Upstream 4.0: Challenges And Solutions


Upstream 4.0: Challenges And Solutions

“Digitalization in oil and gas” or “ 4th industrial revolution introduced in oil and gas” is echoing in recent years a lot. Since many of you read or heard about digitization or digitalization or digital transformation, these sound akin if you are a first time reader. These all are different things, you can say these are the ways of implementing automation in the upstream sector.



Since we know that a lot of data is collected in hardcopy and handwritten forms like the logs and the safety cards filled by the workers onsite. Conversion of this kind of data into digital is what we called digitization.

Whereas digitalization means how efficiently we can use the data converted to digital means constructing the new business models via innovative solutions.

Last is the digital transformation which means to collaborate or integrate the data and models prepared from above-given processes via making a new system and transforming the very basic structure of the organization.

Changes are always laborious in the industries and a complex industry like upstream it becomes more arduous. Digital innovation will transform the business from its DNA, initially it seems to be a disruption for the agile upstream sector and it’s massive $3.4 trillion infrastructure can’t be used for experimenting, so the companies need to be sure without a shadow of doubt.

The Upstream sector is not just a single sector it is a nexus of different sectors for construction operations, outsourcing for different tasks with the different service companies and different engineering departments that all are interdependent and give rise to issues for common solutions. But companies can automate their complex operation structure by making a pragmatic digital plan by using the software used to make the flow process automated like for E- Permit To Work designed by Oges to minimise the ruckus on the field between different units.

Next thriving challenge is the lack of skill of the ageing oil and gas workforce related to the new technologies like AI, ML and IoT. And their resistance towards the change due to the fears that it can cost them their job that's why these innovative plans took time to clear for the management. People now should have to know about the new technologies and skills coming in the market, because it is important to pace up with it.

Acceptance to digital transformation properly not fulfilled by the companies since it is important to accept it solely for the total transformation and improved cash flow and efficiency. According to the survey conducted by BCG, the financial performance of the companies accepted it as a culture are 5 times greater than those that neglected it.

Challenges are intransigent in the upstream sector but achievable with the collaborative work of the different departments and pragmatic digital roadmap and adjust the business models according to it and focus on it solely.

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