Digitalization Technology Are Driving the Energy Transition

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The energy sector is going through a massive transformation as digital technology drives the energy transition. This is creating opportunities and challenges as early adopters frame how the industry can do its part to fight climate change.

From Forbes

“Digitization is probably the single best thing you can do for the environment,” said Vincent Higgins, president of oil and gas digitization at mCloud.

ESG (environmental, social, and governance) started as a “nice to have” but is now an imperative to energy companies, facing pressure from consumers, advocates, and stakeholders. This shift has coincided with fast-paced advances in digital technology that helps energy companies improve efficiency in a whole host of ways. 

“Efficiency has a direct correlation with emissions,” said Attilio Pisoni, head of strategy and technology at Baker Hughes Oilfield Services.

Examples of technology being used in the field to improve efficiency—and therefore reduce emissions—include:

  • Drone and ground-based methane monitoring

  • Advanced automated vehicle idling alongside other fleet fuel reduction strategies

  • A shift to electric trucks, vehicles, and even in-the-field pumps

  • Data modeling and artificial intelligence (AI) for automation

  • Production facility digital twins for in-field monitoring from the office

  • Monitoring sensors to collect data and big data strategies to analyze and optimize 

“When you look at the development of our technologies—either internal development or those technologies we brought in externally—they are all geared around reducing our carbon footprint,” said Wayne Richards, president and CEO of GR Energy Services.

In addition to ESG initiatives, climate tech is a focus for investors (including O&G venture arms) in riding out the potential upcoming recession. More money than ever—by a big margin—is flowing into climate tech, funding R&D and scaling efforts for startups with promising green tech. 

Both the private and public sectors are throwing money into emerging tech that helps reduce and remove greenhouse gasses, from software and sensors to renewable energy sources and CCUS. 

Turns out, money and investor desires behind stopping climate change are leading energy companies further into their digital transformations. 

Can’t have one without the other.