Oil continues to be one of the most valuable, in-demand resources in the world. There are many industries rely upon the state of the oil/gas sectors in order to operate. It is important for those industries to keep track of trends and current events that may influence oil in a positive or negative way. Here are some of the current discussion topics set to bring about change in the future.
Blockchain
The future of oil is expected to change once blockchain is incorporated.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” according to Don & Alex Tapscott, authors of Blockchain Revolution.
Because oil has value, Blockchain is considered essential in increasing efficiency in energy generation and distribution. It also creates the potential to improve fundraising efforts with the use of initial coin offerings.
Here to Stay
Although the current conditions are challenging, experts agree that both oil and gas are here to stay long-term and will continue to be profitable. Although steps have been taken towards renewable energy, it will take an exponentially longer amount of time for the technology to filter down and reach ubiquitous use. Expect for the industry to become more collaborative, with multiple industry backers and new platforms.
Smarter Technology in the Oil Fields
The technology that is used in the oil fields is already in the process of becoming more advanced and innovative, with advancements that allow oil to be extracted from the ground at a much faster rate. Additional considerations are being made to improve the safety of employees in the oil industry. The new equipment will allow workers to make decisions quickly and more efficiently.
Aging Rigs
One of the most common challenges facing the oil industry is the maturation of rigs. As with any equipment, the older they get the more likely they are to experience stress and break down. Decommissioning the rigs can add up to billions of dollars to industry expenses in future decades. Approximately 600 rigs need to be decommissioned by 2021, but sinking the rigs is not an option. Oil companies will need to create a plan of action to remove the rigs in a manner that protects the surrounding environment from harm. Both engineers and geoscientists will be used to find solutions using the latest research and information provided by industry experts.
Digital Transformation
A future digital transformation of offshore practices will improve the functional capabilities of companies with new software environments that are also integrated. Operational efficiency will also be a goal for many companies, as digital transformation will help to improve operations while helping to keep costs low.