In a report marking the launch of its latest research stream – Oil & Gas Technology – global analysts, Ovum, says that as IT continues to evolve at a lightning pace, the exploration & production (E&P) segment is struggling to keep up, “presenting an attractive market opportunity for IT providers, and a chance for forward-thinking oil and gas producers to leverage IT as a strategic differentiator.”
According to Warren Wilson, Ovum’s lead analyst for Energy & Sustainability, IData integration, warehousing solutions and application architectures common among other industries will be key investment areas for oil and gas producers, while IT vendors should look to adopt a tailored approach to offerings.
Wilson says, however, that the biggest obstacle for both parties – IT vendors and oil and gas producers - will be to bridge not only the technology but the cultural divide that exists between them.
“But, as IT vendors ramp up their efforts in upstream oil & gas, they will face a series of choices about whether to compete or cooperate with the many specialists already well entrenched in the oilfield, and each option entails a different set of opportunities and challenges.”
Wilson said Ovum's new Oil & Gas Technology research stream focused primarily on the upstream segment – E&P – “as that is where the profits, and IT opportunities, are concentrated.
“However, other areas that offer significant avenues for IT to improve business results are also included. Asset management, Big Data, business intelligence and analytics are key topic areas, as is energy management solutions for oil refining, petrochemicals, and other energy-intensive process manufacturing industries.
“We bring a unique set of capabilities to the table because our analysts are not only IT experts but also have solid understanding of the oil & gas business through both academic training in geology and direct work experience in the industry.”