New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Digitalisation and the supply chain
5/7/2023
6 min read
Feature
Digitalisation of the oil and gas industry and its supply chain offers increased production, reduced operating costs and enhanced efficiency. Nnamdi Anyadike reports on some of the latest initiatives worldwide and also highlights the risk.
The oil and gas industry has a number of strengths that can be deployed in its battle to combat harmful emissions and decarbonise the sector. For a start its global supply, a chain developed and honed over decades, is one of the most comprehensive and is worth about $4tn, according to EY analysts. This is already equivalent to 4% of the global GDP.
However, it has the potential to realise an even higher valuation.
The World Economic Forum (WEF) believes digitalisation could provide savings of up to $1tn for the oil and gas supply chain, while Wood Mackenzie estimates it could save upstream oil and gas companies in Europe alone up to $73bn/y.