Volatility has been persistent in the sector for a while now. The industry has been ridden with production oversupply in the mix of global energy markets, since the past three years. This has resulted in a significant and sustained depression in the oil prices, which has, in turn, impacted the entire O&G ecosystem. In order to survive in the projected market conditions and the current one, there needs to be a significant amount of changes that need to take place in the way oil and gas companies operate.
The market and the industry overall are forcing companies to revisit business capabilities and bring home newer ways to conduct businesses.
This includes strategizing and staying at the top of their game in this dynamic and volatile environment.
It is true that digital transformation brings many opportunities for the operators in the O&G industry. The falling of crude has brought the necessity of a shift in agility, due to which companies much explore newer technologies that help them sustain in these uncertain times. In order to enable, sustain and make marked progress in their exploration, development and production ambitions, companies need to be experimenting and testing newer technologies that improve their processes and decision making. Necessary changes need to be implemented in order to bring a shift from traditional and integrated oil companies. These changes need to address throughout upstream, midstream and downstream processes. Shifting the problem from suppliers to buyers is hardly a solution to this problem.
A lot of companies today are engaging with Pureplay, that specialize in the specific parts of a value chain. These are the companies driving change in the market dynamics with design and building innovative solutions around their specific areas of interest.
Optimization can cause significant gains and better optimization of the maintenance of equipment in the industry. Analytical technology prowess must be gained by the top players to bringing insights timely, so they can be acted upon.
Equipment criticality and understanding its nuances is vital since the costs of maintenance can impact the lifeline of the equipment, thus impacting the production efficiency.