Oil and Gas Industry Has a Great Potential for Digitalization

Oil and Gas firms can became one of the greatest beneficiaries of digital technologies – it’s estimated that digitalization can help to create about $1T of value in the industry, 60% of that amount is expected for upstream companies.

According to estimates, digitalization can allow oil companies to increase crude output by 2-7% while reducing operating costs by 25%. This way, about 125 billion barrels of oil can be positively affected just by digital improvement of work organization on already discovered fields. It’s no surprise that 1/3rd of Oil and Gas companies have already invested in Big Data, while another 1/3rd are planning to do so in coming years.

The end effect on global GDP is also formidable. It’s estimated that world GDP can grow by 0.8% just with the help of digitalization in oil and gas industry by 2025. Wood Mackenzie estimates the effect of digitalization at 40% of the NPV on the 10 largest petroleum recovery projects.

Experts say that digital technologies can make up for about 40% of the NPV for largest petroleum recovery projects. Overall, digitalization in Oil and Gas industry can generate about $640 billion, 65% of which comes from lowering emissions, 25% comes in form of consumer’s savings, 10% leaves to various improvements in production and resource consumption. Lowering emissions means reduction by 1,3 billion tonnes of CO2, 0,8 billions of water and prevention oil spills for about 200 thousands barrels of oil.