“North American Oil Companies Embrace Technological Innovations for Sustainability”

Updated On: January 8, 2025 11:25 am

Oil and Gas Firms Embrace Advanced Technology to Navigate Industry Changes

Companies prioritize asset management and AI solutions, according to ISG Provider Lens™ report

According to a recent report by Information Services Group (ISG) III, oil and gas companies in North America are increasingly relying on advanced technologies, particularly AI-powered analytics, to adapt to significant industry transformations.

The 2024 ISG Provider Lens™ Oil and Gas Services report indicates that digitalization is reshaping operations, driven by geopolitical shifts, evolving energy demands, and new environmental regulations. While these companies have been slow to embrace technological innovations in the past, they are now modernizing their operations amid rising security threats and the industry’s long-term shift away from fossil fuels.

“North America’s oil and gas industry is at a critical juncture,” stated Dale Hearn, ISG partner for Oil, Gas, and Chemicals. “Companies must invest strategically in decarbonization and adopt new technologies to enhance crude oil production in select regions.”

The report notes that businesses are increasing their investments in technologies to enhance efficiency and sustainability, motivated by both domestic and international regulations. These investments include tools designed to reduce emissions, minimize waste, and protect natural ecosystems. Enterprise asset management (EAM) platforms are crucial for this modernization, facilitating carbon monitoring across extensive production and delivery networks.

Digitalization is fundamentally changing operations in North American oil and gas sectors. Companies are integrating AI and machine learning (ML) to analyze large data sets, enabling them to recognize patterns and forecast trends. The emergence of generative AI is particularly noteworthy, offering transformative potential for security improvements, process optimization, and predictive maintenance.

Automation and robotics are also gaining traction in various oil and gas operations. Recent advancements, such as robotic drilling systems and autonomous vehicles for remote equipment inspections, promise to boost efficiency and safety while driving down costs.

ISG reports that many North American oil and gas companies are turning to cloud-based EAM systems to handle complex assets across multiple sites. They combine IoT sensors with AI-powered analytics to process asset data more rapidly, reducing the risk of unexpected downtime and prolonging asset life.

“Asset management is a key capability and a persistent challenge for the oil and gas sector,” remarked Jan Erik Aase, ISG partner and global leader of ISG Provider Lens Research. “As data volume about assets continues to rise, service providers are assisting companies in effectively managing and utilizing this information.”

The report also highlights other trends in North America’s oil and gas sector, including a surge in mergers and acquisitions and efforts to combat increasing cybersecurity threats.

For insights on challenges like skills shortages within aging workforces and inconsistency in IT/OT integration standards, refer to the ISG Provider Lens™ Focal Points briefing.

The 2024 ISG Provider Lens™ Oil and Gas Services report reviews 31 service providers across four categories: Enterprise Asset Management, Next-gen IT/OT Services, Data Management and Cloud Computing, and Energy Transition Services.

Accenture, Capgemini, Deloitte, HCLTech, IBM Consulting, Infosys, LTIMindtree, TCS, and Wipro have been recognized as Leaders in all four quadrants. Cognizant is noted as a Leader in three quadrants, while Birlasoft, LTTS, and Tech Mahindra are recognized as Leaders in two quadrants each. Hitachi Digital Services and PwC are acknowledged as Leaders in one quadrant each.

Additionally, Cyient, Hitachi Digital Services, Kyndryl, and Tech Mahindra are designated as Rising Stars for their promising portfolios and future potential, according to ISG.

Capgemini has been awarded the title of global ISG CX Star Performer for 2024 among oil and gas service providers, achieving the highest scores in customer satisfaction in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program.

The 2024 ISG Provider Lens™ Oil and Gas Services report is available for subscribers or can be purchased individually on the ISG website.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series offers a unique service provider evaluation that blends empirical, data-driven research with insights from ISG’s global advisory team. Enterprises benefit from comprehensive data and market analysis, aiding in the selection of suitable sourcing partners. ISG advisors use these reports to validate market knowledge and guide clients. The research currently covers providers globally, with future expansions planned. For more details on ISG Provider Lens research, visit the ISG website.

About ISG

ISG (Information Services Group) III is a prominent global technology research and advisory firm, partnering with over 900 clients, including more than 75 of the world’s top enterprises. ISG specializes in digital transformation services encompassing AI, cloud and data analytics, and sourcing advisory. Founded in 2006 and based in Stamford, Connecticut, ISG employs over 1,600 digital-ready professionals across 20 countries. For further information, visit www.isg-one.com.