How Cloud Tech Transforms Oil and Gas Industry

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With the entire world moving to the cloud, it’s hard for any industry to avoid migration. According to McKinsey and Company, 94% of enterprises already implemented a multiple cloud strategy.

In the 21st century, working without the cloud means staying behind the competition. That’s why the oil and gas industry players are adopting cloud technology to simplify a variety of different processes, streamline automation, drive convenience, and keep up with the latest innovations.

A wide variety of tools oil and gas companies use depend on real-time data collection and analytics. That’s why cloud computing is an integral part of these companies’ operations.

Let’s take a closer look at how cloud tech and computing are transforming the oil and gas industry.

1.Digital Flexibility

According to Accenture’s survey, more than 40% of oil and gas companies are worried about not keeping up with digital transformation. Such an approach may lead to falling behind the competition. They can see how the cloud can have a serious impact on their operations, from exploration to production.

By implementing cloud technology in their everyday operations, oil and gas companies gain digital flexibility.

Cloud technologies can help oil and gas industry players with such issues as data management speed, integrating new infrastructure, workforce management improvement, and downtime decrease.

What keeps companies from moving to the cloud is the lack of information and the fear of the unknown. While CIOs (Chief Information Officers) understand the importance of the cloud, they are often under the pressure to postpone implementation in order to avoid downtime.

However, decision-makers are usually ready to take small steps toward moving to the cloud. For example, they implement cloud tools like cloud-based gas software by Trellis Energy to optimize business transactions and improve data management.

2.High Performance

Oil and gas companies are always looking for new ways to optimize their performance. With a variety of tasks that comprise the company’s operation process, it’s often hard to ensure optimization.

Cloud technology could be the answer to the performance question. It can contribute to faster app deployment, lower cost of service, and simpler digital transformation. The cloud also provides such important options as advanced analytics, AI-powered tools, machine learning functionality, IIoT (Industrial Internet of Things), and automation.

Moving to the cloud can improve the company’s agility and make it more open and susceptible to digital optimization and new technologies.

3.IIoT Functionality

Many companies in the oil and gas industry rely heavily on IIOT devices (e.g. sensors and tracking equipment). They gather information about the variety of processes in the oilfield. While employing IIOT is already a part of digital transformation, it doesn’t necessarily push the companies to take advantage of the cloud.

Meanwhile, without cloud tech, the information gathered by IIOT devices doesn’t provide as much value as it can. By storing data on the cloud, which offers scalable storage solutions, it’s possible to gather, manage, and analyze information to make it usable for an efficient decision-making process.

Since cloud technology is usually more affordable than private servers are, using IIOT functionality on the cloud can be highly beneficial to oil and gas industry players without having a significant effect on their budget.

4.Convenience and Employee Satisfaction

One of the most important aspects of cloud tech is convenience for the entire team. Whatever the oil and gas company specializes in, employee satisfaction is a highly important factor to consider. With high turnover rates in all industries, holding on to top talent becomes a driving force behind many decisions.

Besides being highly useful for many aspects of business operations, cloud tech can improve employee satisfaction by simplifying a big number of their tasks. Using SaaS solutions on the cloud can streamline remote operations, make data accessible in real-time to all team members, and improve convenience.

5.Cost Cutting

Cloud solutions for oil and gas companies are often less expensive than on-premise options. Instead of making upfront payments for licenses, implementation, and updates, companies gain access to a ready-to-go solution for a monthly or annual fee.

All updates are performed in real-time without the user’s participation, thus ensuring the security and efficiency of the software.

Overall, cloud solutions are more convenient and less expensive than on-premise software. They don’t demand hiring extra IT team members to maintain local servers.

Some oil and gas industry players resist the cloud tech since they are afraid of security issues. In reality, cloud service providers beef up security, adding an extra layer to ensure data safety.

The Takeaway

Cloud technology is transforming the way the entire world works. The oil and gas industry isn’t an exception. Using the cloud contributes to digital transformation, real-time operations, convenience, faster decision making, and much more.

More and more enterprises all over the world are adopting cloud tech. In the nearest future, businesses which avoid cloud computing will fall far behind the competition.

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