Observational analysis shows Digitalization enhances operational efficiency in the oil and gas industry, indicating systems can reduce CO₂ emissions.
Operational Excellence (OE) in the oil and gas industry is founded on safety, reliability, efficiency, workforce competency, and continuous improvement, all while maintaining cost optimization (Muazu & Tasmin 2017). Digitalization is a key enabler of OE, with studies indicating it can unlock $1.6 trillion in industry value (Padmanabhan et al. 2023), reduce CO₂ emissions by up to 20% (Shinkevich et al. 2020), prevent potential incidents, lower maintenance costs by 25% (Bradbury et al. 2018), and enhance operational efficiency by 30% (Wanasinghe et al. 2021). Despite these benefits, only 13% of oil and gas companies fully leverage data analytics, primarily due to weak digital transformation strategies that lack a comprehensive, integrated perspective (Prestidge 2022). This paper presents a structured digital transformation framework that ensures seamless data, process, people, and technology (PPT) integration, mirroring the success of Statoil’s Integrated Operations (IO) (Lima et al. 2015). Our phased, agile approach delivers quantifiable benefits at each stage, setting the foundation for advanced digital adoption and intelligent automation while maximizing ROI and paving the way for robust Operational Excellence.
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Mohamed Rotan (2025) studied this question.
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