Digital Transformation in Oil and Gas Industry

Opportunities and Challenges

Abstract

Digital technology can benefit the oil and gas sector by increasing hydrocarbon recovery, ensuring safety throughout the corporate ecosystem, and improving operational reliability. This study addresses the oil and gas supply chain digital transformation tendencies as well as the Norwegian petroleum refining company Equinor's initiatives. The main objective is to explore the opportunities for digitalisation in the oil and gas industry as well as the state of the industry's digital strategy more generally. The findings support the industry's major players continuing to invest in their collaborative ecosystem by partnering with their suppliers and start-ups and sharing with them a platform where data that can help them improve their economic position can easily be shared. It is recommended that they should develop a digital strategy roadmap, as in the case of Equinor, as a matter of priority. Supporting innovation and technology adoption through continued investment and the hiring of qualified experts is also of critical importance. It is also important to improve the digital skills of employees and spread a digital culture throughout the company so that they can protect themselves against future cyberattacks or other potential risks. On a global level, the successful implementation of a digital solution will reshape market dynamics (in terms of supply, demand, and investment) as well as the way energy networks are managed.