Tech for 2025: What’s coming for the oil and gas industry

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As the global oil and gas (O&G) industry enters 2025, the need to increase efficiency, develop and adopt new technology and enhance exploration, production and refining capabilities is becoming ever more important.  

With the sector undergoing rapid technological advancements, it will need to address critical challenges in sustainability, operational efficiency and resource optimisation, as the global demand for hydrocarbons show no signs of abating.  

In fact, the growing global need for energy and petrochemicals, coupled with ongoing energy security concerns, could prompt rising demand for oil into 2030, despite the rapid deployment of green energy, according to a GlobalData response to the International Energy Agency’s (IEA) Oil 2024 report.  

The IEA found that oil markets face challenges as medium-term structural shifts are expected to cause excess supply in five years’ time, with green and energy-saving technologies helping to gradually slow the pace of oil demand growth.   

Offshore Technology looks at some of the most important coming trends in O&G development and assesses how the industry will change over the next twelve months – and what technologies are likely to come to the fore.  

“The oil and gas industry has traditionally been slow to adopt new technologies due to the capital-intensive nature of its projects, complex designs, remote locations and long timelines,” says Ravindra Puranik, an oil and gas analyst at GlobalData, Offshore Technology’s parent company.  

However, increasing pressures to improve sustainability and efficiency are driving change in key areas, he adds, and while “these changes may seem gradual on an annual basis, the foundational shifts can take years.”  

“The industry is making significant progress in areas such as digitalisation, automation, carbon capture and alternative energy sources, pushing towards a cleaner energy future,” he says, arguing that the industry is likely to see “continued technological advancements with notable improvements.” 

Digitalisation is expected to gain further momentum in the industry, says Puranik, with technologies such as artificial intelligence (AI), robotics, and the Internet of Things (IoT) playing pivotal roles. “AI in particular is transforming oil and gas operations through predictive analytics, reservoir management, automation and supply chain optimisation.”  

A GlobalData thematic report from late 2024, “Digitalization in Oil and Gas,” stated that in recent years the oil and gas industry has progressed from using digital technologies for select use cases to making their entire processes digital. 

Puranik says that AI enables autonomous operations on drilling rigs, offshore platforms and other facilities, “improving productivity, cutting costs, enhancing safety and reducing the carbon footprint”.  

“As oil prices fluctuate, the need for precise decision-making, cost reductions and efficiency gains become crucial for maintaining competitiveness in the industry.”  

AI is often used to help assess the economic value of reservoirs and formulate drilling plans and schedules, as well as assess seismic data to help determine risk. 

A GlobalData survey, carried out last year, asked industry members to rank which digital technologies will be the focus of investment for oil and gas companies over the next two years. The 206 respondents could pick three technologies from the five options: AI, Big Data, the Internet of Things (IoT), robotics and virtual and augmented reality (VR and AR).

The survey saw AI way out in front, with just over 80% of respondents picking it as a priority.

This is something Donald Trump, the newly installed US President, would no doubt agree with, having announced “the largest AI infrastructure project by far in history”, called Stargate, on his second day in office, said GlobalData.

The venture includes the creators of ChatGPT, OpenAI, Oracle, Japan's Softbank and tech investment arm of the United Arab Emirates, MGX. It will attempt to build a $500bn AI infrastructure network in the US, creating around 100,000 jobs.

In second place in GlobalData’s survey was the increasingly important area of robotics, at 66%, with Big Data a close third, at almost 63%.

The IoT ranked further back, at 51%. The IoT has impacted the global O&G industry in a variety of ways, allowing devices and machines to communicate and share data more easily, with sensors enabling real-time data collection and remote monitoring of pumps, pipes and filters. 

“Field personnel are extensively using handheld devices to gather data, make notes and communicate with their team, with the aim of reducing inefficiencies in workflows,” says Puranik.  

“Technologies are also aiding in overseeing the vast infrastructure to prevent accidents or unplanned shutdowns. Operational risks are also reduced due to a lesser need for human intervention in hazardous environments – a very important benefit of digitalisation,” he adds. 

VR and AR came in last, at just under 40%. 

Oil and gas companies now have the capability to create digital twins, replicating refinery and oilfield operations, with VR headsets able to offer practical training in a completely safe environment. Changes across the O&G industry are driving the replacement of traditional methods with new technologies and approaches, often due to cost inefficiencies, emission concerns or obsolescence, adds Puranik.  

“For instance, manual data collection at production sites is being phased out in favour of safer, more efficient solutions. Sensors, connectivity and data analytics are revolutionising workflows, enabling automation, remote operations and the use of digital twins.” 

Gas flaring is steadily declining as global oil producers commit to eliminating routine flaring by 2030 to reduce overall emissions, according to GlobalData.  

“For greenfield developments, the focus is shifting toward adopting sustainable technologies, such as electrification, carbon capture and energy-efficient equipment, to create operations that align with environmental and efficiency goals,” says Puranik.  

In October 2024, the UK’s new Labour government announced plans to commit almost £22bn ($28.97bn) to fund carbon capture and storage (CCS) projects in two clusters in the north of England, which will include associated infrastructure and transportation. 

The administration has pledged the money, to be spread over 25 years, for projects to secure carbon emissions from energy producers, wider industry and hydrogen power production. 

Another technological development is likely to be the introduction of low code/no code (LCNC) platforms (which allow users to create applications without writing code, usually by using visual drag and drop tools to build apps and websites).  

For example, the platforms could allow offshore workers to quickly build digital solutions without the need for an IT-based commissioning or development process.  

The use of Big Data by O&G companies will also likely increase, as the vast amounts of easily accessible information allow firms to customise predictive models, which help to optimise decision-making. 

Finally, blockchain technology might not seem a natural fit for the O&G industry, but it does offer a way to secure and simplify complex supply chain processes, as well as offer enormous amounts of transparency. As such, O&G trading, inventory replacement tracking and payments become easier.