Innovations in Oil and Gas

Feb 23, 2021 | blog

This episode.

Today, I’d like to talk about the oil and gas industry. When you think about innovation, it’s really hard to exclude oil and gas has been at the very top of your list. And the reason for that is the oil and gas industry has made unprecedented levels of investment in trying to identify new alternative sources of energy. And they’ve had a great deal of successes in that regard. But there are many complex factors that are changing the oil and gas industry, one of which is hyper consumerization, and consumer demand of new alternative energy sources. We also see major changes in the way in which consumers are using energy. And as a result of that, they are in a state of massive massive disruption. So the future of oil and gas is basically the subject of the C 19. Economy. There are three big shifts, and these big shifts will impact oil and gas. And I guess the key word here is innovation. Because in a time of differentness, the oil and gas industry simply cannot double down on sameness. They have to move away from some of their legacy ideas about oil and gas. Although I must say that most of the organizations with in oil and gas are in fact disruptive innovators, and they have put an inordinate amount of time and effort and resources into innovating the changes that are occurring around them. So here are the three big shifts that will affect oil and gas. Number one, hyper consumerization we realized that most organizations in oil and gas see their business customer as their primary customer often. But there is an end user, and that end user needs to be connected to a product in a way that delivers higher degrees of value and in a way that enjoys friction freedom. Understanding customers better in a time of massive change will be critical for the oil and gas industry. What do they love? What do they hate? Who are the personas that they serve? What is the customer’s journey look like? So the best organizations in oil and gas will build out what I call CXI customer experience innovations, and they’ll build it out as a formal innovation strategy. And as a result, they will continue to deliver incredible value across the supply chain. The second major shift of the C 19 economy is the big shift of enablers, and connectors. Now this is a very important part. enabling technologies will help oil and gas organizations increase efficiencies, reduce waste, leverage technologies like artificial intelligence to improve environmental impact and to identify new sources. The enablers of technology will be incredibly important over the next five years, as oil and gas continues their great trajectory. The second component of this big shift is the connectors. And we’re now seeing sensor technologies, connecting everything to everything. It is the Internet of Everything. And when everything across the supply chain and every valve and every instrument and everything that lives within oil and gas is connected, we will do a far better job of understanding how to improve efficiencies, how to reduce waste, and how to create more positive impacts on the environment. enabling technologies and connection architecture is an incredibly important part of oil and gas future. Lastly is new economic and value models. It used to be that most innovations occurred at the level of new product development. But today, the new innovations are primary Lee new economic models. Let’s face it, Instagram didn’t invent music. Netflix didn’t invent movies. They invented new ways to deliver it that was convenient and friction free and beautiful. Those are where the great opportunities are for oil and gas. So there you have it. Those are the big three shifts, hyper consumerization, the enablers and the connectors and lastly The new value and economic models. Hope you enjoyed this brief primer on the impact of the C 19. Economy on oil and gas. Until next time,

A real human