STOCK TITAN

Europe’s Oil and Gas Industry Turning to AI to Improve Operations Amid Energy Security Concerns

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
AI

Information Services Group (ISG) has published a new report highlighting how Europe's oil and gas industry is increasingly adopting AI technologies to optimize operations amid growing energy security concerns. Major companies like BP, Shell, and TotalEnergies are leveraging AI for exploration, production, refining, predictive maintenance, and supply chain management.

The report indicates that Europe's oil and gas demand is projected to decline by 25-50% in the next five years. The industry faces pressure to increase short-term production while preparing for a lower-carbon future, particularly due to supply disruptions related to the Ukraine conflict. Companies are turning to generative AI, machine learning, and digital twins to improve enterprise asset management and enhance cybersecurity.

The ISG Provider Lens™ report evaluated 33 providers across four quadrants, with Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS, and Wipro named as leaders in all four quadrants. Capgemini was recognized as the global ISG CX Star Performer for 2024.

L'Information Services Group (ISG) ha pubblicato un nuovo rapporto che evidenzia come l'industria del petrolio e del gas in Europa stia sempre più adottando tecnologie di intelligenza artificiale per ottimizzare le operazioni, in un contesto di crescente preoccupazione per la sicurezza energetica. Grandi aziende come BP, Shell e TotalEnergies stanno utilizzando l'IA per l'esplorazione, la produzione, la raffinazione, la manutenzione predittiva e la gestione della catena di approvvigionamento.

Il rapporto indica che la domanda di petrolio e gas in Europa è destinata a diminuire del 25-50% nei prossimi cinque anni. L'industria è sottoposta a pressioni per aumentare la produzione a breve termine pur preparandosi a un futuro a basse emissioni di carbonio, soprattutto a causa delle interruzioni di approvvigionamento legate al conflitto in Ucraina. Le aziende si stanno rivolgendo a IA generativa, apprendimento automatico e gemelli digitali per migliorare la gestione degli asset aziendali e potenziare la cybersecurity.

Il rapporto ISG Provider Lens™ ha valutato 33 fornitori in quattro quadranti, con Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS e Wipro riconosciuti come leader in tutti e quattro i quadranti. Capgemini è stata riconosciuta come il Global ISG CX Star Performer per il 2024.

Information Services Group (ISG) ha publicado un nuevo informe que destaca cómo la industria del petróleo y gas en Europa está adoptando cada vez más tecnologías de IA para optimizar las operaciones en medio de crecientes preocupaciones por la seguridad energética. Empresas importantes como BP, Shell y TotalEnergies están utilizando la IA para la exploración, producción, refinación, mantenimiento predictivo y gestión de la cadena de suministro.

El informe indica que se proyecta que la demanda de petróleo y gas en Europa disminuirá entre el 25% y el 50% en los próximos cinco años. La industria se enfrenta a la presión de aumentar la producción a corto plazo mientras se prepara para un futuro de bajo carbono, en particular debido a las interrupciones de suministro relacionadas con el conflicto de Ucrania. Las empresas están recurriendo a IA generativa, aprendizaje automático y gemelos digitales para mejorar la gestión de activos empresariales y aumentar la ciberseguridad.

El informe ISG Provider Lens™ evaluó a 33 proveedores en cuatro cuadrantes, con Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS y Wipro nombrados como líderes en los cuatro cuadrantes. Capgemini fue reconocida como el Global ISG CX Star Performer para 2024.

정보 서비스 그룹 (ISG)는 유럽의 석유 및 가스 산업이 에너지 안보 우려가 커짐에 따라 운영 최적화를 위해 AI 기술을 점점 더 채택하고 있다는 내용을 강조한 새로운 보고서를 발표했습니다. BP, Shell 및 TotalEnergies와 같은 주요 기업은 탐사, 생산, 정제, 예측 유지보수 및 공급망 관리에 AI를 활용하고 있습니다.

보고서는 유럽의 석유 및 가스 수요가 향후 5년 내에 25-50% 감소할 것으로 예상된다고 밝혔습니다. 이 산업은 낮은 탄소 미래에 대비하면서 단기 생산을 늘리라는 압박을 받고 있으며, 특히 우크라이나 분쟁과 관련된 공급 중단으로 인해 그렇습니다. 기업들은 생성적 AI, 기계 학습 및 디지털 트윈에 의존하여 기업 자산 관리 개선 및 사이버 보안 강화를 위해 노력하고 있습니다.

ISG Provider Lens™ 보고서는 네 가지 구역에서 33개 공급업체를 평가했으며, Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS 및 Wipro가 모든 네 구역에서 선두주자로 선정되었습니다. Capgemini는 2024년 글로벌 ISG CX 스타 performer로 인정받았습니다.

