04 Nov Digital transformation in oil and gas: Are you being left behind?
Digital technology is a key enabler in the oil and gas industry. Not only does it allow you to make faster, better decisions, but it can also mean greater financial performance and an increase in business profitability.
Companies in the oil and gas industry are known for their advanced data and machinery, however, despite great advancements in technology, unfortunately, oil and gas companies have been slow to implement up and coming oil and gas technology trends. Could this mean that your company is being left behind? With a lot of companies realizing the potential for this new technology in the way of increased revenue, reduced operational costs and reliability of operations, if your company isn’t using new advancements in technology, then it could be detrimental to your business.
Cost reduction as a result of technology
Cost reduction is a big factor in any company, especially in the oil and gas industry in this economic climate. One of the challenges faced by the oil and gas industry is how to keep production costs low when input prices only seem to be rising. This is where it becomes increasingly important to analyze data to optimize your profits.
Information technology in the oil and gas industry means that you can manage and track all data, from all departments in your company, to gain a valuable insight into where your company can cut costs to stay competitive.
Real-Time Data to increase efficiency
Information technology in oil and gas production plays a vital role when it comes to doing tasks faster and more efficiently. Effective use of project management software can assist an oil and gas company in becoming productive and agile by providing the real-time data required to make important business decisions.
The collection of data for analysis provides a strong platform for making important business decisions and can assist in providing a competitive advantage.
How to successfully complete a digital transformation?
We need to remember that it’s not just a digital transformation, but an entire business transformation. Oil and gas companies face the challenge of maintaining a strong focus on their core business while improving their operations with new digital technologies and up and coming oil and gas technology trends.
Digital technology needs to be applied in a way that delivers real value to your business and addresses essential operational requirements. These new technologies should help you simplify your operation, rather than complicate things.
Senior management must form a strategic plan for how these new technologies will help their business and ensure that a well-managed transition is implemented. As with any effective system, strong support is required from the top, so senior management must be on board for the best chance of success.
While there are challenges to digital transformation in the oil and gas industry, these new oil and gas technology trends help companies become adaptable and cost-efficient so that they can continue to succeed long into the future.
Digitalization has become critical to survival in the oil and gas industry and companies are already making significant investments in digitalization in key operational areas including drilling and production, as well as asset management.
If you’re new to the digital world and are looking for a top oil management software solution to revolutionize how you run your exploration and production business, try Micotan’s “Generwell” software. Our world-class asset lifecycle software directly reduces your cycle time from idea to abandonment and reclamation.