Digital transformation is emerging as a driver of sweeping change in the world around us. Connectivity has shown the potential to empower millions of people, while providing businesses with unparalleled opportunities for value creation and capture.
Since the industrial revolution, the Oil & Gas industry has played a pivotal role in the economic transformation of the world, fuelling the need for heat, light and mobility of the world’s population. Today the Oil and Gas industry has the opportunity to redefine its boundaries through digitalization. After a period of falling crude prices and, frequent budget and schedule overruns, together with greater demands of climate change accountability and difficulties in attracting talent, the Oil & Gas industry can provide practical solutions. Digitalization can act as an enabler to tackle these challenges and provide value to all its stakeholders.
While digitalization could be a source of positive change, there are a number of challenges that need to be overcome to realize its full potential for both business and society. In some cases, the gains from digitalization have been inequitable with the benefits not reaching those who need it most. At the same time, the exponential increase in global information flows have created new risks around data privacy and security and businesses across sectors are grappling with challenges related to changing customer expectations, cultural transformation, outdated regulation, and skill shortages – to name a few.
Through the collaboration with the World Economic Forum, leaders gather to better understand the implications of these changes. The Digital Transformation of Industries (DTI) project, launched by the World Economic Forum in 2015, is an ongoing initiative that serves as the focal point for new opportunities and themes arising from latest developments and trends from the digitalization of business and society.
In 2015, DTI analysed the impact of digital transformation on 6 key industries – automotive, consumer industries, electricity, healthcare, logistics and media – as well 3 cross-industry topics focused on Digital Consumption, Digital Enterprise, and Societal Implications. In 2016, the initiative was extended to cover 7 additional industries, including oil and gas, and 2 new cross-industry themes – Platform Economy and Societal Value & Policy Imperatives. Through its broad focus, DTI has driven engagement on some of the most pressing topics facing industries and society today and provided business and policy leaders with an informed perspective to take action. This report does not only look into the challenges and opportunities digitalization creates for the Oil & Gas industry, but also how this potentially can be translated to societal value.
I would like to thank the Oil & Gas Community Steering Committee and the experts from industry partners, government and academia who were involved in shaping the insights and recommendations of this project. I am confident that the findings will contribute to improving the state of the world through digital transformation, both for business and society.
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