Outlook for the oil and gas industry 2020
4: Digital leaders are confident, resilient, and efficient
The digitalization of the oil and gas industry continues at pace, despite both short-term uncertainty, driven by the oil and gas supply-demand equation, and long-term uncertainty about the rate and dynamics of the global energy transition. Digitalization has been key to efforts to improve efficiency since the 2014 downturn, but it is a trend far from its peak potential, and one that will be increasingly important as renewables become more competitive.
Almost all respondents (92%) expect either to increase or maintain their level of spending on digitalization in 2020. When we look purely at the expectation of increased spending, we see a strong and steady rise in investment over the past four years, from 39% for 2017, up to 65% for 2020.
Respondents who believe their organization is an industry leader in digitalization are more confident in their organization’s prospects, more resilient to volatility in the oil price, and are pursuing greater investment in the energy transition.