The oil and gas industry is one of the largest and most important industries worldwide. However, the digital maturity of the sector lacks further development, as its adoption of new technologies is slower with respect to data storage and transformation. But beyond that, with the digital acceleration of the last two years, within the current context of the sector where uncertainty is present, the question arises as to why and how digital technologies can be better integrated into oil companies?

The answer lies in embracing Industry 4.0. In recent years, the hype around the fourth industrial revolution (IR 4.0) has skyrocketed, and the world is discussing the evolution of business into a transformational environment. In this is betting on machine learning to predict all equipment failures, on technologies such as the Internet of Things (IoT), and Artificial Intelligence (AI), a better world for manufacturing and industrial companies will be built.

For the oil sector, the key opportunity lies in the management of the data it produces and the development of integrated strategies to exploit its data in a more valuable way. In line with this, I will share with you three aspects that I believe are and will be fundamental for companies to embark on this path that we know as digitalization:

1| Greater connectivity

The business world is becoming more and more consumer-centric. Focusing on customer service and listening for feedback was vital in the past, but today’s businesses need to reach deeper insights into what customers need. Consequently, strengthening data integration and information sharing in operational processes will help to transversely improve the efficiency of a company’s entire value chain.

2| Internet of Things

In conjunction with Big Data, IoT facilitates multidirectional communication between people, machines, and products, streamlining real-time decision-making based on the information that the technology gathers from its environment. But it also provides multiple other benefits to oil companies, such as:

  • Risk mitigation, by making it possible to efficiently monitor and manage complex drilling operations.
  • Sustainable and productive development of enhanced oil recovery operations.
  • Facilitating access to new markets and achieving better product and process quality standards.

3| Artificial intelligence

AI will enable new levels of organizational learning focused on automation based on the development of algorithms that facilitate data processing at an unusual speed. At Nakasawa Resources, we use these technologies as tools to support us in the development of safe processes, as well as good levels of quality control of our services.

But having said all this, the reality is that all these technological tools are great levers of growth for the energy sector as well as for other industries. If their implementation continues to be postponed, there is a risk that companies will become obsolete, lose competitiveness in the market, and in the medium or long term, disappear.

The advent of Industry 4.0 heralds a new era in supply chain management. In this era, both suppliers and customers come together in completely new ways that eliminate the organizational boundaries we know today as a traditional linear chain, evolving into an integrated chain of beneficial relationships between technology and business.

However, while it is true that the fourth revolution in the energy industry remains in its infancy, the way in which we integrate digital tools into our operations and services will continue to grow, evolve and transform.

by info@nakasawaresources.com