The level of digital technology will determine the future energy landscape

In the 5G era, no matter what digital development strategy is adopted, the core issues that oil companies are concerned about are still value acquisition, partners, and ownership and use of data.

While the effectiveness of digitalization depends on how quickly a company can adopt it on a large scale, oil companies are focused on what technology and organizational structure can achieve the best results and obtain the highest value.

When it is difficult for companies to implement complex digital strategies with their own technological strength, oil companies focus on which areas require cooperation and which areas they can lead, so as to choose suitable partners.

The higher the degree of digitization of upstream exploration, development and production departments, the more they realize the value of data and prefer to own the data generated by the company's assets and activities. Oil companies are concerned about the extent to which third parties can access and use the above data, especially when current partners may become future competitors.

At present, the space for reducing costs by conventional means is shrinking, and the fulcrum of the new round of cost competition is likely to be digital technology. The speed and level of application of digital technology by various competitors will determine the future energy landscape. How to effectively generate, mine and use data may be the main line of behavior in the oil and gas industry in the next decade.

From now on and for a considerable period of time in the future, digital technology will be an extremely important force in promoting industrial transformation.

5G时代的到来，更快的数据传输速率与更低的网络延迟无疑给予数字化技术更多能力，对于油气行业生产力、利润、安全性和效率的提升效果将更显著。

In the future, the Internet of Things will become one of the most important infrastructures in the oil and gas industry. However, the traditional Internet of Things mainly uses wired methods to connect devices, which makes the construction cost of the Internet of Things high, and according to the traditional information transmission method, the information transmission speed is still low.

The advent of the 5G era will bring about the rapid development of IoT technology. Compared with 4G, 5G not only has the "added capabilities" of high bandwidth and low latency, but also has the low-cost advantages of low energy consumption, large connections, and deep coverage. This feature is more in line with the basic characteristics required by the IoT.

With the help of 5G, the construction of the Internet of Things in the oil and gas field can carry more device connections and transmit larger traffic. This will promote the construction of the Internet of Things in the oil and gas industry into a truly large-scale era and further achieve cost reduction and efficiency improvement in the oil and gas industry.

my country is a global leader in 5G technology and a pioneer in information technologies such as artificial intelligence, big data, cloud computing, and the Internet of Things. In response to the call of the times, my country's oil and gas companies should make a difference in the digital transformation of the industry. At present, PetroChina and Sinopec have carried out digital demonstration projects in the fields of exploration, development, equipment manufacturing, business and trade.

In the future, my country's oil and gas companies should consider the breadth and depth of the application of digital technology in production links, equipment and facilities, management functions, etc. based on actual conditions, actively improve the productivity, profits, safety and efficiency of the oil and gas industry, and actively respond to the resulting changes in business models, production models, organizational structures, systems, and workforce.