December 04, 2025 [China Briefing]- Why the oil and gas industry can no longer do without software

The oil and gas sector stands in the midst of the biggest digital revolution in the past half-century. Companies that just yesterday relied on paper reports, Excel, and the experience of senior engineers are now forced to rethink their approaches to remain competitive. The choice they must make: either invest in transitioning to digital technologies or gradually fall behind in this race. And this is a fact confirmed by numbers.

The market for digital solutions in oil and gas forecasts around 16 percent stable annual growth through 2033. The industry hasn’t seen such dynamics since the oil boom of the 1970s. The only difference is that back then, companies were searching for oil, and now they need to search for data. And those who know how to properly “extract” it will win the efficiency race.

There is no mercy in the competition in this industry. Companies are implementing artificial intelligence to predict breakdowns, using cloud services for real-time data access, connecting IoT sensors that “see” equipment condition better than an engineer with twenty years of experience. And relying solely on human expertise is no longer an option.

In 2026, progressive software becomes a basic tool for market survival. And companies that slow down digital transformation risk becoming as archaic as those who once refused email because “a fax is enough.”

AI and predictive analytics

Today, drilling rigs or compressors can “complain” when something’s wrong. Not through an engineer, but directly to a system that analyzes their condition in real time. DXC Technology offers comprehensive IT solutions for the oil and gas industry that include powerful AI-based predictive analytics. Their platform analyzes thousands of parameters in real time: vibrations, temperature, pressure, energy consumption, and machinery operation sounds. Machine learning sees patterns that humans simply cannot notice.

One striking case is a mining company that implemented the DXC platform to analyze heavy equipment operator behavior and equipment condition. The system identified inefficient work patterns and potential failure points before they escalated into serious problems. The result: U$13 million in annual savings simply because breakdowns stopped being “surprises.”

In oil and gas, this is even more critical: an hour of drilling rig downtime can cost up to US$500,000. And DXC’s AI solutions reduce unplanned downtime by up to 50 percent. In other words, this isn’t just a “smart system,” it’s insurance against million-dollar losses.

But the most interesting part is that artificial intelligence doesn’t just react, it suggests how to optimize extraction. The system analyzes geological maps, market prices, and well productivity, and suggests where it’s better to drill and where to slow down. So DXC provides not just monitoring, but a digital analyst that works 24/7, without breaks or coffee.

Cloud platforms in oil and gas

If companies used to store seismic data on local servers and wait weeks for processing results, now all this happens in the cloud, literally within hours. And here, three giants are immediately in the game: Microsoft Azure, AWS, and Google Cloud.

Microsoft started its “energy sprint” with Chevron. The company moved reservoir modeling and analytics to the Azure Energy Platform, which allowed them to obtain more accurate well productivity forecasts and reduce geological exploration costs.

Amazon Web Services created its own initiative: AWS Energy Practice. It’s used by BP and Shell. For example, BP processes petabytes of seismic data that are used to “spin” for months. Now the same data is analyzed in days. Shell went even further, connecting its refineries worldwide to AWS, creating a unified real-time monitoring network.

Google Cloud isn’t falling behind. Their Cortex Framework is used by Equinor for predictive analytics of offshore platforms. The system tracks equipment condition and warns of potential failures weeks before they occur. TotalEnergies also works with GCP to forecast demand and optimize supply chains.

Clouds provide what wasn’t there before: flexibility and scale. Companies can increase computing power for new projects and scale them back just as quickly. And yes, now an engineer somewhere in Odesa can observe a well in the North Sea in real time simply from their phone. No jokes. This is no longer the future; this is today’s digital oil and gas industry.

IoT and smart sensors

Today, every valve, pump, or tank in oil and gas has its own “voice.” And this voice is IoT sensors that collect and transmit data about equipment condition, even when engineers are asleep.

Siemens is a true veteran of industrial IoT. Their MindSphere platform operates at Saudi Aramco facilities, where tens of thousands of sensors monitor temperature, pressure, vibrations, and even pump noise 24/7. This isn’t just control, it’s like having X-ray vision for the entire company infrastructure.

Honeywell went even further with its Connected Plant. Their solution is deployed at ExxonMobil plants, where sensors monitor process efficiency, fuel quality, and emission levels. If the system sees something not working optimally, it changes its parameters itself. No calls, approvals, or midnight trips.

And Schneider Electric, through its EcoStruxure for Oil & Gas platform, ensures complete process transparency from extraction to transportation. For example, Eni uses their solutions on offshore platforms in the Mediterranean. Sensors analyze weather, underwater structure condition, and can warn of an accident long before something goes wrong.

