An ever-increasing demand for its products, limited substitutions, and a high barrier to entry has been a formula for success that the oil and gas industry has enjoyed over the past 7 decades. In fact, the industry that hasn’t faced any major threats since the “peak oil” theory was proven wrong in 2009. The real question is how the industry will react under the long-term outlook of “peak demand.”
Oil and gas will continue to play a significant role in global energy production regardless of the speed or magnitude of an energy transition. That same transition, however, will also reorder the competitive landscape—meaning that global demand for oil and gas will change.
While many operators recognize this challenge, most still rely on their traditional way of doing things. Meanwhile, those operators that demand control of their future position in global energy production are forging ahead into new territory by digitally transforming their operations at a time that still feels relatively comfortable. They’ve recognized that, while traditional approaches served the industry well for many decades, the chance to reimagine how they do things is not something to be taken lightly.
While incremental improvements in efficiency—the kind due to technology, training, or process—have always improved the industry, a digital transformation represents the chance to holistically link what was previously isolated, a chance to reconfigure our operational structures in ways that render them more efficient, more productive, and safer for both people and the planet.
It’s a change, and change presumes risk. But nearly all industry leaders would accept a certain level of temporary interruption or internal pushback to avoid being left behind. After all, it's in everyone’s interest to choose the path that’s most conducive to sustainable growth.
There’s beauty in taking such a risk. Those who leap toward fully connecting and automating their operations will be the ones to lead the global landscape into the future. Why? Because digital transformation is a paradigm shift—a vertical leap onto a whole new plane. Rather than opting for different combinations of previously existing pieces, these forward-thinking players are the ones altering the entire gameboard.