IoT, robotics, XR and automation are also key technologies needed to modernize the O&G industry.
There are many opportunities for the oil and gas industry to digitally transform, but one stands above all the others: artificial intelligence (AI). That’s according to a new report from Research and Markets on the top 10 growth opportunities in oil and gas digitalization and automation in 2024.
According to the report, the digital technologies with the highest potential for upstream oil and natural gas (O&G) applications are:
- AI-based predictive maintenance
- AI analytics decision-making
- AI- and IoT-powered digital twins
- IIoT data and asset management
- IIoT remote monitoring
- Robotics for inspection and maintenance
- Autonomous drilling
- XR technology for oil exploration
- Automated well design
- Automation technologies for oil and gas electrification
The focus on decarbonization, digital transformation and technology innovation accelerated in the O&G industry in the past five years, according to Research and Markets, which predicts that these trends will continue to add significant benefits for the O&G sector and its customers for many years.
Automation technologies are becoming increasingly important in most industries, including O&G. Research and Markets reports that in 2022, the O&G automation market for products and related services reached sales of $17.78 billion, driven by the adoption of digital transformation initiatives, attractive improvements in price/performance of the technologies and the urgent need to reduce the number of safety incidents. Research and Markets forecasts the automation technologies market will grow steadily at a CAGR of 7.61% from 2022 to 2030, ultimately reaching a market value of $32 billion.
Digital technology and new business models are driving the optimization of O&G to achieve critical business goals, including:
- Driving profitability through cost reduction
- Maintaining operational efficiency
- Achieving sustainability goals
- Reducing GHG emissions
- Advancing decarbonization
- Reducing safety incidents
Artificial intelligence, digital twins, the Industrial Internet of Things (IIoT), machine learning, robotics, and Software-as-a-Service (SaaS) will dominate the technology market because they enable operational automation to reduce operating costs. In O&G, the predominant applications of these technologies will be asset management, data-driven decision-making, predictive maintenance, remote site monitoring and energy management, according to Research and Markets. These AI-augmented applications pave the way to cleaner and innovative oil and gas processes, including sub-surface 3D modeling for exploration, geostatistics, subsea production facility design, autonomous drilling operations and immersive virtual training.
The report concludes that automation technologies will play a significant role in achieving the digital transition in O&G and supporting the energy transition, claiming that these technologies are essential for the O&G industry to advance meaningfully toward the 2050 net-zero objectives.
