WorldWide Drilling Resource

35 WorldWide Drilling Resource ® MAY 2019 Technology in the Gas and Oil Industry ~ Threat Or Opportunity? Adapted from Information by KPMG LLP Technology such as artificial intelligence (AI), robotics, and autonomous machinery is making an impact in industries all over the world, including the gas and oil industry. According to research by KPMG, gas and oil CEOs actually see the potential technological disruption as more of an opportunity than a threat, but admit more work needs to be done. Applying new technology is already underway in some applications. As a matter of fact, 85% of gas and oil CEOs report they have already implemented AI, or are piloting AI for some processes, while only 59% feel their company is active in adopting new technology. "Technology is disrupting the status quo in the oil and gas industry. AI and robotic solutions can help us create models that will predict behavior or outcomes more accurately, like improving rig safety, dispatching crews faster, and identifying systems failures even before they arise. This level of predictability can have a profound impact on our industry,” said Regina Mayor, global sector head, Energy and Natural Resources, KPMG. Industry confidence is up and CEOs are setting their sights on growth opportunities, with 85% being confident in continued industry growth and 88% being confident in their company’s own growth prospects. When CEOs were asked about the long-term benefits of AI, nearly half of them said acceleration of revenue growth. Other ben- efits mentioned include increased agility and improved risk management, all within a three-year time frame. So, what about the human factor? The majority of gas and oil CEOs believe technology will actually create more jobs than they eliminate. As oil prices remain high, industry confidence is up and CEOs are setting their sights on growth opportunities. "The higher price of oil is playing a significant role in driving a more positive sentiment across the industry," said Mayor. "Executives are really honing in on ways they can improve internal efficiencies . . . and the use of robotics, AI, and other means of digitalization across the industry." The outlook isn’t all positive as CEOs consider the emerging / disruptive technology risk, environmental / climate change risks, cybersecurity, and other factors as threats to achieving growth. Another concern for long-term growth is the need to appeal to future consumers, Millennials in particular. CEOs are concerned about whether they can understand and meet the needs of Millennials and when asked about the key challenges of meeting those expectations, nearly half said they struggle to understand how the needs of this generation differ from older customers. Listening to the needs of new generations will be critical as organizations shift their attention to a generation of consumers who have used the Internet most of their lives and are very familiar with technology. G&O