According to a new report from Lux Research, the oil companies of the future may resemble the tech companies of today. Moreover, if these companies fail to adapt to the changing digital landscape faced by all industries, they could be left behind.
In the new report, The Digital Transformation of Oil and Gas, Lux analysts make a strong case for oil and gas companies to embrace the global economy’s shift toward a more digital-friendly way of doing business.
“No industry is immune to the rapidly shifting digital landscape, including very traditional ones such as oil and gas,” says Harshit Sharma, analyst at Lux Research and the lead author of the report. “If the world’s major oil and gas producers don’t embrace these changes and implement systems and processes that will help them scale digitally, they very much risk failing to meet the needs of their global customers, and they will likely lose market share to their counterparts that do adapt.
Not unlike the continually evolving landscape of Silicon Valley, Lux predicts that these changes will be swift, and that leaders at the helm of oil and gas companies will have to move quickly and efficiently.”
“The companies that do this right and meet the challenges and opportunities posed by the digital age will have to be leaders in innovation,” says Sharma. “Like their peers in other industries that have undergone these changes, the leaders who continually push the envelope and force their operations to keep evolving will likely be most successful.”
For more information about how the digital age is reshaping and reinventing the historically traditional oil and gas industry, you can download the report’s executive summary here.