Taking a closer look at the energy sector – it is evident that the recent pandemic has everyone contemplating what measures to take to ensure resiliency and ways to future-proof operations across the board.
The Oil and Gas industry is no stranger to hard times, emerging from the 3rd price collapse. The industry has always bounced back and went on as normal.
However, the most recent price collapse was different, in that it took place in the context of a humanitarian crisis which caused demand to plummet.
Prior to this, many organisations across industries embarked on digital transformation strategies, oil and gas companies being no different. The COVID19 pandemic has just accelerated the rate at which the transformation was being implemented.
Given the high levels of uncertainty, research suggests that oil executives don’t expect the market to make a recovery, at least, not to the levels previously enjoyed.
Oil and Gas will nevertheless remain a trillion-dollar industry, given its role in supplying energy.
Whilst some see this as the tolling of the bell, we see it as an opportunity, one that favours the bold and the brave. The O&G companies will need to roll up their sleeves, embrace innovation and change amidst tough conditions to rethink business and operating models.
- The 3 major areas identified as ripe for transformation are:
- Digital platform to promote collaboration across internal and external parties
- Integration across systems and data stores to create visibility end-to-end, facilitating data-driven decisions
- Unlock working capital by using innovative methods and new business models
In the oil and gas industry, a crucial enabler for transformation with the deployment of digital technology platforms, is the supply chain. The supply chain needs to evolve from a traditional and disparate model to a connected supply chain, where an impact at any point, is visible to all concerned parties.
End-to-end data visibility across a consolidated network, that is accompanied with intelligent decision-making capabilities results in more resilient supply chain, unlocking greater value through improved operational efficiencies.