The oil and gas industry has always placed a large emphasis on utilising the latest technologies to improve the efficiency and effectiveness of their operations. Despite this, radical change is often avoided with advancements being carefully and slowly implemented over a longer period of time.
Technology can be adapted and applied in many ways to transform the oil and gas industry. These technological advancements vary in application but can ultimately help operational efficiency throughout the sector. In addition to this, technological advancements allow for increased safety and a reduced environmental impact as well.
Within the sector itself, there have been quite a few major technological breakthroughs in the refining operational processes. These include the digitalisation of many of the administrational and operational procedures to help save both time and money.
One of the most popular interventions to note is the Internet of Things (IOT). This technological advancement can radically improve the oil and gas industry. This evolution can help reduce the overall operational downtime whilst also saving costs by streamlining and automating certain processes.
NOC and IOC philosophies on technology adoption
A national oil company (NOC) is an oil and gas entity that is either fully or majority-owned by a national government, state, or territory. These include the likes of Saudi Aramco, Rosneft, or KOC. NOCs slightly differ administratively and operationally from their independent counterparts, international oil companies. (IOC).
National oil companies are run and administered by the state. This allows them a level of political influence that is not granted to international oil companies that they compete with. In addition to this, NOCs count for the vast majority of oil reserves around the world. This places them in a position where technological advancement remains extremely important. They sense, adapt and reconfigure operations to match and adopt the latest advances in technology.
The international oil companies such as BP, Royal Dutch Shell, and Exxon Mobil are driven by investors and technological advancements. These firms answer within an operational structure that is financially motivated to make the most out of limited resources. This underpins their philosophy of leveraging technology to maximise both their operational efficiency and financial returns.
Despite this difference in philosophies, national oil companies still have the ability to embrace technological advancements and operate at the same levels of efficiency as IOCs in order to maximise their returns for their respective states. Technology can be utilised at scale to minimise the gap between them to drive further innovation and efficiency within the sector.
ADNOC technology centre
The Abu Dhabi National Oil Company has dedicated serious resources to invest in advanced technology that can help transform and digitalise the oil giant and surrounding Middle East. They have created a state-of-the-art facility to help foster and drive technological innovations in the sector.
With this, the United Arab Emirates leads the way in the region with strategic investments in advanced technology such as artificial intelligence and automation to help build operational efficiency, data analytics to respond quickly to market dynamics, and smart asset management technologies for a sustainable future. This investment and centre serve as inspiration for others in the region to similarly invest in technology and innovation for the future.
The energy mix of the future
When discussing the future of energy production, many techniques and tools can be used to help make some of these large-scale decisions. This is another space in which technology can help evaluate large amounts of data to guide decision making around the industry.