The oil and gas industry landscape is now changing fast with many companies adopting cloud computing, AI tools, machine learning etc. Read more.
The oil and gas industry is considered as one of the industries that lagged in technological adoption. That landscape is now changing and fast with cloud computing. Here is a glance at how this adoption happens, what benefits they bring in to the industry, and what operations are improved by this technology.
Slow But Steady Progress
Even though some companies in the oil and gas industry began adopting cloud solutions around a decade ago, the progress has been slow in terms of other companies following suit. With overall business facing many challenges and open conversations on environmental impacts, companies started looking at new ways to strategize effectively and grow. Cloud computing is one such avenue that will enable the industry to handle its universal challenges.
From research and development to customer distribution, cloud-based applications have penetrated every corner of the oil and gas industry. The cloud applications market for the industry from 2019-2024 is projected to grow from $4.9 billion to $9.4 billion at a compound annual growth rate (CAGR) of 14.2%. A major growth driver for this growth is the recent rise in private cloud adoption to facilitate advanced data encryption and lower overall costs. Among various geographical areas involved in the industry, Europe, the Middle East, & Africa are projected to be the key players in the near future.
What Cloud Computing Brings to the Oil and Gas Industry
Companies within the oil and gas industry deal with large amounts of data in every stage of operation. Hence, it is no surprise that sophisticated data storage, processing, and management are prime use cases of cloud technology in oil and gas. Enterprises also face strict data regulations with regard to geopolitical regions and have to ensure that their data has the highest level of protection. Cloud providers can take care of all these without causing infrastructural headaches for the companies.
Cloud adoption also brings in the power to better use technologies such as artificial intelligence (AI), the Internet of Things (IoT), and Machine Learning in the oil and gas industry. For example, AI and IoT tools can be used in geographical surveys, production, and refining processes, with the cloud storing and managing data. Company professionals can employ remote monitoring and access to keep tabs on the processes, no matter where they are in the world.
Scalable infrastructure is yet another benefit cloud brings to the oil and gas industry. Since business needs are often dynamic, enterprises need dynamic systems to support their operations better and reduce wastage of resources. All cloud models can scale according to business requirements, and cloud providers can make it happen without any hassle. This benefit also brings to focus another advantage of the cloud, which is minimized costs. Since infrastructure and management are all handled by the provider, the company doesn't need to employ resources, time, and money into any of it, except paying for the cloud that is used. This reduces many headaches and pays off long term in terms of cost.
Operations Benefitting from Cloud Adoption
As mentioned earlier, cloud computing has effects on and has improved all aspects of business operations for the oil and gas industry. Here is a look at the various operations that have benefitted from cloud solutions.
- Exploration and production -
- Processing and refining
- Finance management
- Sustainability initiatives
- Marketing and supply chain management
VEXXHOST Cloud Solutions
With the right cloud provider, a company can expect business operations to get better from day one of deployment. We have seen how cloud computing is impacting the oil and gas industry. Among the various cloud environments, OpenStack-based clouds are in high demand, as they offer excellent flexibility and business agility for companies. At VEXXHOST, we provide many OpenStack-based cloud solutions, including dedicated and highly secure private cloud environments. We help companies across numerous industries get enterprise-grade clouds without vendor lock-ins or licensing fees.
Speaking of private clouds, you can now run on a fully agile and customized cloud from VEXXHOST, with no licensing fees and smooth 2-week migration. In fact, we're ready to put our money where our mouth is. We're so confident in being able to save you at least 20% or more on your current cloud infrastructure expenditure that if proven wrong- we'll give you $1,000 credit to our public cloud.
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