some of the reasons why the oil and gas industry should invest in innovation when weighing all the pros and cons of investing in new technology:
Rentals of Equipment: Do you know how to rent a car? It can be difficult to navigate the process. Consider managing a process that encompasses multiple elements and individuals involved in the process of equipment rental? Companies can now utilize the latest technology and equipment without being constrained by outdated processes due to the seamless integration of field operations technology.
In terms of scheduling and dispatching : Any business’s scheduling and dispatching service can make or break its reputation and business. In a world where time and speed are crucial, digitalizing the scheduling and dispatch process is essential. Using field service tech, companies can track all resources in one place and keep track of all job-related data. A serialized piece of equipment can also be tracked for movement, job history, inspection, and maintenance records.
Invoicing : Inaccuracies in invoicing can cause clients and customers to distrust each other. The O&G industry can reduce customer pushback by enhancing their invoicing capabilities, and they will also reduce billing errors and payment times by lowering customer invoicing requirements.
Collection of data: Notes are taken differently by each individual, but there isn’t much room for inconsistencies or time gaps.
New technology can make the data collection process easier and more efficient in the O&G industry. Workers can collect data using advanced logic in the field quickly and accurately, regardless of whether the workers are connected online or offline, eliminating connectivity issues. Data collection enables proactive maintenance and more reliable equipment once a proactive workflow has been created. Compliance with regulatory requirements is essential, and digitization makes it easier to achieve efficient compliance.
The maintenance of assets: Oil and gas firms can monitor and assess assets remotely that are located in oil fields, gather asset data, and gather data about their condition using digital tools and IoT. A remote measurement and understanding of an asset’s health can be achieved with these devices. Utilizing these tools can help companies reduce labor costs, boost productivity, and increase asset uptime.
Embracing digital transformation as the key to the future
A digitalized oil and gas company’s bottom line will increase in 2022, while its management will be more effective, more efficient, and more profitable. From the field to corporate headquarters, the industry can embrace hands-on digital transformation to move beyond old-school thinking and manual processes. Automation of field service will increase productivity, improve customer service, and lead to a significant reduction in billing errors if investments are made. A streamlined process that will propel O&G companies into the future is essential in the current economy and global events affecting the gas industry.
