The rate of change associated with digital transformation means disruption across industries, and the upstream oil and gas sector is no exception.
Commissioned by Accenture and in conjunction with Microsoft, the survey focuses on investments companies are making—why, when and which ones—today and in the near term.
Our 2017 survey into digital trends in upstream oil and gas shows companies fear that not keeping pace with the rate of change will make them noncompetitive.
More than half recognize digital value and are looking to boost investment. In 3-5 years, over 70% plan “more’” or “significantly more” investment, transitioning to areas such as high-performance computing, wearables, artificial intelligence (AI), robotics, blockchain and mixed reality.
Big data/analytics ranks as the top investment area (46%) in 3-5 years. Respondents rate themselves as more mature in analytics than in other digital technologies, but >50% are still implementing big data storage. As analytics accelerate to artificial intelligence and machine learning, deeper maturity is needed.
Compared to prior surveys, digital’s ability to cut costs has waned as companies pursue the benefits of faster decision making, and shorter time frames to first oil and gas. By its nature, digital calls for creativity and innovation, and “lack of clear business case” is a major inhibitor to delivering value.
Cost pressures mean achieving more with less. Nearly half say the top impact of digital is to boost productivity. Companies are using digital to upskill workforces and leverage contingent labor. The majority sense being 3-5 years away from having a solid base of digital skills.
Respondents recognize digital helps address vital challenges such as cost reduction, capability improvement, health and safety, and operational effectiveness. Companies reluctant to drill deeper into digital potential run the risk of becoming non competitive.
Commissioned by Accenture and in conjunction with Microsoft
Conducted in April 2017 by PennEnergy Research in partnership with the Oil & Gas Journal
Examines current and near-term digital investments and focal areas.