Despite the rapid speed of technology and innovation pressuring the industry, oil and gas CEOs see technological disruption as more of an opportunity.
Despite the rapid speed of technology and innovation pressuring the industry, oil and gas CEOs see technological disruption as more of an opportunity than a threat but acknowledge that more work is to be done.
“Technology is disrupting the status quo in the oil and gas industry. AI and robotic solutions can help us create models that will predict behavior or outcomes more accurately, like improving rig safety, dispatching crews faster, and identifying systems failures even before they arise. This level of predictability can have a profound impact on our industry, said Regina Mayor, Global Sector Head, Energy and Natural Resources, KPMG in the US.
As part of their growth strategies, 83 percent of O&G CEOs anticipate a moderate to high appetite for M&A activity over the next three years, largely driven by the need to reduce costs through synergies/economies of scale; a speedy transformation of business models; increased market share; and low interest rates.
“The higher price of oil is playing a significant role in driving a more positive sentiment across the industry,” said Anton Oussov, Global Oil and Gas Leader, KPMG in Russia. “Executives are really honing in on ways they can improve internal efficiencies through strategic M&A moves and the use of robotics, AI and other means of digitalization across the industry.”
Despite a rosy outlook, there are still concerns and threats to achieving growth. Among the biggest threats to, 23 percent of CEOs point to emerging/disruptive technology risk, 20 percent say environmental and climate change risks, and 18 percent point to a return to territorialism are most concerning.