01-Feb-2022 | Market Research Store
As per ABI Research, a worldwide technological intelligence business, oil and gas companies confront a variety of operational, commercial, and existential concerns. To tackle these risks, oil and gas companies are turning to digitization, with plans to spend USD 15.6 bn on digital technology by 2030. Digitalization investments can aid in analyzing a pipeline's condition, preparing for swings in oil and gas prices, and implementing action plans to generate more sustainability initiatives and transition to generating renewable energy.
Operators in the oil and gas sectors place a high priority on safety and security. Wellhead performance, pipeline degradation, and pollution from gas explosions are all becoming concerns that require data analytics and IoT solutions to anticipate issues in advance. However, according to the report, network security is quickly becoming a worry to both governments and C-suite.
From 2021 through 2030, spending on security services is expected to grow at an average rate of 8.1 percent, reaching USD 640 mn over the forecast period. Aside from security, Oil & Gas companies are estimated to invest more than USD 5 billion in 2030 on IoT devices and application frameworks, with data analytics spending topping USD 2 bn. “The effect of the cyber-attack on the Colonial Pipeline put the subject of securing oil and gas operations in sharp relief. The problem for firms is that even spending unlimited amounts to secure networks and assets will not provide 100 percent security as attackers only need one error to cause havoc,” Michael Larner, ABI Research's Manufacturing & Industrial Principal Analyst, agrees.
Oil and gas-oriented providers like Petro.ai, Schlumberger, Earth Science Analytics, and Kongsberg as well as technology experts like AVEVA, ABB, AspenTech, Siemens, and Seeq all provide software to support operators' technical experts, are part of the technical provider ecosystem interested in helping operators to deal with the challenges.
According to the findings, the role of technology is shifting from assisting Oil and Gas companies in monitoring their big, complex, and dangerous operations to assisting them in optimizing their infrastructures to manage the unpredictability in their operational environment.