The last few decades have seen major shake-ups in the oil and gas industry, and many are noticing the pattern repeating itself today. We’re weathering the downturn related to COVID-19, while at the same time looking at a world economy prioritizing reduced carbon use. While we can’t predict the future, we can see some indications of what is likely down the road as new vaccines slow the pandemic in 2021.
Oil and gas producers and processors are looking at those indicators and asking what they can do now to prepare for the back side of the pandemic when we move to the new normal. Jim Nyquist, Emerson’s group president for systems and software, makes some specific suggestions in his article in the November issue of World Oil, pointing out four areas where companies can act now to provide immediate and future benefits.
Lean times provide an opportunity to analyze business operations and make smart, strategic investments in new technologies and processes. These items drive efficiencies to help meet revenue targets and set the stage for long-term success. In fact, digital transformation in the oil and gas industry could unlock approximately $1.6 trillion of value, according to the World Economic Forum. Many organizations don’t have to look far to find new efficiencies and quickly address the issues facing their business, as an effective digital transformation strategy makes business and operational sense.
Four areas Jim suggests considering are:
- Connected and collaborative workforce
- Prescriptive maintenance and reliability
- Smart logistics and supply chain technology
Emerson has the necessary tools for end user implementations in all four areas, and quite a few more. They’re available now and can be deployed during this lean period to be fully operational when activity comes back to the new normal.
Digital transformation was once a futuristic concept for performance improvement. Now, due to new and unforeseen challenges in market demand, staffing, and worker health and safety, it has become the only path forward. By strategically investing in the right technologies that enable efficient remote operations and help oil and gas companies meet metrics and revenue targets, the industry will be better off in the long run. Digital transformation is a requirement to keep businesses alive while ensuring the most efficient and sustainable use of resources. After all, the smarter the operations, the more reliable, clean and safe they will be.
Visit the Oil & Gas, Refining, and Chemical Groups at the Emerson Exchange 365 community for more on technologies and solutions for digital transformation or add a comment below this blog post about your strategies for navigating the future.