Oil & Gas

The Oil & Gas industry accounts for around 7% of global GDP and provides the dominant source of fuel for modern industry and most forms of transportation.

What is the current position of the Oil & Gas industry?

The oil and gas industry, a key player in the global economy, is undergoing significant changes in 2024, driven by various factors such as advancements in technology, shifts in geopolitical dynamics, and increasing environmental awareness.
Technological innovations have revolutionized the way oil and gas companies explore, extract, and refine resources. From enhanced seismic imaging techniques to advanced drilling technologies, the industry has seen remarkable advancements that have improved efficiency and productivity. Additionally, digitalization and automation have streamlined operations, leading to cost savings and enhanced safety measures.
On the geopolitical front, the industry faces uncertainties arising from geopolitical tensions, trade wars, and changing regulatory landscapes. Fluctuations in oil prices, influenced by geopolitical events, can significantly impact market dynamics and investment decisions within the industry. Moreover, geopolitical conflicts in key oil-producing regions can disrupt supply chains and threaten global energy security.
Environmental concerns remain a key theme in 2024. Climate change and air and water pollution have led to increased scrutiny and pressure on the oil and gas industry to adopt more sustainable practices. With growing public awareness and regulatory mandates aimed at reducing greenhouse gas emissions, companies are under pressure to invest in cleaner technologies and transition towards low-carbon energy sources.

Industry Trends & Challenges

Oil & gas companies face a number of opportunities and threats to their businesses. The companies best placed to deal with a challenge will consider it as an opportunity, whilst those poorly prepared will face the challenge as a threat.

Before the COVID-19 crisis, there were several trends that oil and gas companies were responding to. As the industry recovers from the pandemic some of those trends remain, and some new challenges have emerged. Those include:

  • an ageing workforce 
  • competition from alternative sources of energy 
  • digitalisation of operations 
  • emergence of AI 
  • growing cybersecurity concerns 
  • meeting sustainability goals  
  • rising production costs 
  • securing future oil and gas supply 
  • trade wars/tariffs 

Fast-growing technologies such as machine learning and predictive analytics are opening new possibilities for oil & gas. Companies that embrace these new technologies will become more efficient and sustainable.

E-learning course & Insights Platform

E-learning course

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Objectives

  • Identify the industry terminology
  • Identify the relationships between typical companies in the high tech supply chain and understand the structure of a typical business
  • Pick out some of the major issues faced by high tech companies in today’s industry
  • Differentiate between the initiatives they take to respond to business issues

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Technology

Oil & gas companies spend heavily on multi-billion dollar projects such as building or upgrading refineries or rigs, and increasing use of IT systems are helping companies run these facilities more efficiently.

As with any modern business, sophisticated IT is the key to analyzing the big data generated across the value chain and deciding what steps need to be taken to improve them. This is especially important in oil & gas, where huge vertically integrated companies must manage a presence in upstream and downstream areas in markets all over the world.

Prominent IT trends now and for the foreseeable future include:

  • artificial intelligence
  • big data analytics
  • cloud computing
  • Internet of Things (IoT)

Here we can see the relative sizes of the Computer-Aided Technologies (Mechanical CAD, Mechanical CAE), PLM, BIM, and GIS software sectors in the global oil & gas market. The total is worth approximately $US 990 million annually. Note how BIM is the largest segment, highlighting the importance of structural design within the oil & gas sector.

Learn more about our market data for the engineering software

Design/Engineering/Manufacturing Software Market Share – Oil & Gas Industry

AI revolution in the Oil & Gas industry

In recent years, the oil and gas industry has witnessed a remarkable transformation with the rapid growth of artificial intelligence (AI). AI applications are reshaping every aspect of the industry’s value chain, from exploration and production to refining and distribution, bringing about numerous benefits alongside a set of unique challenges.

Download “The Emergence of AI in the Oil & Gas Industry: Transforming Operations and Enhancing Sustainability”

In recent years, the oil and gas industry has witnessed a remarkable transformation with the rapid growth of artificial intelligence (AI). AI applications are reshaping every aspect of the industry’s value chain, from exploration and production to refining and distribution, bringing about numerous benefits alongside a set of unique challenges.

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AI Oil & Gas Revolution

The oil & gas industry is experiencing a significant transformation with the rapid integration of artificial intelligence (AI). AI applications have the potential to revolutionize all aspects of the manufacturing value chain. This rapid growth signals a profound shift in…

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