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TECHNOLOGY
How Digitization Lowers
Oil & Gas Industry
Break-even Costs
The impact of variables Sebastien Dufour, Oil & Gas Global oil prices. For example, global oil prices
Analyst
fell to a 13-year low of $26.55 per barrel
such as politics, geological Rajesh D. Sharma, Global Marketing on January 20, 2016. Six months before
Director, Oil, Gas and Petrochemicals
that, prices averaged $60/b. A year earlier
characteristics and in June 2014, they averaged $100.26/b.
Today’s oil price fluctuates due to these
geographical location of ccording to the U.S. Energy constantly changing conditions.
Although volatile oil prices make it chal-
assets on changes in break- Information Administration lenging for oil companies to manage their
markets, the silver lining in low oil prices
(EIA), crude oil Brent prices
even costs, often used as will average $67 a barrel is that it forced the industry to focus on
in 2019 and 2020. Oil pri- rendering their internal operations more ef-
indicators for assessing the Aces have been volatile over ficient. O&G producers cut their costs dra-
attractiveness of energy the last five years thanks to unexpected matically to remain profitable. The industry
embarked on an optimization path and
swings in the key variables of politics,
investments economy and technology affecting supply consequently accelerated the adoption of
digital transformation.
and demand dynamics and consequently
40 Impiantistica Italiana - Maggio-Giugno 2020
