The oil and gas sector is still a little behind when it comes to digital, and this could be given the risk factor involved in the oil industry. While it seemed unlikely that the oil and gas sector would get digital-friendly, it was the crash in oil prices that turned them towards the digital world.
Digital disruption helped them see the benefits it could bring to the oil and gas sector, that for so long was running with the help of poor cost management and lack of standardization. The industry has now become receptive and are willing to experiment with the new medium. Given the low oil prices, the oil industry has realized the cost and operational efficiencies provided by digital. It’s reported the cost cutting amounts to almost 20%. The International Energy Agency estimated that by 2025, the oil companies could have a cumulative capital and operational savings of up to $100 billion.
Performance monitoring and product optimization could become automated in the digital world, where something different would hit the oil companies in UAE. In the near future, there is a possibility that physical assets can be replicated to equipment in the digital form, making it far simpler to use, this technology will allow the oil industry to optimize everything, including production and maintenance.
The future of oil and gas
The one thing Oil companies in Dubai will have to be careful about is security when it comes to the digital world. There are certain risks involved, but companies will have to secure themselves against any cyber-attacks by monitoring all threats, and also identifying any discrepancies. They will also have to build robust systems which can detect any threat at the onset itself.
Texol Lubritech is one such Oil company in UAE, who is coming around in this digitally disruptive world.