In August of 2020, the oil and gas industry hit the bottom of the barrel regarding production and rig counts. Over a year later, U.S. oil and gas rig counts rose from six to 635, spurring a rise in production, worker count, and, most importantly, the need for continued digital transformation in the form of field service technology. While oil & gas hasn’t recouped as fast as expected, pent-up demand is only growing. With where consumption is now and where drilling activity could be, jobs and rig counts will only increase in 2022.
Before demand boils over – the time is now to start and implement a digital transformation project. In 2022, Oil and gas businesses should feel confident that investing in digital transformation will see a return on investment (ROI), continued cash flow, and the elimination of inefficiencies.
The first step to digital transformation is investing in the tools and solutions needed to support companies and workers in the field. Field service technology solutions help process tickets and forms more efficiently and seamlessly, dodging bottlenecks in the quote-to-cash process. Once collected, the data is used to create a proactive workflow that allows for routine preventative and predictive maintenance, increased equipment reliability, and efficient regulatory compliance. On top of that, by digitizing and automating the billing process, human error and billing delays caused by lost revenue errors and incorrect pricing are removed from the equation. Adopting digital also allows for accurate data collection, giving oil and gas companies visibility into current and historical data, which is sure to increase efficiency and profitability. This actionable data provides companies with the insight they need to grow and thrive.
Participating in digital transformation also enables maintenance managers to monitor equipment conditions more efficiently and verify user qualifications, thereby reducing safety risks while protecting assets and the operators utilizing them. With equipment records digitally transformed into a visual, user-friendly format, quality assurance managers and field service teams can use the data to ensure worksite safety conditions meet safety and regulatory compliance standards.
The future is digital, although the oil and gas industry has a reputation of reluctance when it comes to change. Until recently, it has relied on antiquated thinking and manual processes to drive business operations. Out of necessity, many companies are transitioning to new solutions to replace legacy systems and stay ahead of quickly growing demand coming out of the pandemic slump. Implementing change within your workforce is a very delicate process, which means these digital transitions and technology shifts must start at the top. To change the mindset of a workforce, top executives need to build trust between themselves and their employees and have complete knowledge of digital capabilities.