“Significant obstacles” remain in overcoming “silo mentalities” and bringing digital technologies to oil and gas, according to a new report from EY.
In a survey of 100 oil and gas executives globally, 41% said that agreeing on plans to roll out digital tech with executive teams and the board of directors is a “key strategic problem”.
Meanwhile less than a third believe that their investment vision is aligned with senior management colleagues.
Another “fundamental challenge” lies in integrating new digital tools, with 36% citing it as their greatest operational barrier.
Respondents said nearly half of their digital technology investment is allocated to outsourcing.
However, 89% of respondents said they expect to step up their digital investment over the next two years, with robotic automation among the main investment areas.
EY’s global oil and gas advisory leader, Jeff Williams, said: “If businesses can think holistically about technology, they can go further to unlock ambitious growth opportunities and emerge as industry leaders.
There still appears to be a lack of confidence among senior oil and gas executives about how to define and execute their digital vision, and the scope of many businesses’ strategies is still too narrow.
“While outsourcing can be beneficial at the outset, ultimately, we believe the winners will build integrated, in-house capabilities that embrace the transformative potential of new technologies.
“In doing so, businesses must also be aware that the human factor remains crucial to digitization, and they need to address the organizational challenges that inevitably arise when adopting a more ambitious digital strategy.”