If you haven't read the recent Deloitte report on digital transformation in oil and gas, let me share the key thesis with you.
The report positions digital transformation as the 'sitting duck' for oil and gas (O&G) companies that are ambitious enough to embrace the digital revolution wholeheartedly. For those who are bold, play the game well and seize the opportunity, the benefits are immense and transformative.
From working smarter and faster to saving millions in operating costs and driving operational excellence, digital transformation in oil and gas holds the key to the success or failure of organizations today.
In this blog, I'll discuss the key technologies and trends driving digital transformation in the oil and gas industry, how to transition from manual to digital processes and showcase the gold standard in digitalization with successful digital technology case studies.
Let's get started.
Digital transformation in oil and gas industry refers to the deployment of digital technologies that revolutionize the processes, people, culture, and systems within oil and gas companies.
Since the advent of the digital revolution, new technologies have been introduced that are designed to improve productivity, drive business growth, and transform business models.
New emerging technologies such as digital process automation, Internet of Things (IoT), artificial intelligence (AI), virtual reality and big data analytics drive significant change within the oil and gas industry.
New ways of working and communicating, digital-focused roles and even language and vocabulary have evolved alongside the development of these technologies.
This seismic shift in the way oil and gas companies operate, perform and work cannot be understated.
The importance of digital transformation was recently emphasized in the New Accenture ‘Pulse of Change Index’. Accenture surveyed C-suite leaders who said technology holds the biggest opportunity and impact for organizations in 2024.
This report underpins the central role of digital transformation in oil and gas.
Many organizations are currently on their digital transformation journey. According to EY, over 50% of organizations are already automating work.
This underscores the ongoing adoption of technologies in organizations to transform how employees work, enhancing conditions so they can concentrate on value-added tasks.
I recently hosted a webinar which focused on oil and gas digital transformation during the Oil & Gas Automation and Digitalization Conference and Exhibition.
In the webinar, I spoke about how digital transformation drives cost savings, productivity improvement and managing risk in the oil and gas industry.
I also provided actionable tips on how to drive a successful digitalization project and choose digital technologies that support your business goals. If you're serious about accelerating digital transformation in oil and gas in 2025, I'd recommend watching my presentation. I hope you enjoy it!
Digital process automation focuses on automating manual tasks in the oil and gas industry. At FlowForma, we see digital process automation as the foundation for digital transformation.
By, automating people-centric tasks, organizations will establish a base layer of organizational data to inform additional technology strategies such as artificial intelligence (AI), the Internet of Things and augmented reality (AR).
As shown in the image above, process automation should sit at the heart of your strategy, collecting operational data across all functions, showcasing this data to managers and business leaders and providing a real-time view of activities across the business for informed decision-making.
Logistics and fleet management
Employee/Supplier onboarding
Site visit management
Incident management
Regulatory compliance
Purchase requisition
Upstream/downstream processes
Preventative maintenance tracking
IoT devices are one of the many new digital technologies to emerge in the digital age. In the oil and gas sector, IoT devices provide visibility for equipment and facilities. The devices monitor facilities and identify equipment failures. This information is then provided to maintenance workers onsite to address the technical issues. IoT devices play an increasingly important role in reducing downtime and ensuring revenue continues in the oil and gas sector.
Another key area that IoT devices support is health and safety in oil and gas. IoT devices work 24/7 and in real-time to monitor the environmental workspace. Workers in the oil and gas industry risk exposure to hazards such as gas leaks. IoT devices monitor these potential risks and provide warnings to managers when safety issues are detected.
The possibilities for AI are endless but some of the key use cases I see regularly include:
AI supports collects, evaluates and produces data models to predict when equipment will deteriorate. Oil and gas organizations use this information to schedule equipment maintenance and prevent downtime.
Organizations can now monitor, analyze and forecast carbon emissions with the power of AI smart monitoring. Predictive modelling supports organizations in managing their carbon emission targets.
While still yet to reach mass market commercialization, AR and VR technologies are being adopted by organizations globally as part of strategic digital transformation initiatives. I see the following trends emerging in this space:
The oil and gas industry operates in hostile terrains that often present hazards for workers on the ground. Training delivered via VR can provide recruits with real-world skills and learning without risking onsite exposure to a hostile environment. I see the VR trend continuing in 2025 and expanding its application with oil and gas companies.
In the digital age, visual assistance is provided via AR smart glasses. In the oil and gas industry, virtual assistance provides workers with access to real-time data to improve efficiency, safety, and support. This information is delivered via smart glass technology to support tasks in real time.
The digital revolution has introduced productivity improvements that far surpass the Industrial Revolution of the 1700s and 1800s. According to a report by McKinsey, digitizing operations could generate as much as USD $250 billion in value by 2030.
At FlowForma, we see productivity improvements as one of the key outcomes of digital process automation.
By automating manual tasks such as HR, finance, operations or IT, organizations streamline operations and achieve significant time savings for labor-intensive tasks. This operational efficiency improvement can save time and money for oil and gas operations.
