Oil & Gas units . Offshore operations are moving towards electrification to reduce emissions and improve efficiency . Subsea operations benefit from allelectric technologies , offering simpler control systems and reduced topside costs . Midstream and downstream sectors are also exploring electrification to enhance efficiency and reduce emissions .
Cost reduction Cost reduction becomes a priority when oil prices fall below the breakeven price . The industry has experienced two price crashes in the last decade , leading to asset sales , layoffs , and operational efficiencies . U . S . shale drilling , for example , saw a 20 % reduction in average breakeven costs . Electrification and operational optimizations are among the strategies employed to lower costs .
Technology trends Digitalization is transforming the industry , with a focus on analytics , AI , automation , IoT , and cloud computing . Cybersecurity is critical to protect the increasingly digitized infrastructure . Big data and analytics are leveraged to improve decision-making and efficiency . Remote operations , accelerated by the pandemic , are becoming more common , with companies like Baker Hughes reporting a significant portion of their drilling services being executed remotely .
Conclusion Between 2015 and 2021 , the oil and gas industry faced significant disruptions but emerged stronger financially and operationally . As the industry navigates the global energy transformation , companies face the challenge of adapting to declining demand for fossil fuels while investing in and transitioning to renewable energy sources . The industry ’ s future depends on balancing current profitability with sustainable long-term strategies .