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Formula for a digital energy future
How leaders use tech to balance today's demands with a low-carbon tomorrow
Upstream, midstream, and downstream oil and gas operations are considered major factors in global warming.
Together, they contribute 15% of total energy-related greenhouse gas (GHG) emissions. Under pressure from the public and regulators, they need to evolve into digital energy companies by synthesizing sustainability and digitalization. Yet, few have even set a net-zero emissions goal.
- Upstream|Midstream|DownstreamEnvironmental sustainability is just one item on a full agenda. Upstream oil and gas organizations are struggling to meet business goals.Percent effective at meeting goals48%Improve cybersecurity42%Execute digital transformation45%Achieve environmental sustainability objectives37%Reduce operational costs34%Enhance efficiency with automationPercent effective at meeting goals48%Improve cybersecurity42%Execute digital transformation45%Achieve environmental sustainability objectives37%Reduce operational costs34%Enhance efficiency with automation
Strategies that synthesize
- Upstream|Midstream|DownstreamA group of upstream outperformers balance today's and tomorrow's energy needs using data, digital technologies, and a sustainability focus.Upstream leaders report superior business performance85%outperform peers on revenue growth67%outperform peers on profitability73%have set net-zero emission goals76%create industry-differentiating valueUpstream leaders report superior business performance85%outperform peers on revenue growth67%outperform peers on profitability73%have set net-zero emission goals76%create industry-differentiating value
- Actions to take
- Interlock the enterprise-wide digital strategy with sustainability objectives.
- Deliver initiatives by value chain area with coordinated technology investments and necessary resources, supported with performance management.
- Develop proactive change management associated with digital initiatives.
Advanced technologies
- Upstream|Midstream|DownstreamUpstream outperformers boost performance and sustainability using monitoring, integrated data, AI/ML, automation, and predictive analytics.AI and automation power operations for leaders.70%Operationalized AI for geophysical evaluation and design81%Installed fully automated drilling rigs67%Operationalized AI for production optimizationAI and automation power operations for leaders.70%Operationalized AI for geophysical evaluation and design81%Installed fully automated drilling rigs67%Operationalized AI for production optimization
- Actions to take
- Measure how intelligent automation improves operations in key functional areas.
- Incorporate negative emissions technologies to reduce emissions.
- Add modeling and data visualization skills to talent development plans.
A cloud foundation
- Upstream|Midstream|DownstreamUpstream outperformers align their enterprise architecture with business activities so they can capitalize on technologies such as cloud.Cloud supports upstream leaders with successful execution in:86%Production and operationsCloud supports upstream leaders with successful execution in:86%Production and operations
- Actions to take
- Partner with the finance department to estimate the value hybrid cloud can deliver.
- Use blueprinting to visualize how critical parts of the business are performing today and determine how cloud supports business-critical value streams.
- Actively engage a business sponsor to turn the cloud vision into a fully funded and staffed business experiment that tests hypotheses.
Automated data management
- Upstream|Midstream|DownstreamUpstream outperformers use timely and trusted data to align business objectives and operational outcomes.Automated data management supports better decision-making and visibility into performance against sustainability targets.73%automate data management workflows65%automate extract, transform and load (ETL) data processesAutomated data management supports better decision-making and visibility into performance against sustainability targets.73%automate data management workflows65%automate extract, transform and load (ETL) data processes
- Actions to take
- Map data assets—types of data, sources, and platforms—to each business goal and technology initiative.
- Automate discovery, linking semantic enrichment and understanding of business-ready data.
- Deploy a supporting data fabric architecture to enable transparent processing of data from different sources.
Security automation
- Upstream|Midstream|DownstreamUpstream outperformers deploy security AI and automation to react more quickly to cyber threats, helping reduce the frequency, cost, and impact of security incidents.Leaders strengthen defenses with security automation.71%of upstream outperformers use automation to respond to security eventsLeaders strengthen defenses with security automation.71%of upstream outperformers use automation to respond to security events
- Actions to take
- Re-envision security around shared responsibility and shared outcomes.
- Adopt a unified strategy that modernizes security operations in line with cloud investments.
- Leverage security AI and automation to drive scale, speed, and efficiency across the security lifecycle.
Interested in more insights?
The digital energy transition: Eight strategic areas where oil and gas companies are transformingCheck out the full report for steps to support your digital energy transition:
