Digital technologies make existing operations more sustainable, enable competitiveness in future energy markets, ISG Provider Lens™ report says
STAMFORD, Conn.–(BUSINESS WIRE)–$III #AI–The transition to new energy sources is driving a glut of technology investment by oil and gas companies in North America, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ Oil and Gas Industry — Services and Solutions report for North America finds that, despite the world’s long-term shift away from fossil fuels, companies are innovating in areas across the oil and gas value chain, including exploration, production, transportation and sustainability. North American firms are leading the trend, making more than one-third of global investments, as they work toward decarbonization in response to changing regulations and market expectations.
“Every player in this industry wants to become an energy company, not just an oil and gas producer,” said Dale Hearn, partner in the Oil & Gas industry practice at ISG. “They need to gear up for peak oil and gas demand in the 2030s while also preparing for the energy landscape of the future, with higher investments in other carbon-free sources of energy and a stronger concern for ESG challenges.”
To compete in the long term, North American oil and gas firms need to strengthen their technology foundations, transform their operations, digitally enable their workforces and improve customer experience through digital channels while continuously strengthening cybersecurity, ISG says.
Companies continue to optimize operations through new technologies that increase efficiency and cut costs, including AI, IoT and data analytics to monitor assets and processes, the report says. While the industry has been slow to adopt cloud computing due to latency, cybersecurity, and data privacy concerns, service providers are addressing these issues and there is a trend in North America toward centralizing the management of remote assets to reduce expenses.
Many firms in the region are also embracing digital solutions for better decision-making, especially digital twins, ISG says. They allow companies to virtually model projects, such as updating existing oil and gas fields to reduce emissions and increase sustainability, before they start work on the ground. This preparation can slash the ultimate cost of the improvements.
Most capital investments in 2022 were aimed at making current fields more sustainable, while companies are also pouring more resources into green technologies such as carbon capture, usage and storage (CCUS), the report says. At the same time, North American firms are beginning to work with providers to monitor and address Scope 3 carbon emissions, which come from parts of the supply chain outside a company’s own operations.
“Comprehensive, strategic capital spending plans allow oil and gas companies to capture emerging opportunities and deliver value to shareholders,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients address a wide range of projects.”
The report also explores other trends affecting North American oil and gas enterprises, including the industry’s evolving workforce and the uncertain regulatory environment at federal, state and local levels.
For more insights into the challenges companies face, including meeting international targets for decarbonization through 2050, and ISG’s advice for addressing those challenges, see the ISG Provider Lens™ Focal Points briefing here.
The 2023 ISG Provider Lens™ Oil and Gas Industry — Services and Solutions report for North America evaluates the capabilities of 30 providers across five quadrants: Enterprise Asset Management, Next-gen IT/OT Services, Capital Projects Management, Data Management and Cloud Computing and Energy Transition Services.
The report names Accenture, Capgemini, Deloitte, IBM, Infosys, LTIMindtree, TCS and Wipro as Leaders in all five quadrants. It names HCLTech as a Leader in four quadrants and Cognizant as a Leader in three quadrants. Birlasoft and Tech Mahindra are named as Leaders in two quadrants each, and Hitachi Digital Services, LTTS and PwC are named as Leaders in one quadrant each.
In addition, HCLTech, LTTS and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
A customized version of the report is available from Hitachi Digital Services.
The 2023 ISG Provider Lens™ Oil and Gas Industry — Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
Contacts
Press:
Will Thoretz, ISG
+1 203 517 3119
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
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- Source: https://www.fintechnews.org/north-american-oil-gas-firms-innovate-for-new-energy-era/
