Ovum closes the gap between IT innovation and the upstream oil & gas industry
(PresseBox) (London, )The time is right for the oil & gas industry to invest in information technology, says Ovum. 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.
In a new report*, which marks the launch of Ovum's latest research stream - Oil & Gas Technology - the global analysts outline how innovative IT can help E&P companies improve efficiency, safety, production, and overall competitiveness. Data 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. However, the biggest obstacle for both parties will be to bridge not only the technology but the cultural divide that exists between them.
"The priority for the two industries will be to develop common standards and languages that foster closer communication, data integration, and the adoption of common processes across the technology and cultural divide," says Warren Wilson, Ovum's lead analyst for Energy & Sustainability IT. "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."
Ovum's Oil & Gas Technology research stream focuses 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. Research and analysis in this stream will include a mix of decision matrix reports, strategic analyses, briefs, forecasts, and surveys, as well as shorter pieces such as "On the Radar" reports about notable new companies.
"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. We think our unique capabilities will result in research and analysis that is of high value to IT solution providers, oil and gas producers, and the many specialists that serve this industry," concludes Wilson.