The oil and gas industry has embraced digitalization over the past few years as an effective means for managing costs and raising efficiencies in a challenging oil price environment. IHS Markit documents individual cases in which these efforts have helped to reduce costs by 10 to 25 percent, increase productivities upwards of 8 to 10 percent, and enable safer and more environmentally-sound operations―impressive results.
At the same time, IHS Markit notes that this isn't the first time that upstream players have turned to digitalization as a vehicle for transforming how they develop and operate their oil and gas resources. An earlier wave during the early- and mid-2000s resulted in similarly impressive one-off gains, but often struggled to achieve organization-wide acceptance and thus failed to move the needle on overall corporate performance. Now several years into this renewed digitalization push, it may be an appropriate time to review keys to success, assess whether it is delivering as expected and determine if value is being realized.
Video: Realizing value from digital transformation in Oil & Gas
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