A CIO’s Guide to Oil and Gas Industry Trends
Over the past decade, the oil and gas industry has experienced numerous shifts and fluctuations, along with extreme volatility in oil and gas prices. A combination of erratic commodity price fluctuations, ambiguity about the future of fossil fuels, and increasingly contentious trade negotiations around the world are upending traditional supply and demand fundamentals in the [...]
Over the past decade, the oil and gas industry has experienced numerous shifts and fluctuations, along with extreme volatility in oil and gas prices. A combination of erratic commodity price fluctuations, ambiguity about the future of fossil fuels, and increasingly contentious trade negotiations around the world are upending traditional supply and demand fundamentals in the oil and gas industry. In this scenario, executives must find new ways to maintain competitiveness and growth. In this blog, experts at Infiniti have identified some of the key trends that oil and gas companies must watch out for. CIOs who understand these oil and gas industry trends can take advantage of them to enable breakout performance that will differentiate them and their organizations in the years ahead.
Oil and gas industry trends 2019
Transparency and automation
Operational transparency is only now beginning to become an industry reality and one of the widely followed oil and gas industry trends. It provides organizations in the oil and gas industry with more visibility into operational performance and also gives them the ability for effective and rapid decision-making. Furthermore, field work is expected to become less hazardous and less expensive. CIOs can expect to see large-scale assets such as offshore oil rigs operate autonomously without any human intervention.
Leveraging digital resources
It is vital for CIOs to strike a balance between leveraging digital resources for better business resilience and supporting on-demand resources and scalable technologies in an effort to make cost structures of the business more scalable. CIOs of companies in the oil and gas industry who want to enhance their business resilience in volatile markets must keep abreast with the newest oil and gas industry trends and identify ways to keep their operating models more responsive.
CIOs as change agents
Bringing digital transformation to full scale in the oil and gas industry could prove to be highly challenging for CIOs’. Some of the key barriers faced include fragmented data management, lack of relevant team skills, and weak coordination across silos. Although embracing change is paramount for success in the long run, CIOs in most oil and gas companies are yet to realize the importance of embracing change. Partnering with HR heads is a great way for CIOs to work on their change leadership competencies.
CIOs of some of the top oil and gas companies in the world have recognized that potential benefits that product-centric approaches can provide in modernizing IT delivery. Its’ scope is rising although the current implementation rate is low. Experts at Infiniti also believe that, at the current rate, by 2020 majority of the companies in the sector would embrace oil and gas industry trends such as product-centric delivery.