BOSTON, Oct. 29, 2019 /PRNewswire/ --Lux Research released a new, comprehensive study Monday detailing the driving forces behind the reinvention of the global oil and gas industry for the rapidly evolving digital age. Specifically, Lux has identified four key factors contributing to changes aimed at maximizing operational efficiency across the industry: persistently volatile commodity prices; the high costs associated with workplace safety and the replacement of retiring skilled laborers; the shift toward a low-carbon economy and stricter emissions standards; and a global change in supply and demand coupled with unpredictable geopolitical factors.
Lux's new report, "The Digital Transformation of Oil and Gas," analyzes how industry leaders are adapting to meet these challenges, as well as what the evolution and maturation of this digital transformation means for the future of the industry as a whole.
"While many of the challenges faced by decision makers and stakeholders in the oil and gas industry aren't new, the solutions and the technology behind them certainly are," said Harshit Sharma, analyst at Lux Research and the lead author of the report. "We expect that in order to meet these challenges in the digital age and successfully scale global operations to meet a new stream of demand, we will see a new breed of "tech" oil companies, the disruption of traditional service companies by major software giants, the creation of data marketplaces, and more operator-to-operator digital collaborations."
Moreover, the four key challenges facing oil and gas leaders are inevitably leading toward a tech-focused future for an industry that has traditionally resisted massive or rapid change. According to Sharma, the future oil company is actually a tech company.
"The digital scale-up across the industry will eventually lead to a new era of companies that operate more like a traditional tech firm than an oil and gas company," said Sharma. "These companies will be leaders in innovation, resulting in faster, more agile product rollouts, deployments, and feedback loops, as well as an increased focus on cybersecurity and enterprise-wide data sharing."
Lux Research is a leading provider of tech-enabled research and advisory services, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux empowers clients to make more informed decisions today to ensure future success.