How Oil and Gas Companies Can Prepare for Upcoming Changes

The energy sector has long been the last one to adopt any significant change in the industry. When the internet was first introduced into the market, oil and gas companies took some time before relying themselves on this technology. Similarly, when wireless sensors were being implemented in air ventilation and conditioning systems, policymakers in the energy sectors were thinking about how they will embrace this change. The industry is now facing a new challenge of preparing themselves for low CO2 emission regulations.

Europe, which is home to some of the largest upstream and downstream fuel providers, recently hosted a global conference regarding CO2 emissions by energy producers. The sector has a once in a lifetime opportunity to prove the world that they can contribute to making it a better place to live in. Lawmakers have suggested that CO2 emissions from the whole energy sector should not exceed a certain threshold to maintain two-degree Celsius global warming levels.

How Are Oil and Gas Companies Preparing Themselves for the Future?

Automation

Many oil and gas companies are automating their upstream and downstream processes to reduce costs and lower the emission of CO2 in the environment. By using advanced technology, the industry is reducing the chances of error during oil and gas exploration and distribution process. This has also allowed organizations in the oil and gas sector to maximize the scarce oil and gas resources available in the world.

Digitization

The energy sector is quickly adopting digital sensors in the industry which has allowed them to monitor remote assets through wireless connections. The technology has become so advanced that engineers can create a virtual image of their machinery that is situated at one of the most remote locations in the world. These locations could include ocean beds or the arctic ice caps. Remote sensors send constant signals to the head office which helps engineers to pinpoint the exact location that is wearing out and can result in leakage of fuel.

Decentralization

This is an excellent way for organizations to manage risk and efficiently utilize the available resources. A decentralized structure suggests a large oil and gas conglomerate is divided into different subsidiaries. Each entity acts as a separate corporate and can operate on various sites around the world. Each of these sub-organizations can manage their CO2 emissions most effectively. It not only allows them to meet global warming regulations but also helps in deploying technology most optimally.

Managing activities through partnerships

Oil and gas companies are focusing on developing strong relationships with their business partners to reduce costs and CO2 emissions. These strategic alliances allow energy companies to gain expert resources from the industry leaders in each sub-sector of the oil and gas industry.

To make their mark in the 21st century, upstream and downstream oil and gas providers will need to be quick on adapting to new technologies. This will help in optimizing their organizational resources and reducing CO2 emissions in the surrounding environment