Digital Transformation of Oil and Gas Industry | Africa and the world in 2023
The Oil and Gas industry is one of the most competitive industries in the world. The energy demand will continue to rise with an increasing population and industrialization. According to BP’s Energy Outlook 2020, Oil and Gas will continue to be the main energy sources through 2035, as the world’s need for primary energy increases, that’s why the companies need to adapt to these changes to have a chance to compete in the market by embracing new technologies or they will be left behind especially in Africa since it’s the home to five of the top 30 oil-producing countries in the world.
What is the definition of Digital Transformation in the Oil and Gas industry?
We can identify Digital Transformation in the Oil and Gas industry as the process of transforming a company’s processes, products, and services to the digital age. It is a process in which companies are making use of technology to transform their business models to become more competitive, efficient, and active in a market that is evolving quickly.
According to the EY Oil and Gas Digital Transformation and the Workforce Survey 2020, The COVID-19 pandemic has made investing in digital technology more urgent, according to 58% of respondents. The majority of respondents plan to invest a great deal (29%) or a moderate amount (51%) relative to their total budget. However, just 7% of the more than 200 Oil and Gas companies examined by PwC are recognized as “Digital Champions.”
Why do companies in the Oil and Gas industry need to digitally transform before the end of 2023?
Oil and Gas companies are increasingly leveraging digital transformation to improve operational performance and accuracy. Through automation and process optimization, business operations can become more streamlined, efficient, and cost-effective. By leveraging the latest technologies, such as artificial intelligence (AI), machine learning (ML), and predictive analytics, companies can gain greater insight into the full potential of their operations, allowing them to make data-driven decisions. Additionally, these technologies can be used to improve safety, reduce environmental impacts, and drive innovation within the industry.
What are the benefits of Digitization in the Oil and Gas industry?
- Eliminate the Human Error: Digital operations are by nature more efficient and risk-free than any procedure that requires fallible humans.
- Generate Data-based Insights: In the past, you may have collected and used no data at all, or your data may have been dispersed over numerous disconnected platforms. One of the biggest advantages of digital transformation is that it will enable your company to gather and analyze data that it can then turn into insights that can generate money.
- Reduce Operating Expenses: Organizations can lose up to 30% of their annual revenue due to inefficient operations. Resources are much more likely to be wasted when business processes are carried out manually.
- Enhance the User Experience: Tailor simple experiences made possible by digital transformation are dependent on automation, artificial intelligence, and self-service tools. By giving users a frictionless experience, you may demonstrate that you have mastered the digital age.
How do countries in Africa enhance Digitalization usage across the Oil and Gas industry?
Recently, there has been an increased focus on the role of digital transformation in the Oil and Gas industry in Africa. In this context, a new study has recently been released by the University of Pretoria, titled ‘Digital Transformation in Oil and Gas Industry in Nigeria’. This research is part of the Digital Transformation and Innovation in Energy Policy and Practice (DT IP) project and aims to provide an in-depth understanding of how the Nigerian government is addressing digital innovation in its oil industry.
Another example is Egypt, the Egyptian government is committed to the development of the Oil and Gas sectors, and the Egyptian Petroleum Industry is one of these sectors that have the potential to develop. In the past few years, the industry has been developing rapidly and Egypt has emerged as the second-largest producer of crude oil in Africa. The oil industry is also one that can be developed to meet the needs of a modern and dynamic economy. This is the reason why the government has invested heavily in oil exploration and production, as well as in upgrading and upgrading technologies.
How can beXel help in your digital transformation process as an Oil or Gas company in Africa?
We understand how the Oil and Gas industry can be fast-paced, and that’s why we always develop our inspection software to fulfill the four pillars of the digital transformation process, and also to satisfy our customer’s needs.
beXel has many modules to choose from which offer operational cost savings, audit-proof & compliance, customer experience, and efficiency in addition to ensuring the safety of the workforce employing a digitalized approach such as:
- Lifting Inspection
- NDT Inspection
- Tubular Inspection
- Asset Management Software
- DROPS Survey
- Job Order Management
Let beXel be the first step into going digital in 2023 by booking your demo today!