• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Why Wind is pitiful for most regions on earth
  • 52 mins Is OilPrice a cover for Green Propganda
  • 37 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 5 hours Sources confirm Trump to sign two new Executive orders.
  • 17 hours In a Nutshell...
  • 2 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 3 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 9 hours Coronavirus hype biggest political hoax in history
  • 2 days Apology Accepted!
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The Next Big Innovation In Oil & Gas: Cloud Computing

Oil and gas is hardly the first industry that springs to mind when one mentions cloud computing. The tech that has been expanding at a breakneck pace, disrupting business models and enabling innovation across industry boards, has not really met with a lot of enthusiasm in the energy industry—at least not yet. But this may be about to change.

The silver lining of the 2014 oil price collapse is making itself increasingly obvious: energy companies have had a wake-up call: They must change the way they play the game. Enhancing operational efficiency, keeping costs low, and approaching new projects more cautiously and flexibly are among the changes we have already witnessed.

Deeply rattled by the price crash, Big Oil – and small independent operators, too – is striving to turn into Lean Oil, going for smaller projects to maximize and accelerate investment returns and even venturing into renewables to ensure long-term growth.

Yet, the nature of the business, which involves so much sensitive information, is not particularly conducive to eagerness to adopt cloud services. But the cloud has been evolving and data security worries attributed to the cloud are being stifled. It seems that energy companies are becoming more comfortable with the cloud, and the near future might see it strap on this new tech.

A forecast from the UK-based Oil and Gas Council, for example, argues that the oil and gas industry stands to benefit particularly from cloud computing. Using a hybrid version of the technology that combines software as a service (public cloud) and software infrastructure as a service (private cloud) could not only bring IT costs down, but could also improve the way the business is managed.

According to the forecast’s author Chris Walcot, the cloud would provide oil and gas businesses with the powerful processing capabilities that they need, while facilitating the links between multiple offices across the world and enhancing the security of sensitive information by storing it in a virtual hub rather than on local servers—all at an appealingly low cost of entry.

Still, Walcot admits, the cloud has further to go before it makes these capabilities available to the oil and gas industry.

Other industry experts believe that cloud adoption will be one of the main IT trends for oil and gas this year, alongside the Internet of things, drones, intelligent rigs, and leak-detection software. The benefits of the cloud, they note, include realizing value from projects much more quickly, and developing new solutions that are flexible and quicker to deploy. Related: Oil Price Rebound May Come Too Late For UK Oil Sector

Speed is a core element of the cloud’s appeal, regardless of the industry. The technology eliminates much of the hassle associated with using an IT network, and invariably saves time, regardless of what you do on it. Of course, breakdowns are a possibility, but the very nature of the service ensures that this downtime– which providers will strive to make sure is a rare occurrence – is quickly addressed and damages minimized.

According to the experts cited above, the early adopters of cloud tech in the oil and gas industry will stand to benefit the most, just as the first entrants in the shale oil patch were the most successful.

On the supply side, we see a growing choice of cloud solutions specifically targeting the oil and gas industry, such as the DecisionSpace 365, developed by Halliburton’s Landmark together with Oracle Cloud, and the recent partnership between Germany’s software giant SAP and Accenture, aimed at developing cloud solutions for E&Ps.

In the world of oil and gas, cloud computing is trending, and it looks like a stable trend.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Oilracle on January 14 2017 said:
    -"The Next Big Innovation In Oil & Gas: Cloud Computing"-

    There is nothing big in "Cloud Computing," but only marketing noise.
    Oil industry is sensitive enough to keep everything in the house.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News