Digitalisation in the oil and gas industry could unlock between $1.6 trillion and $2.6 trillion in new value by 2025, DHL predicts in a new whitepaper. This assessment is based on industry players leveraging technology to improve margins, safety standards, as well as reduce emissions and water consumption.
The report gives the example of drones and autonomous robots which can potentially reduce drilling and completion costs by 20 per cent in deep-water areas and 25 per cent in inspection and maintenance of assets.
The report comes as the oil and gas industry grapples with the effects of Covid-19. According to DHL, global oil demand will not reach pre-Covid levels before the end of 2021 owing to pandemic-induced slowdowns in travel.
The DHL whitepaper notes that increased investment in downstream projects will generate more value per barrel of oil through the production of value-added specialty chemicals and plastics.
Over half of the global oil demand growth by 2025 is expected to come from the petrochemical industry – and this is evident in the region where national oil companies are already partnering with key players across key demand markets; for instance Saudi Aramco’s non-binding deal for 20 per cent stake in Reliance’s crude oil-to-chemical (COTC) operations.
The whitepaper also highlights an accelerated transition towards a green economy. In 2019, 72 per cent of all new electricity generation globally came from renewable energy sources, and the industry expects that nearly half (45 per cent) of the global energy demand growth until 2030 would be sourced from renewable energy.
“The energy sector is grappling with multiple challenges due to the pandemic but it is not all doom and gloom, however,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa.
“Whilst it is more critical than ever to ensure the smooth completion of projects, it is equally pertinent that energy companies leverage technology to offer smarter, simplified and greener solutions.”
Credit: Gulf Business