Sustainability remains a hot topic today in the oil and gas industry, as there is a major push to move from fossil fuels and toward a net-zero carbon goal. Experts predict this industry will undergo a major transformation in the coming years. In fact, many companies specializing in oil and gas now consider themselves energy or mobility companies, as they anticipate what the future holds. In addition, they are proceeding with digitalization, recognizing the benefits of doing so.
Challenges Seen in the Oil and Gas Industry
The oil and gas industry faces new challenges every day. For instance, the industry cannot control external factors, such as government regulations. Price volatility remains a concern in this sector, as do global operational costs. In addition, the company also deals with internal factors. They must manage several business lines, track assets, and manage contracts, among other things. Technology can help overcome these obstacles along with some tips from TEC.
Industry Diversification
When people think of oil and gas, their minds rarely go to renewable energy, electrical charging stations, and things of that nature. However, this industry is diversifying and moving beyond conventional revenue streams. For instance, Shell now serves as the world’s largest mobility retailer.
Government Regulations
Governments around the globe continue to push aggressive carbon-neutral targets. In addition, they frequently offer rebates and incentives to encourage people to move away from fossil fuels. However, will people continue to move to carbon-neutral energy options once the rebates and incentives end? The oil and gas industry must prepare for this possibility.
Customer Expectations
Consumers and investors alike want to work with sustainable companies. In addition, some organizations today say they won’t work with any company that doesn’t make use of sustainable practices. Companies must note this, and employees often make sure they do. A company that wants to attract top talent may find it difficult to do so if they don’t make sustainability a top priority.
Overcoming These Challenges
To overcome these challenges, every organization in this field relies on critical business applications. In fact, Enterprise Resource Planning plays a major role in overseeing tight industry processes. With the help of ERP, companies find they reduce costs while meeting the needs of customers. They also avoid capital and equipment conflicts.
Enterprise resource planning allows the company to adapt to changing factors and address market pressures. With the help of the program, the company avoids assignment conflict and ensures resources are best used for every project. The program may also track maintenance time and ensure the worker allocates labor and costs properly.
As this program is available for workers out in the field, companies find it easier for every employee to input data and manage workflows. Each employee can ensure supply chain data is captured in real-time, which helps to reduce the risk of equipment conflicts. With the help of enterprise resource planning, companies find they can use their assets and equipment in an energy-efficient manner while meeting the expectations of employees, consumers, and investors.
The oil and gas industry must prepare to transform as more countries make the move to green energy and sustainability. Every company needs a long-term strategy to implement foundational change, and data becomes of great help in implementing sustainable practices at every level. However, companies must take this a step further and use transport and delivery methods that will reduce the number of miles traveled to reduce emissions and the company’s carbon footprint. With the help of ERP, doing all the above becomes easier.
