The worldwide oil and gas industry continues to face volatility from macroeconomic, geopolitical, and ecological pressures. Oil and gas companies have had to transform themselves into more agile and flexible organizations. Digital technology has enabled a path to digital transformation (DX) that companies are using to build flexible and adaptable organizations that can predict and rapidly respond to shifts in commodity prices. The larger, traditional oil and gas companies are also under threat from smaller start-ups with private investment funding that are using digital technologies like cloud, mobility, big data, and Internet of Things (IoT) to scale rapidly to market demands.
Top 10 2019 Predictions for Oil and Gas
These 10 predictions from IDC’s study show how, in IDC Energy Insights’ view, the new digital business model is becoming the norm in the oil and gas industry.
- Prediction 1: By 2019, 70% of upstream oil and gas organizations will have deployed a cloud-based platform to support applications such as land management and hydrocarbon accounting.
- Prediction 2: By 2024, over half of exploration companies will have developed a unified digital twin capability that spans geographies and the entire organization.
- Prediction 3: Over 50% of downstream operations will deploy IoT in isolated functional silos until 2021, when IoT platforms will be deployed to unify data governance and workstreams.
- Prediction 4: Corrosion management will become the primary asset performance management application for nonrotating equipment, with over 50% of oil and gas companies deploying this capability by 2020.
- Prediction 5: By 2020, 100% of oil and gas companies will have invested more in cloud-deployed applications than in supporting or acquiring on-premises applications.
- Prediction 6: By 2023, 100% of the supermajors and midstream companies globally will have invested in renewables and started deploying charging infrastructure to retailers to offset declining fossil fuel revenues.
- Prediction 7: By 2023, 75% of new assets will be deployed with some self-diagnosing and self-healing capabilities.
- Prediction 8: By 2021, over 40% of data generated in oil and gas production plants and in the field will be collected and orchestrated on IoT edge devices, with data historians as the core repositories.
- Prediction 9: By 2019, 40% of oil and gas companies will have deployed some form of virtual muster strategy to improve personnel emergency tracking.
- Prediction 10: By 2024, 60% of production asset maintenance decisions will be made by AI operators, without human intervention.
Learn more about the 2019 Oil and Gas Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Oil and Gas 2019 Predictions web conference on-demand.
IDC’s 2019 Oil and Gas predictions come from a dedicated team of analysts with IDC Energy Insights. Visit idc.com/energy to learn more about research from IDC Energy Insights.