How does cloud computing benefit the oil & gas industry?
This is the first post in a two-part series that will delve into how oil & gas companies can benefit from cloud infrastructure and why CloudSigma is the right cloud partner for the oil & gas industry.
The first part of the series takes a look into the specifics of the oil & gas industry. Next, we take a deep dive into the main infrastructure challenges for the petroleum sector. Then, we examine the most important features that make a cloud-based infrastructure perfect for overcoming all of those challenges.
The oil & gas industry
In today’s world, technology is moving at a fast pace, changing the way industries develop and operate. One of the key technologies paving the way for the next phase of the digital revolution is cloud computing. Enterprise workloads are expanding each year. This makes the demand for cloud computing services continue to increase exponentially. In fact, worldwide public cloud services spending will reach $210 Billion in 2019. Surely, cloud technology is key to helping specific industry verticals in pushing into successful digital integration.
The oil & gas industry is among the industries that are still behind other industries when it comes to being digitally enabled. At the same time, there is no doubt that the sector can benefit tremendously from the technological advancements made available by cloud computing.
Oil & gas operations involve the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. Such intensive fieldwork requires the sharing of large amounts of data from field instrumentation, contractors, regulators, and other stakeholders in real-time. More than that, operating in a speedy and secure manner is of extreme importance as the oil & gas industry operates at a large scale.
As technology is becoming more pervasive and complex, and external forces continue to put pressure on revenues and costs, upstream oil & gas companies cannot afford to operate within a traditional and conventional mindset.
Main infrastructure challenges for oil & gas
In turn, the industry is losing out on the numerous opportunities provided by cloud infrastructure. Those include sophisticated analytics, artificial intelligence, advanced data storage, and faster processing. Undoubtedly, the companies that want to stand out from the competition should change this trend and migrate to the cloud.
Adopting a cloud-based infrastructure would allow oil & gas companies to overcome several challenges resulting from not fully embracing digitalization. First, lower-to-no latency is extremely important for the successful functioning of any oil & gas company. The petroleum industry needs to share data from field instrumentation, contractors, regulators, and other stakeholders in almost real-time which makes the right latency threshold crucial. Next, oil & gas companies require a very scalable infrastructure. There is a lot of big data analytics in the proper operation of a petroleum business. Thus, it requires data storage to be able to scale up and down rapidly in response to changing project needs. Another challenge, faced by oil & gas businesses with an on-premise infrastructure is the high cost of constantly upgrading both their hardware and IT teams. Other issues relevant for the industry include security and privacy, and flexibility.
What can the cloud offer?
Cloud computing can transform the operational procedures within the energy sector. However, oil & gas companies that are willing to take the leap forward need to be sure that they are choosing the right cloud partner. The most effective cloud solution must be tailored specifically to the needs of energy providers.
For that reason, we have compiled a list of the most important features that make a cloud-based infrastructure perfect for overcoming the challenges on-premise infrastructure poses for the oil & gas industry. In Part 2 of the series, we elaborate on those features placing them in the context of the cloud services provided by V2 Public Cloud, powered by CloudSigma and HPE оut of Riyadh, the Kingdom of Saudi Arabia. We explain in detail what makes our platform the right partner for any oil & gas business that wants to stand out from the competition.
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