The oil and gas industry, often perceived as slow in adopting technological advancements, is undergoing a significant transformation. As labor-intensive sectors embrace digitalization, oil and gas companies are introducing various technological changes to improve their operational efficiency. This shift is particularly crucial as the COVID-19 pandemic forces industries indoors and oil prices continue to decline due to market oversupply. Recognizing the urgency of embracing technology, Oman is taking significant strides to leverage modern innovations in its oil and gas sector. With approximately half of its oil reserves consisting of heavy oil, Oman faces challenges in extraction due to high costs and technological requirements. Additionally, the country has experienced volatility in its oil and gas market in recent years. However, amidst these challenges, Oman’s stability and strategic location make it an attractive investment destination. To navigate the current situation successfully, companies must focus on reducing exploration, extraction, and production costs, and technology plays a pivotal role in achieving these objectives.

Zeinoun Klink, Halliburton’s Country Vice President, highlights the significance of technology, particularly in mature oil fields, where productivity enhancement is critical. The majority of Oman’s oil production comes from such fields that have exceeded their peak production levels. Advanced technologies, including enhanced oil recovery (EOR) processes, offer opportunities to maximize the potential of these fields. Smart technologies, such as geosteering, provide real-time 3D overviews of drilling operations, enabling optimal well placement and improved recovery from thin reservoirs.

To ensure the long-term sustainability of the industry, smart drilling technologies are becoming increasingly important. These tools assist companies in understanding the timing, location, and methods for exploiting oil fields, especially during exploratory phases. Moreover, the deployment of smart oilfield technology enables real-time data acquisition without delays. This empowers operators to make informed decisions promptly and eliminates the need for on-site contractors, a crucial factor in light of global quarantine measures.

Oil and gas companies are also embracing online platforms to facilitate the sharing of sector knowledge and expertise. These platforms, such as OGES, connect researchers, experts, and industry professionals, enabling collaborative problem-solving. By expanding this sharing culture, the sector can also enhance research and development efforts. Investments in R&D allow for an optimal balance between production cost and performance, as highlighted by Sohail A. Mikrani, Deputy General Manager of Maktoom.

According to McKinsey Global Institute’s 2020 report on new technologies, advanced exploration and recovery techniques in the oil and gas industry are projected to have an economic impact ranging from USD 100 billion to USD 500 billion by 2025. Furthermore, these technologies are expected to yield between 3.6 and 6.2 billion oil-equivalent barrels of oil and gas. Despite the uncertainties surrounding the virus’s impact, increased technology adoption will drive the industry toward achieving these estimates globally. However, to fully leverage the exponential growth potential of technology, companies must implement these changes sooner rather than later.

Oman’s oil and gas industry is embracing technology as a catalyst for transformation and growth. By adopting advanced techniques and tools, the country aims to overcome challenges associated with heavy oil extraction and market volatility. Technological advancements in mature fields, smart drilling, and real-time data acquisition empower companies to optimize productivity while ensuring environmental sustainability. Collaboration platforms facilitate knowledge sharing and collective problem-solving, fostering innovation in the sector. As the industry faces economic uncertainties, technological innovations offer a promising path forward. Embracing these changes will position Oman and the global oil and gas industry to thrive in an increasingly digitalized and interconnected world.