Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has initiated a research study to assess services and solutions providers aiding oil and gas companies in their digital transformation efforts to enhance operational efficiency and prepare for future energy demands. The findings will be presented in a series of ISG Provider Lens™ reports, titled Oil and Gas Industry — Services and Solutions, set for release in December. The study includes two regional reports focusing on the North American and European markets. These reports will evaluate services such as enterprise asset management, next-gen information technology and operational technology (IT/OT) services, data management and cloud computing, and energy transition services.
Enterprise buyers can leverage the report’s insights to assess their current vendor relationships, explore new engagements, and understand available offerings. ISG advisors will utilize the information to recommend providers to the firm’s buy-side clients.
Technological advancements are significantly transforming the oil and gas industry. In the next two years, there is an expected increase in demand for IoT, data analytics, and AI, especially generative AI (GenAI). These technologies aim to optimize production processes, enhance equipment maintenance through predictive analytics, and enable remote monitoring to boost safety and efficiency.
Additionally, oil and gas companies are seeking technology solutions to support decarbonization strategies and energy transition. Governments are implementing stricter regulations to combat climate change, with policies like the U.S. Inflation Reduction Act and the proposed European Net-Zero Industry Act driving companies to reduce emissions. These regulations necessitate a shift in capital allocation toward clean and green processes such as carbon capture and storage, hydrogen production, and renewable energy integration.
Geopolitical events are also reshaping global energy trade patterns. The impact of factors like the Russia–Ukraine war on energy security and potential realignments in trade routes remain challenging for the industry.
“The oil and gas industry is navigating a highly complex environment,” said Iain Fisher, director of ISG Provider Lens Research. “While fossil fuels continue to be a significant energy source, the industry is undeniably evolving. Geopolitical tensions, the ongoing push for energy security, and the relentless march toward a low-carbon future are all influencing the industry’s landscape.”
For this study, ISG has distributed surveys to 37 providers of oil and gas industry services and solutions. In collaboration with ISG’s global advisors, the research team will create four quadrants representing the services and solutions typically purchased by oil and gas companies, based on ISG’s client experience. The four quadrants are:
- Enterprise Asset Management: Evaluating providers that help oil and gas companies optimize asset performance and utilization, increase production uptime, and reduce operational costs.
- Next-Gen IT/OT Services: Covering providers that help clients increase efficiency, ensure compliance, and minimize overall costs, with offerings including infrastructure services, application development and maintenance (ADM), IoT-based solutions, cybersecurity, remote monitoring, digital twins, and more.
- Data Management and Cloud Computing: Covering providers of cloud data and process management, storage, application, and master data management services to centralize data and processes and transition from legacy systems.
- Energy Transition Services: Evaluating providers offering services to help oil and gas companies achieve net-zero carbon targets, implement energy efficiency initiatives, and drive new business models for the evolving energy ecosystem.