Information Services Group (ISG) a publié un nouveau rapport soulignant comment l'industrie pétrolière et gazière en Europe adopte de plus en plus des technologies d'IA afin d'optimiser les opérations face à des préoccupations croissantes concernant la sécurité énergétique. Des entreprises majeures comme BP, Shell et TotalEnergies utilisent l'IA pour l'exploration, la production, le raffinage, la maintenance prédictive et la gestion de la chaîne d'approvisionnement.

Le rapport indique que la demande de pétrole et de gaz en Europe devrait diminuer de 25 à 50 % au cours des cinq prochaines années. L'industrie subit des pressions pour augmenter la production à court terme tout en se préparant à un avenir à faible émission de carbone, notamment en raison des perturbations d'approvisionnement liées au conflit en Ukraine. Les entreprises se tournent vers l'IA générative, l'apprentissage automatique et les jumeaux numériques pour améliorer la gestion des actifs d'entreprise et renforcer la cybersécurité.

Le rapport ISG Provider Lens™ a évalué 33 fournisseurs dans quatre quadrants, avec Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS et Wipro reconnus comme leaders dans les quatre quadrants. Capgemini a été déclaré Global ISG CX Star Performer pour 2024.

Information Services Group (ISG) hat einen neuen Bericht veröffentlicht, der hervorhebt, wie die Öl- und Gasindustrie in Europa zunehmend KI-Technologien einführt, um die Betriebsabläufe angesichts wachsender Bedenken hinsichtlich der Energiesicherheit zu optimieren. Große Unternehmen wie BP, Shell und TotalEnergies setzen KI für Exploration, Produktion, Raffination, Predictive Maintenance und Lieferkettenmanagement ein.

Der Bericht weist darauf hin, dass die Nachfrage nach Öl und Gas in Europa in den nächsten fünf Jahren voraussichtlich um 25-50% zurückgehen wird. Die Branche steht unter Druck, die kurzfristige Produktion zu steigern, während sie sich auf eine kohlenstoffärmere Zukunft vorbereitet, insbesondere aufgrund von Versorgungsunterbrechungen im Zusammenhang mit dem Ukraine-Konflikt. Unternehmen setzen auf generative KI, maschinelles Lernen und digitale Zwillinge, um das Management von Unternehmensressourcen zu verbessern und die Cybersicherheit zu erhöhen.

Der ISG Provider Lens™-Bericht hat 33 Anbieter in vier Quadranten bewertet, wobei Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS und Wipro als führend in allen vier Quadranten genannt wurden. Capgemini wurde als Global ISG CX Star Performer für 2024 ausgezeichnet.

Positive
  • Major oil & gas companies actively implementing AI technologies for operational optimization
  • Industry leaders investing in digital transformation to improve efficiency and reduce costs
  • Strong provider ecosystem with multiple companies recognized as leaders across service quadrants
Negative
  • Projected 25-50% decline in European oil and gas demand over next 5 years
  • Industry facing significant supply chain disruptions due to geopolitical conflicts
  • Slower adoption of digital technologies compared to other sectors

Insights

The strategic shift towards AI adoption in Europe's oil and gas sector represents a pivotal transformation in operational efficiency and cost management. The projected 25-50% decline in oil and gas demand over the next five years is forcing major players like BP, Shell and TotalEnergies to accelerate their digital transformation initiatives. This adaptation is particularly important given the complex geopolitical landscape and energy security concerns stemming from the Ukraine conflict.

The implementation of generative AI, machine learning and digital twins in enterprise asset management signals a significant modernization effort in an traditionally conservative industry. This technological evolution is not merely about optimization - it's a survival strategy in response to mounting regulatory pressures and the EU's aggressive net-zero emissions targets.

The industry's digital transformation strategy focuses on three critical technological pillars:

  • Enterprise Asset Management (EAM) optimization through AI and ML
  • Enhanced cybersecurity measures in response to the European Commission Cyber Resilience Act
  • Cloud-based infrastructure modernization

The competitive landscape shows clear market leaders, with companies like Accenture, Capgemini, Deloitte and IBM Consulting dominating across multiple service quadrants. Capgemini's recognition as the global ISG CX Star Performer indicates strong execution in customer experience transformation, a important differentiator in this evolving market.

The timing of this technological transformation is strategically significant. With North Sea exploration gaining renewed importance and the simultaneous pressure to transition to renewable energy sources, AI-driven efficiencies become important for balancing short-term energy security needs with long-term sustainability goals. The industry's dual challenge of increasing immediate production while preparing for a lower-carbon future creates a unique window of opportunity for technology service providers. This evolution will likely trigger a wave of infrastructure modernization projects, particularly in predictive maintenance and supply chain optimization, potentially leading to significant market opportunities for both technology providers and energy companies.

