The Latest Technology Trends in the Oil and Gas Industry [Are You Up to Date?]

Oil and gas executives have a lot on their plates. In addition to staying compliant with rapidly-changing industry regulations, they must balance fluctuating commodity prices, shifting client demands, and encroaching competition. At the same time, they’re always looking for ways to cut costs and improve performance.

It’s not surprising that oil and gas CEOs are investing in digital transformation. Today, we’re looking at technology trends in the oil and gas industry.

5 Technology Trends in the Oil and Gas Industry​

1. Fourth Industrial Revolution Technologies​

Many types of businesses have been modernizing and innovating as the Fourth Industrial Revolution (4IR) continues to advance. Oil and gas companies are no exception. Like other industries, they’re embracing modern tools and solutions designed to automate central workflows.

Examples include:

• Data analytics
• Industrial Internet of Things (IIoT)
• Artificial Intelligence (AI)
• Virtual and augmented reality (VR, AR)
• Enterprise cloud computing
• Cloud-based ERP systems

Many 4IR tools are designed to help oil and gas employees streamline complex processes and gain visibility into every facet of their operations. In turn, quality control, root cause analysis, and regulatory compliance are simplified.

Looking ahead, 4IR systems will be beneficial as oil and gas leaders try to stay ahead of the competition and adjust to the market’s volatility. Disruptions can threaten even the most established companies, and those that are prepared with deep tech investments will be better able to respond.

To ensure user adoption, oil and gas companies should focus on organizational change management. Many 4IR technologies are designed to augment human-driven work, which can make employees hesitant to embrace them. By employing change management principles, like frequent communication and customized training, teams can address and minimize these concerns.

2. Predictive Maintenance​

For oil and gas companies, asset management is key. At every phase of their operations, there are systems and resources that must be in good working order to ensure efficient production.

To prevent costly failures, executives are investing in advanced predictive maintenance solutions. These solutions track system performance using IoT-connected sensors. Each sensor can capture and analyze an incredible amount of system data, allowing companies to identify potential problems before they occur.

Most are designed to work in conjunction with other types of smart technology, including AI and data analytics. These tools work together to continuously collect and monitor data from each asset. As they sort through the information, they can identify patterns indicating that a problem could be on the horizon.

System integration is key here. In our software expert witness experience, we have found that integration issues are one of the leading causes of project failure.

3. Digital Twins

Digital twins are virtual versions of physical assets. These models are updated continuously from real-time data, giving oil and gas execs deep insight into their asset lifecycles. With this information, they can shorten their time to market and better understand how their machines and products perform.

Each digital twin is a precise, exact replica of its material counterpart. It’s created using feedback from various data points, including:

• Simulation models
• Bills of material
• Maintenance records
• IoT sensors

Once this data is gathered and organized, it’s modeled into a high-fidelity digital version of the physical asset.

Companies can use these models to optimize various aspects of their operations, such as:

• Process control
• Configuration management
• Asset performance
• Product quality
• Pricing and quoting

4. Mixed Reality Tools

Like digital twins, mixed reality tools merge digital and physical worlds in real-time. They’re becoming increasingly useful for companies that manage complex machines and field-based services.

One example is an AR-driven training model, which appears as a hologram right on the job site. Employees wear mixed reality headsets to view the virtual instructions before beginning work. Then, they follow the steps to execute even the most complex tasks — all without leaving the field or the shop floor.

In addition, mixed reality solutions facilitate easier communication and collaboration for oil and gas teams. Businesses can use these tools to create an augmented workplace, allowing users in different geographic locations to “meet” with each other to share information and brainstorm innovations.

5. Cloud-Based ERP

As oil and gas companies take advantage of the new digital tools at their fingertips, on-premise organizational systems are becoming less common. Now, those functions are moving to the cloud.

This means that software, databases, and data are all accessible through the internet and employees can access them on any device, at any time, from anywhere. This is especially helpful for oil and gas team members who work in the field.

Some of the other reasons companies in this space are moving away from on-premise ERP and toward cloud-based solutions include:

• Cost savings
• Automatic software updates
• Immediate access to real-time data

Turning Oil and Gas Challenges Into Opportunities​

Oil and gas leaders are faced with a two-fold operational challenge: They must support and equip employees in the field while ensuring their machines and software systems are optimized.

New technologies are making those initiatives more attainable than ever before.

While we’ve outlined some of the top technology trends in the oil and gas industry, they aren’t the only ones. To learn more about the solutions that are changing this sector (and how you can benefit), contact our enterprise software consultants below.