Even the most uncompromising environmentalist would, if they're being honest, admit that we still need the oil and gas industry to live our day-to-day lives. Renewable technology is neither abundant nor scalable enough to fill the energy needs of the world, and it won't be for quite some time. That means that the oil and gas sector will continue to be one of the most important industries — its importance spans oceans and borders.But what will the oil and gas industry look like as the world continues to embrace the green mentality?
These industry insiders have witnessed the changes taking place in the oil and gas industry, and they shared their opinions on the future of oil and gas with us:
1. Pierre E. Conner III, Executive Director and Professor of Practice, Tulane Energy Institute/ A.B.Freeman School of Business
“Oil and gas will be a major component of our energy consumption for many years to come. Significant capital is required in the development of existing fields, new discoveries, moving oil and gas from producing fields to consumption and refining and processing. Oil and gas provide transportation fuels and products that enhance quality of life and improve travel, commerce, and new technology. There is a supply gap of 16million bbls/day in 2040 from known fields1 because of depletion of existing production. Oil and gas provide 54% of energy demand now and will still be 48% of energy demand in 2040 under IEA SDS 20402.”
2. Dr. John Markus Lervik, co-founder and CEO of Cognite
“The future of oil and gas is to be digitally native and cloud-connected and to embrace a relentless quest for ways to improve operational efficiency across the entire lifecycle, from exploration to field operations and field abandonment. What this means is that an organization must embrace proactively vetting new technologies and become agile and fluent in making one's data both understandable and available to its own and partner applications. Last, but not least, it means learning to accept proof-of-concept failures as necessary steps along the journey to a digital-first future. The digital leap for oil and gas is imminent.”
3. Meade H. Lewis, founder and CEO of mIQroTech
“The future of the oil and gas markets revolves around one thing: Automation. Automation was designed for repetitive, dangerous tasks or tasks that require high accuracy. Therefore,the oil and gas industry is perfect for automation practices to take hold. Things like remote hydraulic fracturing procedures, robotics, and, more in line with what we are accomplishing here at mIQroTech, risk monitoring and prediction. Through these procedures, we can see this industry eliminate the worst parts; The leaks and the risks that are associated.”
4. Heena Purohit, Senior Product Manager at IBM Watson IoT
“Clients are going through a digital transformation journey to be more operationally intelligent and are transitioning from manual processes to digital and/or automated processes.
An example of this is remote monitoring through sensors and drones instead of people physically monitoring equipment. Such implementations require an IT/OT convergence, viz. the integration of data between IT systems such as IoT sensors and EDGE processors with OT Systems such as SCADA, EAM, etc. containing process and event information.
Achieving this vision not only involves a change in systems but also new ways of thinking and operating, driven by a cultural change across organizations.”
5. Ian Cogswell, Consultant to Superior Honda
“Oil and gas face stiff competition against the call to modernize our energy consumption. Solar energy, hydroelectric, and other sustainable methods of powering our lives and keeping the lights on have garnered more support and funding than ever. If a sustainable, clean form of energy is harnessed, oil and gas could see a drastically reduced influence over the way we consume energy.”
6. Andy Beck, Managing Director at kglobal
“Given the oil and gas industry’s substantial increases in upstream capital investment, optimizing production efficiency is essential. Digitization creates several opportunities to that end: maximizing asset and well integrity (optimizing production without compromising health, safety, and the environment), increasing field recovery and improving oil throughput. For too many companies, digitization has been relegated to a “nice to have” function, implemented in a piecemeal way with off-the-shelf systems. As a result, the technology has been installed on a siloed basis, limiting its full value.”
7. Matt Beckmann, Managing Director at Ascent Consultants
“A new OPEC, which we've seen for a couple of years now, that manages the supply/demand balance in the marketplace, working to keep oil prices in a range that allows these nations to support their economies which are heavily dependent on oil revenue.
A US industry that continues to lead the industry in technological advancements and production of both oil and gas. The shale revolution survived OPEC's attempts to cripple it through low oil pricing, emerging stronger and more efficient. Shale has positioned the US to be the global leader in LNG as well, giving it both a commodity and technology to export.
This will have a far-reaching impact on the geopolitical order as well. With an energy independent USA that also exports energy to its allies, it greatly diminishes the only leverage that many fossil fuel funded countries previously held.”
8. Geoffrey Cann, Oil & Gas Advisor and Author of Bits, Bytes, and Barrels: The Digital Transformation of Oil and Gas
“Demand for oil and gas continues to rise year on year, although many forecasters believe demand for some petroleum products (specifically for transportation), will flatten out within the next 10 years. The world has ample supplies of oil and gas to satisfy demand for the foreseeable future. Key drivers of change in the industry relate to pressures to reduce GHG emissions, growing demand from fast-growing Asian economies, shifting supply with the rise of North America as an exporter, and the growth of alternative fuels such as solar and wind for power generation.”
9. Roberto Casula, former Chief Development, Operations & Technology Officer at Eni
“The trajectory of the world is set toward the goal of sustainable energy. There is no question about that. We are facing a problem that is beyond simply addressing an imbalance. We are talking of the biggest issue currently faced by mankind, and it is not possible to simply declare that we will all use less energy and distribute it better. There needs to be a systemic and all-encompassing method to tackle the whole spectrum of the energy issue, its production, its distribution, its use.
At the same time, some of the world biggest energy companies have united to form the Oil and Gas Climate Initiative. The way the OGCI works is that while each company defines its own scope, the group will work as a unit on the wider objective of addressing climate change. Then will use their own expertise and know-how to find practical solution to the areas being tackled such as carbon capture, storage, and utilization, the role of gas, reducing methane emissions, energy efficiency, and transport.”
Have expert insights to add to this article?
Share your feedback and we'll consider adding it to the piece!ADD YOUR INSIGHTS