North American Oil Firms Tackle Change with Technology

Rhea-AI Summary

Information Services Group (ISG) has released its 2024 ISG Provider Lens™ Oil and Gas Services report, highlighting how North American oil and gas companies are adopting advanced technologies to address industry challenges. The report reveals that companies are investing in AI-powered analytics, enterprise asset management (EAM), and digitalization initiatives to improve operations and sustainability.

Companies are implementing these technologies to tackle multiple challenges, including security threats, environmental regulations, and the transition away from fossil fuels. Key technological advances include the use of generative AI for security and maintenance, robotics for drilling operations, and cloud-based EAM systems integrated with IoT sensors for asset management.

The report evaluates 31 providers across four quadrants, naming several companies as Leaders, including Accenture, Capgemini, Deloitte, HCLTech, IBM Consulting, Infosys, LTIMindtree, TCS, and Wipro. Capgemini was recognized as the global ISG CX Star Performer for 2024 in oil and gas services.

Positive

• Industry-wide adoption of advanced technologies including AI and ML for operational improvement
• Implementation of cloud-based EAM systems for better asset management
• Strategic investments in decarbonization technologies
• Integration of IoT sensors with AI-driven analytics to reduce downtime

Negative

• Industry facing mounting security threats
• Challenges with aging workforce and skills shortages
• Lack of standardization in IT/OT integration

Insights

Market Research Analyst

North American oil and gas companies are undergoing a significant digital transformation, with immediate implications for ISG (III) as a key advisory firm in this space. The report reveals substantial market opportunities in enterprise asset management, AI analytics and energy transition services - all areas where ISG provides critical consulting services.

The timing of this report is particularly strategic as it coincides with major industry shifts: $500B+ in recent oil & gas M&A activity, escalating cybersecurity concerns and intensifying regulatory pressures around emissions. ISG's positioning as a trusted advisor in this transformation presents significant revenue potential, especially as companies seek guidance on generative AI implementation and cloud-based EAM systems.

The competitive landscape analysis, featuring 31 service providers, strengthens ISG's market intelligence capabilities and enhances its value proposition to clients navigating vendor selection. This positions ISG favorably for increased consulting engagements in 2025 as oil & gas firms accelerate their digital initiatives.

Technology Analyst

The report's findings indicate a major technological inflection point in the oil & gas sector that directly benefits ISG's advisory business. Key technological trends highlighted - including AI-powered analytics, cloud-based EAM systems and IT/OT integration - represent high-margin consulting opportunities in ISG's core service offerings.

The emergence of generative AI applications in security and process optimization is particularly noteworthy, as it opens new revenue streams for ISG's advisory services. The integration of IoT sensors with AI analytics for asset management aligns perfectly with ISG's expertise in digital transformation consulting.

The industry's technological modernization needs, coupled with challenges in workforce skills gaps and standardization, create sustained demand for ISG's advisory services. This positions III for potential revenue growth as companies seek expertise in implementing and optimizing these new technologies.

Facing disruptions and energy transitions, companies modernize operations with asset management, AI-powered analytics, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Oil and gas enterprises in North America are embracing advanced technologies, including AI-powered analytics, as they adapt to major industry changes, 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 Services report for North America finds digitalization is revolutionizing operations while geopolitical events, shifting energy demands and changing environmental regulations reshape markets and business requirements. Oil and gas companies have been reluctant to adopt new technologies but are now modernizing in response to mounting challenges, especially from rising security threats and the long-term transition away from fossil fuels.

“North America’s oil and gas industry is at a critical juncture,” said Dale Hearn, ISG partner, Oil, Gas and Chemicals. “Companies need to make strategic investments in decarbonization while also implementing new technologies to increase crude oil production in some areas.”

Partly in response to domestic and international regulations, enterprises are increasing investments in technologies to make traditional oil and gas operations more efficient and sustainable, the report says. Their efforts include developing tools to reduce emissions, minimize waste and protect ecosystems. Enterprise asset management (EAM) platforms play a key role, enabling applications such as carbon monitoring across widely dispersed production and delivery systems.

Digitalization is revolutionizing North American oil and gas operations, opening doors to better decision-making, safety and operational efficiency, ISG says. Increasingly, companies are using AI and ML to analyze vast amounts of data to identify patterns and predict trends. Generative AI is now emerging as a transformative tool in the industry, with potential applications including improved security, process optimization and predictive maintenance.

The combination of automation and robotics is also gaining traction in many areas of oil and gas operations, the report says. Advances in technologies such as robotic drilling systems and autonomous vehicles and drones for remote equipment inspections promise to enhance safety and efficiency while reducing costs.

Many oil and gas companies in North America are implementing cloud-based EAM systems to manage complex assets across multiple locations, ISG says. They are integrating IoT sensors with AI-driven analytics to process data about assets more quickly, reducing unplanned downtime and extending the useful life of assets.

“Asset management is both a critical capability and an ever-present challenge for the oil and gas industry,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “As the volume of data about assets grows, service providers are helping enterprises manage and use it.”

The report also explores other trends in the North American oil and gas industry, including a wave of mergers and acquisitions and efforts to defend against escalating cybersecurity breaches.

For more insights into the challenges faced by oil and gas companies in North America, including skills shortages in aging workforces and a lack of standards for IT/OT integration, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Oil and Gas Services report for North America evaluates the capabilities of 31 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, HCLTech, IBM Consulting, Infosys, LTIMindtree, TCS and Wipro as Leaders in all four quadrants. It names Cognizant as a Leader in three quadrants and Birlasoft, LTTS and Tech Mahindra as Leaders in two quadrants each. Hitachi Digital Services and PwC are named as Leaders in one quadrant each.

In addition, Cyient, Hitachi Digital Services, Kyndryl and Tech Mahindra 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 services 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 Services report for North America 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 U.K., 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250108921622/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What technological investments are North American oil companies making according to ISG (III)?

According to ISG's report, North American oil companies are investing in AI-powered analytics, enterprise asset management platforms, cloud-based systems, and digitalization initiatives to improve operations and sustainability.

How is generative AI being used in the North American oil and gas industry?

Generative AI is emerging as a transformative tool in the industry, being applied to improve security, process optimization, and predictive maintenance operations.

Which companies were named Leaders in ISG's 2024 Oil and Gas Services report?

The report named Accenture, Capgemini, Deloitte, HCLTech, IBM Consulting, Infosys, LTIMindtree, TCS, and Wipro as Leaders across all four quadrants.

What are the main challenges facing North American oil and gas companies in 2024?

The main challenges include rising security threats, the transition away from fossil fuels, changing environmental regulations, skills shortages in aging workforces, and lack of standards for IT/OT integration.

How are oil companies using Enterprise Asset Management (EAM) systems?

Companies are implementing cloud-based EAM systems integrated with IoT sensors to manage complex assets across multiple locations, process data more quickly, reduce unplanned downtime, and extend asset life.