The energy industry is facing a shortage. It is a shortage of time and talent, of optimization and insights. Digital transformation is changing how every sector operates, but many oil and gas operations lag in implementing the kinds of broad-based technology shifts that lead to fundamental operational change. For the industry to remain healthy and profitable through the energy transition, it needs to utilize technology to get ahead of vital business interests. New models for technology support and consultation present opportunities for companies to increase profitability even at a time when other resources are stretched thin.

Solving for the variables of price, productivity and people

Energy has always been a volatile sector, but predictability seems to be increasingly hard to come by. After relatively stable crude oil pricing across the past two years, the U.S. Energy Information Association (EIA) expects significant price drops in 2025 and 2026, with annual consumption growth still below pre-pandemic levels. Over the same period, natural gas prices are predicted to increase with rising demand. But the EIA notes, “Significant uncertainty remains within our price forecast,” owing to numerous variables in the international political and economic landscapes.¹

The global energy transition is also likely to mean the closure of many oil and gas assets over the coming decades. Many companies that had planned to invest in new projects have shifted priorities. Operations are looking for more ways to improve productivity and profitability from their existing people and assets in order to remain competitive.

Market and industry swings have made staffing less predictable, too. Operations are struggling to attract and retain talent across positions, but the rapid changes inherent in digital technologies are an extra challenge. Maximizing digital capabilities requires consistent commitment to the upskilling of existing staff, or the resources to recruit high-demand digital experts. Personnel obstacles like these are holding many companies back from making full use of their technology, just when optimization is most needed.

Getting more from digital transformation

Energy companies have already invested heavily in digital systems and those investments have proven valuable in many ways. Automation has helped operations lower carbon emissions, improve compliance, enhance safety, reduce downtime and control costs.

Recent research from Gartner highlights key trends in digital transformation for oil, gas and petrochemicals. Of these we see five particularly important areas of opportunity when an organization fully capitalizes on their technology:²

1. Responding to decarbonization: Digital assets can help optimize operations, resulting in lower emissions.
2. Extracting more value from digital investments: Returns on digital transformation aren’t always as straightforward as simple ROI, but companies know they need to be getting more from their digital spend and measuring it appropriately.
3. Strengthening digital foundations: Digital transformation should be focused on serving the larger business interest. Making IT more agile allows it to meet shifting business priorities.
4. Developing intelligent systems: AI and machine learning can support autonomous operations, optimize performance and reduce risk.
5. Adopting cloud and edge computing: These solutions can improve the accessibility and integration of data across an organization, further driving efficiency, productivity and informed decision-making.

Despite the clear promise of digital transformation, the process has stalled out in many energy companies, not least because technology has proliferated faster than it can be effectively utilized. Technology solutions appear and disappear sometimes in as little as a year. It’s not surprising that the industry has found it difficult to keep pace with integrating advanced digital tools into already complex webs of legacy systems and functions.

Most organizations have sophisticated technology in place, and they know they’re barely scratching the surface of what their systems could be doing. What they need is specialized expertise to help realize its potential.

Technical support and consulting tailored to the industry

For many oil and gas companies, third-party consulting services are a smart option for optimizing their technology platforms and providing a depth of digital expertise often lacking in house. It’s vital, however, for these consulting services to be fluent in both the technology and the industry.

For companies to derive the greatest value from their systems, they need support that goes far beyond maintenance and upgrades. The right consultancy helps you identify and solve business problems. As an example, Honeywell UOP Performance+ Services provides technology automation backed by industry experts. With this suite of services, technology is supported by experienced people who understand real-world operational challenges. This kind of holistic approach helps organizations:

• Avoid unplanned downtime by proactively identifying issues and enabling faster recovery of systems and equipment.
• Optimize process performance with AI and machine learning that enable systems to adapt to changing conditions, game out scenarios and evaluate performance versus expectations.
• Manage personnel challenges by facilitating faster technical onboarding, promoting skill-building and retention, and promoting improved safety and compliance.
• Reduce energy and emissions by using datasets to establish and continuously improve sustainability goals, emission standards and energy usage.
• Make more effective decisions that drive business benefits across the entire organization.

The oil, gas and petrochemical industries will continue to be in a state of change for the foreseeable future, but today’s digital capabilities also offer unprecedented opportunities to manage through this evolution and steer organizations to success. When robust platforms are backed by industry experts, digital transformation can fulfill more of its promise to companies and the industry.

References

¹ U.S. Energy Information Administration (EIA). (2025, January 14). Short-Term Energy Outlook. https://www.eia.gov/outlooks/steo/

² McAvey, R. and Cushing, S. Research Roundup: Top Digital Trends Shaping the Oil and Gas Industry in 2023. (2023, January 31). Gartner Research. Available from  https://www.gartner.com/en/doc/783154-research-roundup-top-digital-trends-shaping-the-oil-and-gas-industry-in-2023