INNOVATION is the ‘bedrock’ of the oil and gas industry. The HUGUES drill bit was one of the first industry inventions that allowed the creation of such a strong industry. Technology is poised to once again raise the industry up to its ‘next level’. When opportunity knocks….
DON’T KNOCK TECHNOLOGY
Yes. ‘Opportunity is knocking’ oil and gas industry – it’s in the form of, TECHNOLOGY.
The decline in oil prices is perhaps ‘forcing the hand’ of the oil and gas industry to take another look at technology, and the innovation surrounding successful technology. It is fairly well known that the industry is notorious for NOT embracing technology…doing things ‘the way we’ve always done it’; but economics and the ‘new crew’ are creating a new environment for EXPLORATION; exploration of technology and technology solutions; i.e. DON’T KNOCK TECHNOLOGY.
The oil and gas industry has traditionally NOT been an ‘early adopter’ of technology. That industry profits and earnings have been so strong, this modus operandi is somewhat understandable. However, without technology, the industry may face some very high hurdles. As HOOVER’S notes, “The profitability of individual companies depends on technical expertise and efficiency of operations.”
The energy industry is realizing the era of “easy oil” is coming to an end. As a result, oil and gas companies are beginning to proactively embrace technology, technology and digital strategies in an effort to increase production levels from progressively challenging fields, and to off-set economic pressures.
The Opportunity Technologies. These are certainly “to be determined”, but there is no doubt that any technology that creates efficiencies – in the field or at the home office – are in high demand; and any technology that provides enhanced recovery is being heavily sought by the industry. Efficiency = Cost Savings. Some of the touted technologies: RFID, Mobile, The Cloud; sound familiar….? Yes – adoption of general market technologies can create efficiencies. Other, ‘industry-specific’ technologies that might be developed and deployed include: parts manufactured for reduced friction, water recovery and enhancement technologies, even sound suppression devices.
No matter the technology, it is clear that the oil and gas industry is quickly adapting to market changes that dictate technology adoption. TECHNOLOGY = OPPORTUNITY.