So no, your pipes aren’t preparing a Skynet-style uprising. But they’ve definitely become smarter. A sensor won’t forget to check readings after lunch and won’t ignore strange vibrations. And most importantly, this data gives companies a chance to see production “bottlenecks” and increase productivity without additional costs.

Automation and robotics

Robots used to be only in factories; now they’ve appeared on drilling rigs too. And not for show, they really save lives and money.

ABB Robotics has been working in oil and gas since the ’90s, but has made a real breakthrough in recent years. Their mechanical “arms” perform the most dangerous tasks: repairing equipment under pressure, working with toxic substances, or inspecting tight spaces. Equinor (formerly Statoil) started using ABB robots on its offshore platforms back in 2015, and they now perform up to 30 percent of dangerous tasks instead of humans.

Halliburton has made drilling almost autonomous. Its iCruise and Geo-Pilot systems drill with precision and speed that humans simply cannot replicate. In the Permian Basin (US), ConocoPhillips uses these technologies so drilling rigs operate 24/7, without breaks and without human errors. The result: drilling 20-30 percent faster and significant budget savings.

And then Boston Dynamics appeared with its four-legged robot Spot. It’s already being tested by BP and Shell. Spot walks between tanks, listens to pipes, searches for gas leaks, measures temperature, and even makes rounds during storms. And best of all, it doesn’t get tired and doesn’t get distracted by coffee.

While robots monitor drilling rigs, there’s a revolution happening in offices. UiPath and Automation Anywhere automate routine processes: compiling reports, checking documents, ensuring regulatory compliance. This is called RPA (Robotic Process Automation). Such “software robots” don’t sleep, don’t make mistakes, and free specialists for tasks that really require brains, not copy-paste.

As a result, companies get a new type of worker: a person who manages systems, not the other way around. And this, without any exaggeration, is the best upgrade for the industry in recent decades.

Cybersecurity: Lessons from Colonial Pipeline and solutions from Dragos, Claroty

May 2021 became for the oil and gas industry what the Titanic was for shipping: a painful reminder that even giants sink if they ignore risks. The attack on Colonial Pipeline, organized by the DarkSide group, stopped fuel supply to the US East Coast. People panic-bought gasoline, prices skyrocketed, the company paid U$4.4 million in ransom, and the economy felt the domino effect.

This wasn’t the first strike. Back in 2012, Saudi Aramco lost data on 30,000 computers due to the Shamoon virus. And unfortunately, there are many such stories. Today, oil and gas is at the top of cybercriminal targets. Because where there’s big money, there are big temptations.

To counter this, companies are shifting from reaction to prevention. Dragos Platform was created specifically for industrial systems (ICS/SCADA): not just “antivirus for servers,” but a cyber shield for pipelines and drilling rigs. It analyzes traffic in real time, looks for suspicious actions, and blocks attacks before an operator has time to raise an eyebrow. Chevron and Marathon Petroleum are already actively using it.

Claroty is another leader in OT security. Their system sees every device on the network, from sensor to controller, and creates a digital map to know exactly who has access where. At Phillips 66, Claroty helps segment the network so an attack on one facility doesn’t “take down” the entire infrastructure.

And in the era of cloud technologies, Palo Alto Networks is indispensable. Their Prisma Cloud encrypts data, monitors user behavior, and blocks intrusions at the API level. Add backups and disaster recovery, and even in the case of an attack, a company can recover in hours, not weeks.

The moral is simple: in oil and gas, cybersecurity is no longer “a line item in the budget,” but a condition for survival. Because every minute of downtime can cost hundreds of thousands of dollars and a reputation that can’t be restored even with millions.

The future of oil and gas: Digital or nothing

The world is rapidly moving forward, and 2026 will be a watershed between companies that have implemented technologies and those still waiting for “the right moment.” Spoiler: there won’t be a right moment. No matter how you spin it, this is about big investments, and fear will always find reasons not to make them.

Those who are already investing in AI, IoT, cloud platforms, automation, and cybersecurity today are getting an advantage not of a few months, but of several years. They see their data in real time, make decisions faster, optimize processes, and minimize risks.

The key to success is technology synergy. Sensors collect data, clouds store it and provide access, AI analyzes, automation executes, and cybersecurity protects. Together, they create a unified digital ecosystem where each element reinforces the other.

Where to start? With something simple: auditing your processes. Look at where you’re spending time, where equipment breaks down most often, where people risk their lives due to lack of automation. Find these “bottlenecks” and close them with technologies. Not everything at once: start with one pilot project, test it, scale it.

The oil and gas industry won’t disappear. But it will no longer be the same. Companies that embrace digital transformation will become leaders. Those who don’t will become textbook examples of how technologies “made a revolution.”

2026 is the year when the choice is simple: either you manage technologies, or your competitors’ technologies manage the market without you.