The oil and gas industry has been on a roller-coaster ride for the past few years. Despite the continued growth for the demand for liquid fuel, the industry is still recovering from brutal last 6 years of weak prices, productivity efficiencies, and whatnot.
Investments in alternative renewable energy sources have gained momentum. With the growing population, the demand for energy will only increase. To stay in the game, the oil & gas sector has started adopting new technologies. So, what does the future hold for the oil and gas industry? Let’s find out.
Addition of New Technologies
Cutting down overhead costs is still one of the biggest challenges in the oil and gas industry. There was a time when companies used to consider cost management only during struggling times. But since the oil prices are really low, it becomes necessary to cut down on unnecessary expenses. Companies are embracing offshore drilling with open arms. Digital oilfield software is now being used to automate workflows, reduce costs, and minimize risks.
Blockchain technology could be a boon to the oil and gas industry. Managing data can be quite a challenging task. Companies find themselves drowning in the sea of data. This is where blockchain comes into play. For companies that are planning to streamline their data analytics unit, blockchain can be quite useful. Also, blockchain reduces the chances of fraud, error, invalid transactions, and whatnot. In addition, it will enable interoperability and facilitate regulatory reporting requirements.
Also, use of sensor technology within the industry is increasing, blockchain can store transaction and accounting data directly on the devices. This will be a great help in reducing process time.
No one likes to wait. Oil and gas companies are also on a lookout for ways to empty the oil wells fast. But equipment alone isn’t enough to accomplish that. Therefore, smart drilling will come in handy. An initiation specialist can devise a plan, perform analysis, help with equipment selection and implementation to achieve optimum results. With proper integration and intelligence, the oil and gas industry can thrive in years to come.
The Rising Demand
Sure, renewable energy sources will take over the oil and gas sector at some point in future but that time is not coming at least in the next couple of years or even decades. In third world countries like India, the demand for oil and gas will increase rapidly over the next few years. According to estimates, there are only 22 cars per 1000 people in India. Given the rapid change in the living standards in these developing companies, there will be a huge demand for oil. Also, there is a limited supply of electric cars. And the widespread use of electric vehicles will take at least a couple of years.
So, it’s safe to assume that the oil and gas sector is here to stay for the next few years. In fact, it can thrive in the coming years as new technologies will reduce the operational costs and ensure maximum profits.