Strategic Intelligence: Cloud Computing in Oil & Gas
Summary
Cloud computing is a highly disruptive and important technology for the oil and gas industry. Key industry issues, such as health and safety, an aging workforce, the need to reduce greenhouse gas emissions, and the maintenance of high-tech equipment, can be addressed through the adoption and integration of cloud-based technologies.
The cloud in energy market will be worth $54.6 billion by 2028
Cloud computing refers to computing delivered as an online service, and it is now the dominant model for delivering and maintaining enterprise IT resources. It encompasses the provision of IT infrastructure, operating software, middleware, and applications hosted within a data center and accessed by the end-user via the internet. In the oil and gas sector, there is widespread use of infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS) models, and managed cloud services. According to GlobalData forecasts, the market size of cloud computing in the energy sector will grow at a compound annual growth rate (CAGR) of 20.9% between 2023 and 2028, from $21.2 billion to $54.6 billion.
Cloud computing transforms data into valuable insights
Cloud computing is a highly disruptive and important technology for the oil and gas industry. Remote upstream oil and gas sites and assets that often lack a sufficiently strong or reliable internet connection benefit greatly from hybrid cloud services. SaaS can help a business throughout its upstream, midstream, and downstream divisions, whether it is to digitalize oilfields and refineries or to improve its logistics management.
Fundamentally, cloud computing offers oil and gas companies flexibility and scalability. However, the vast amounts of data generated from sites and assets pose a challenge to operators. Cloud computing helps them manage this data, transforming it into valuable insights. Additionally, it serves as a vital prerequisite to other technologies, such as artificial intelligence (AI), the Internet of Things (IoT), and augmented reality (AR). These technologies enable effective data collection and analysis, facilitating predictive maintenance and reducing unscheduled downtime.
Cloud computing is the solution to various industry challenges
Cloud computing will enable oil and gas companies to effectively adapt to various challenges. Key industry issues, such as health and safety, an aging workforce, the need to reduce greenhouse gas emissions, and the maintenance of high-tech equipment, can be addressed through the adoption and integration of cloud-based technologies. The extensive data generated by equipment and historical performance can be stored and analyzed in the cloud, enabling predictive maintenance that reduces the risk of costly downtime and equipment failure. Cloud adoption will increase oil and gas companies’ resilience, ensuring profitability in the future.
Key Highlights
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