In spite of the prevailing low crude oil prices, oil and gas companies are willing to invest in new technologies to improve efficiency. Technology companies should take advantage of this opportunity to sell their innovations to oil and gas companies and grow their businesses. When oil prices are low, oil and gas companies are open to new ideas in improving production and reducing inefficiencies.
Low Crude Oil Prices Provides Opportunity For Tech Companies
Most oil and gas companies look for ways to reduce costs and improve profitability. New technologies that allow them to keep costs low, while keeping the rate of production steady will be welcomed by the oil and gas industry.
Rhiannon Meyers said in a recent article:
“The crude slump has forced companies to get creative, giving them a higher tolerance for risk as they snap up new technologies aimed at reducing inefficiencies and slashing costs, said Kirk Coburn, founder and managing director of Surge Ventures, in an interview with Fuel Fix.
With the oil industry now more willing to consider new ideas, Houston’s tech companies are in the best position to capitalize on the change of attitude, he said.”
Focus On Investing In Technology That Improves Efficiency
Fracking which was introduced by the oilfield services companies during the last downturn has helped boost the production of oil and gas. Texas oil rig companies did not have to be concerned about cutting costs or improving productivity, while the going was good and oil prices were high. However, the situation has changed. Today, many oil and gas companies are ready to accommodate and experiment with new technologies to help them become more efficient.
Companies which do not welcome these new technologies will be left out of the competition, as they will not be able to cope with the increase in oil production and rapid growth of other oil companies which invest in new technologies.
According to a recent article:
“Making the most of big data, IIoT and automation are indeed the next big opportunities for energy and oilfield services companies, and many are already starting work in these areas. They are increasing investments in enabling people and assets, with a growing emphasis on developing data supply chains to support analytics projects that can improve efficiencies, manage cost and provide a competitive edge. Our survey tells us that companies who do not continue to invest in digital technologies risk being left behind.”
Technology companies have reason to cheer even as oil companies are struggling to keep afloat. Oil and gas companies are open to investing in technology to improve efficiency. This article explains why technology companies stand to benefit in the current economic scenario.