Digital Transformation
7
min of reading
December 16, 2021

How to modernise the O&G market for industry 4.0

Hecktor Colombo
Content Creator
Marketing analyst. Specialist in content creation for blog, social networks, websites and journalistic text producer. Majoring in Marketing and Journalism at Estácio de Sá, in Rio de Janeiro
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A broad range of social segments are working to digitally transform their businesses, and that includes the oil & gas industry. Technology is deeply rooted in all activities, which directly impacts the dynamics of companies seeking to modernise and innovate.

This need for technological advancement impacts not only manufacturers, but consumers as well, since demands become focused on mitigating operational risks, lower impact on price fluctuation, and greater security in service offerings.

Therefore, the automation of repetitive tasks is a key factor to drive the competitiveness of companies, be them oil producers, drilling rig shippers, or equipment and service providers.

This article breaks down the difference between industry 3.0 and industry 4.0, and explains how the O&G industry can ride the modern integration wave. Enjoy!

The path to industry 4.0 in the Oil & Gas market

Most companies in the O&G industry still operate under the industry 3.0 model, also known as the Third Industrial Revolution. 

This period was marked by a major technological breakthrough in industries, pouring in innovations in computing and robotics, which ultimately led to a huge boost in productivity, quality and use of data across products.

Today’s needs, however, go beyond the use of technological tools. There’s a demand for better quality of life, safety and different outlooks of the world around us, in order to maximise human potential within companies, with autonomous and interconnected systems, and thinking minds. 

This new scenario can be defined as a moment of integration and connectivity in industry 4.0.

To transition the O&G industry from industry 3.0 to 4.0, it is crucial to clearly outline comprehensive digital transformation strategies.

This means creating a scenario in which companies can communicate with each other through a single platform. This includes both producers and distributors of oil and gas.  

This ensures all systems – proprietary and third-party – are connected, streamlining team dynamics, facilitating product shipping, safety in logistics between companies, generating offers and controlling prices. This ultimately enhances the end consumer’s experience.

This brings us to the API model, particularly API governance.

Click here to check out a complete overview of API governance, by Randy Heffner and other Sensedia experts.

The role of APIs in modernisation 4.0

The Oil & Gas industry can be divided into producers, companies that explore for oil and produce different products, and distributors, which are the B2C (Business to Consumer) companies

In this consumer-oriented model, there are many challenges that directly impact the quality of services and end products delivered to consumers. These difficulties are largely related to a lack of integration between internal systems, hindering the connection between OT (Operational Technologies) and IT (Information Technologies), or a lack of governance for existing APIs.

The first step to ensure a positive experience with the target audience is to establish a good internal flow system. But what does that mean?

  • Integrating systems for better control over logistics;
  • Collecting data to create offers;
  • Integrating with external third-party systems;

These API-based digital strategies allow companies to clearly outline and align their internal processes. And this directly impacts the consumer experience.

This convergence between operational and data systems of products is a key factor for the O&G market to establish an industry 4.0 model. 


That is why APIs and their governance become crucial to ensure these integrations are achieved with efficiency, scalability and security. Once these factors come into play, distribution companies can broaden their business vision and even expand to more open and connected models.

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