At what could be a critical turning point for Europe’s energy producers, technology advancements enable new process efficiencies, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Europe’s oil and gas industry is increasingly leveraging AI to optimize operations across its value chain as the region faces growing energy security concerns, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Oil and Gas Industry – Services and Solutions report for Europe finds AI is being used by major companies such as BP, Shell and TotalEnergies to enhance operational efficiency in exploration, production, refining, predictive maintenance and supply chain management.

The sector’s growing use of technology to improve operations comes at a pivotal moment for Europe’s oil and gas industry. Offshore production is gaining increased attention amid energy security concerns caused by the war in Ukraine, with the North Sea a focal point for exploration and production. At the same time, the European Union must be prepared to assist member states in moving away from fossil fuels, to avoid destabilizing the region. Europe’s oil and gas demand is projected to decline by 25 percent to 50 percent in the next five years, the report notes.

“Europe’s upstream oil and gas industry is at a turning point,” said Julien Escribe, partner and managing director, ISG SEMEA. “The industry must increase production in the short term to combat supply challenges while at the same time prepare for a lower-carbon future. Technology is playing an increasingly important role in the transition.”

Supply chain disruptions, particularly related to Russia’s ongoing conflict with neighboring Ukraine, are pressuring Europe’s oil and gas producers to adopt stronger measures for managing their assets, complying with stricter country and EU regulations and controlling costs. Producers are meeting these challenges by turning to technologies such as generative AI (GenAI), machine learning (ML) and digital twins to improve their existing enterprise asset management (EAM) processes as well as enhance their cybersecurity.

Being asset-intensive, the oil and gas industry has been slower than most at adopting digital technologies. However, with petroleum and natural gas prices likely to increase while demand decreases, amid the European Union’s continued push for net-zero emissions, producers are forced to find ways to improve efficiency while reducing costs.

“Geopolitics, geology and ecology are conspiring to shift the world’s energy trade patterns,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The providers that emerge as leaders in the oil and gas sector will be the ones that guide producers through the maze of new, and sometimes conflicting, energy regulations; help them shift their capital allocations to invest in greener, more sustainable processes, and improve the security of their supply chains.”

The report also explores other trends, including increasing cyber security threats to the EU’s critical infrastructure. Providers in the oil and gas space are reacting to the new European Commission Cyber Resilience Act by bolstering their cybersecurity services, particularly related to their use of cloud-based storage, data and infrastructure.

For more insights into the challenges faced by Europe’s oil and gas providers, and how software providers help address those challenges, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Oil and Gas Industry – Services and Solutions report for Europe evaluates the capabilities of 33 providers across four quadrants: Enterprise Asset Management, Next-Gen IT/OT Services, Data Management and Cloud Computing, and Energy Transition Services.

The report names Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS and Wipro as leaders in four quadrants each. Cognizant is named a leader in three quadrants. EY, Hitachi Digital Services and LTIMindtree are named leaders in two quadrants each. LTTS and PwC are named leaders in one quadrant each.

In addition, Cyient, LTIMindtree, LTTS and Publicis Sapient are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2024 among oil and gas industry services and solutions providers. Capgemini earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Oil and Gas Industry – Services and Solutions report for Europe is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the UK, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

What is the projected decline in Europe's oil and gas demand according to ISG (III)?

According to the ISG report, Europe's oil and gas demand is projected to decline by 25 to 50 percent in the next five years.

How are European oil and gas companies using AI to improve operations?

Companies are using AI for enhancing operational efficiency in exploration, production, refining, predictive maintenance, and supply chain management.

Which companies were named leaders in ISG's (III) 2024 Oil and Gas Industry report?

Accenture, Capgemini, Deloitte, IBM Consulting, Infosys, TCS, and Wipro were named leaders in all four quadrants of the report.

What technologies are European oil and gas companies adopting for asset management?

Companies are adopting generative AI (GenAI), machine learning (ML), and digital twins to improve enterprise asset management processes and cybersecurity.

Which company was named ISG's (III) global CX Star Performer for 2024 in oil and gas services?

Capgemini was named the global ISG CX Star Performer for 2024 among oil and gas industry services and solutions providers.

Information Services Group, Inc.

NASDAQ:III

III Rankings

III Latest News

III Stock Data

153.60M
34.92M
28.83%
60.88%
0.34%
Information Technology Services
Services-management Consulting Services
Link
United States of America
STAMFORD