By 2025, the global population is expected to exceed 8 billion people – and all will need safe, reliable, and sustainable energy. Total energy demand is universally predicted to increase due to growth in population, urbanization, and the middle class, and this is great news for the oil and gas industry. Hydrocarbons will continue to play a dominant supply role for some time, but rapid growth of hydrocarbon alternatives, improved energy efficiency, and the adoption of less carbon-intensive lifestyle choices will affect the supply and demand sides of the value chain. The global oil and gas industry will respond by becoming more customer-centric by providing personalized offerings, digitalizing their hydrocarbon supply chain to improve visibility (follow the hydrocarbon molecule), innovating with new business models on intelligent networks that eliminate complex silos and information gaps, and leveraging digital technology as a strategic enabler to drive improved business collaboration, maximize assets utilization, and a more efficient workforce.
The global oil and gas industry will be a critical enabler of economic growth in the Fourth Industrial Age. Being able to address the global mega themes and address the energy industry’s challenges will determine who will be among the winners in the next decade. The oil and gas industry is embracing sustainable lean processes such as managing by exception, extensively outsourcing commodity tasks, and optimizing existing assets while reducing costs. Advanced technology such as AI/ML, IoT, and Blockchain will help provide balance through the creation of differentiated capabilities and new business models. The Industry demands market standard cloud solutions to drive out cost, reduce complexity and to let them focus their innovation on the areas that will allow them to differentiate and collaborate with business partners. The Oil and Gas industry is the key foundation to the success of the Industrial Age 4.0, and to be able to support the world’s energy demand. Digitalization of the Oil and Gas industry is critical for success of the industry to meet the demands of the Fourth Industrial Age.
We look forward to you joining us at the 2019 International Oil & Gas Conference in Milan, Italy. Come here how companies like BP, Shell and Equinor discuss how they are embracing technology to digitize their companies and how SAP is partnering with them.