When process steps are signed, historical form activity is visible, and a snapshot of the workflow design can be captured at any specific point in time. This provides organizations with a proven history of processes that can showcase adherence to regulations.
Today, digital transformation in oil and gas plays a central role in keeping workers safe. Key technologies are used to improve health and safety in the oil and gas sector including:
Automating manual or paper-based health and safety tasks has a major impact on workers' safety. With real-time data and access to dashboards and reports, managers can analyze health and safety processes to address issues and meet oil and gas regulations. Operational efficiency will also be improved with streamlined communications between all stakeholders in the health and safety process.
Drones provide oil and gas workers with access to areas of facilities that are hard to reach or may be dangerous to inspect. Drones can relay real-time recordings of facilities for health and safety inspections, without having to put workers at risk. I see drone technology increasing in the years ahead as the quality of the video improves and the technology advances providing immense benefits to the oil and gas sector.
Wearables can monitor the vital signs of oil and gas workers in real-time and provide management and alert management when there are health and safety concerns.
Recording data via spreadsheets and emails can lead to poor data analytics and reporting. Emails can get lost, Excel files can get corrupted or data replaced. This can lead to inaccurate reports of key business data.
Using multiple systems to collect, store, and report data can cause challenges when reporting on key business data. Using systems that integrate easily will allow the passing of data between systems for accurate reporting.
As digital technologies become increasingly vital in the oil and gas industry, the demand for digitally savvy employees has risen.
But, there is a lack of workers with tech skills available in the oil and gas sector. This is due to an aging workforce, strong demand across all industries for tech-savvy employees and challenges retaining key staff.
With these current tech skills challenges, no code technologies are ideally suited to empower workers with digitalization, without the more technical coding skills required.
The idea is that any worker can use the platform to digitalize. In the FlowForma world, no code platforms empower organizations to digitalize without delay, providing a significant advantage over other tools that require lengthy training and teams of technical workers to manage the platform.
For more insights into no code technology, I'd recommend watching Rob Koplowitz, Forrester Research giving an insight into the difference between no code and low code technologies.
Digital transformation can also help to alleviate the skills shortage by:
Technology adoption and automation will drive operational performance, reducing the pressure on new hire requirements.
Reduce hiring delays by streamlining and automating the onboarding process for new employees.
Empowering a tech-savy workforce to work smarter, not harder will improve retention levels.
Legacy systems that aren't part of a wider tech strategy continue to hamper growth in the old and gas industry. Legacy systems can cause security risks, provide siloed data and slow productivity in an organization.
I always recommend a tech stack analysis to all of our clients as a first step of engagement. This uncovers whether legacy systems may be more of a hindrance than a help in your technology strategy.
One example of where we supported widespread digital transformation is with Dresser Natural Gas. Headquartered in Houston, Texas, Dresser Natural Gas Solutions is a leading provider of measurement, piping, and instrumentation solutions to natural gas distribution and transmission customers in more than 100 countries.
Dresser Natural Gas Solutions required a full replacement of its legacy IT platform. The old platform required heavy coding and development and was slow to make simple changes.
We worked with Dresser Natural Gas Solutions to introduce new ways of working, new fast digital processes and analytics. FlowForma Process Automation successfully replaced the old system and increased efficiency and helped an established company feel like a start-up.
You can learn more about this digital transformation success story here.
Before you start sourcing technologies to support digital transformation, you need a strategy. Your digital strategy should outline the people, budget, resources and goals you have for the project. You'll need to have a clear timeline for the project alongside smart goals for each milestone of the project.
Goals make include:
Operational efficiency
Cost savings
Health and safety
Compliance
Improved data analytics
Streamline data management
Accelerate digital innovation
Support energy transition
Improve project management efficiency
Analyze the business needs for the digital transformation project and project outcomes to make a business case. At FlowForma, we use ROI projections to showcase the potential outcomes for an organization. This ROI projection can support budget release for the project and make internal conversations with budget holders easier and faster for digital investments.
Oil and gas companies that succeed with digital transformation have one thing in common, they have introduced a digital culture. A digital culture is critical for the successful adoption of technologies by the workforce.
Organizations should appoint a digital ambassador to champion digital culture as a mindset and also encourage the adoption of new digital tools, ways of working and communicating.
When a digital culture is adopted across an organization, oil and gas companies can achieve true economies of scale.
Digital transformation is now fully embedded across the oil and gas industry. Emerging technologies such as digital process automation, AI, drones and IoT devices support the successful digital transformation of organizations today. The potential benefits are transformative and can provide a competitive advantage in a traditionally unpredictable market.
Digital process automation is one of the many digital tools that support successful digital transformation in the oil and gas industry. As a core base for digital transformation, I recommend starting your digital transformation project by automating key business processes to collect data across the business. Then, we will use this data analytics as a foundation for digital transformation growth.
Easily integrated with any tech stack, FlowForma is ideal for starting and scaling digital process automation in the oil and gas sector. Accelerate your journey to digital transformation success by speaking with our team of digital transformation experts.