Digitalization has the potential to create around $1 trillion of value for Oil and Gas firms, which is needed during times of budget cuts.
The five biggest oil majors by market capitalization stated an average of 23% in terms of reductions on capital outlined in financials published before the global spread of the Corona Virus pandemic. But I expect the industry will implement more cuts and more pain as the market enters new territory during these turbulent times. With this in mind, companies should look to niche technologies that drive economic viability.
New regulations imposed by IMO 2020 were expected to create a new dynamic in Oil in Gas this year; however, the sudden fall of oil prices and volatile markets is unknown territory, to an industry heading for the breaking point. Therefore optimizing your operations and projects has never been more critical, and now is the time for a change.
This change has to be agile and within budget reach and viable timescale implementations. As the tap is turned on and off in the Oil sector suppliers, it has to align with the community to provide a more fluid and fit for purpose solution. Things you need to have, not nice to have.
A key differentiator for energy companies will be solutions that will make their projects and operations more agile, transparent, productive, and, most importantly, economically viable, as soon as possible.
Significant improvement in margin, while maintaining safety is the priority across the globe. So can we expect more cuts and more pain across the industry?
If 2020 has taught us anything, plan like the unexpected is going to happen, align yourself with the right companies, like MODS, that are flexible enough to support you, and innovative enough to be building solutions to anticipating what you need.