The energy industry faces more complex challenges than ever, some of them existential. Technological advancements plus business drivers and models, make up the foundation of a massive digital transformation, with industry applying a tremendous amount of resources to it. At a time of increased complexity, profitability pressures, and a constrained carbon future, this digital transformation will be crucial to business growth and profit but must also be sustainable. How is digital transformation measured and where is the industry along this path? Where are the big successes coming from? Do they stand on their own or are they part of a larger, integrated, sustainable ecosystem? How does a successful digital strategy come together for an energy company and are the gains sustainable?
Energy efficiency lies at the intersection of growing industry cost pressures and a focus on reducing the carbon-intensity of oil and gas operations. As a major cost component, even small improvements can have big impacts on project economics. In most assets, fuel consumption is the largest single contributor to greenhouse gas emissions. Yet, with energy efficiency only recently gaining attention as a major operational objective, oil and gas companies are still grappling with how best to achieve targeted improvements. In what areas are companies realizing the most significant early gains? Where does the next wave of opportunities lie? To what extent should companies look toward collaborative technology development partnerships and investments in start-up energy technology companies to deliver innovative solutions?
Technology and innovation continue to be the saving grace for oil and gas companies as they seek to assure shareholders of their ability to improve efficiency and embrace the opportunities emerging from growing data resources, advances in computing power, sensors, advanced analytics, and AI. Although strides have been made to reduce structural costs in both conventional upstream and unconventional projects, costs continue to grow. How will costs impact the viability of projects? How many innovations have truly reduced costs? How much more can innovation reduce project and operating costs? What interplay is needed among digital technologies, traditional E&P technologies, and changes in operational and organizational models to realize further gains?