Oil majors are looking to automate their assets to reduce the impact of demand fluctuation on revenues, according to GlobalData.
FREMONT, CA: COVID-19 has served as a wake-up call to the disruption that a sudden drop in energy demand and/or labour availability can cause, according to GlobalData, and digital oilfield technologies like digital twins and other remote monitoring solutions are likely to be game-changers in upstream oil and gas operations.
Analysts of GlobalData’s Thematic Research team opinions that technologies are like digital twins that have the potential to be the backbone of digitalisation in the sector. Oil businesses may imagine more sophisticated and reliable gear in oilfields today and in the future by producing 3D renderings and simulations of assets, systems, and processes. Another expert adds to it by remarking, the oil and gas industry has suffered considerable disruptions during the first waves of the pandemic, and now companies are aiming to automate as many procedures as possible to prevent future operational risks. This is proven by the fact that, despite the pandemic-driven industrial downturn, contract activity related to digitization in the upstream has remained resilient in the last two years. The majority of these contracts were awarded in upstream hotspots such as the North Sea, Norwegian Sea, and the Persian Gulf, as well as the US Lower 48.
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Digital oilfield technologies are now being used by operators in Southeast Asian fields to improve field development planning and increase production. Similar activity has been seen in Oceania and Western Africa, and it is expected to pick up steam as energy costs improve.
Digital oilfield technology is rapidly becoming a fundamental element of the oil and gas business, causing game-changing disruptions in upstream oil and gas operations. Oil majors like BP, Shell, and Equinor have a lot of expertise in creating technologies to make digital oilfields a reality, as they are the frontrunners in this industry. Asset management is a primary priority to enhance investment returns. To ensure long-term sustainability, companies are likely to deploy digital twins and other technology to manage every part of the asset lifecycle.