Digital transformation in oil and gas appears poised for growth as companies look for increased efficiency in an unpredictable market.
The award of a megadeal last week provides a sign of increasing interest: Kyndryl, an IT infrastructure services provider, inked a $160 million digital transformation and cloud services pact with the owner of the largest North American oil refinery.
Houston-based Motiva Enterprises, a wholly owned affiliate of Saudi Aramco, distributes Shell and 76 fuel brands and operates the Port Arthur Refinery, which has a crude capacity of more than 630,000 barrels a day. Kyndryl, with headquarters in New York, will work with the company to establish a hybrid, multi-cloud environment.
"Oil and gas customers are investing more than ever in key growth technologies, like cloud and AI, to power modern solutions," said Matt Milton, president of Kyndryl U.S. "This is where our work together is increasingly focused."
Prospects for growth
A recent study from Frost & Sullivan pointed to an expanding oil and gas market. The San Antonio market research firm noted that "digital transformation is occurring on a massive scale due to the need for increased efficiency, safety and sustainability."
Frost & Sullivan's forecast pegged the oil and gas automation market at $24.6 billion by 2025, growing at a compound annual growth rate of 7.5%.
More evidence of industry activity comes from Digital Intelligence Systems (DISYS), an MSP and staffing firm based in McLean, Va. The company last month entered a partnership with ComplianceQuest, which provides environmental health and safety (EHS) offerings for the oil and gas industry.
DISYS' managed services division will provide digital transformation services under the agreement, while ComplianceQuest will offer its EHS product suite.
Navigating rapid change
The digital transformation trend arrives at a time of turbulence in the energy industry. The Russia-Ukraine war has further complicated a sector already dealing with COVID-19's supply chain issues.
The Motiva-Kyndryl agreement aims to address those challenges, moving more of the oil company's business to the cloud for improved operational efficiency. Kyndryl will also look to simplify Motiva's in-house IT services.
Kyndryl is working with customers to "navigate a period of rapid change," Milton said, noting the company's history of running mission-critical services in the oil and gas sector. Kyndryl spun out of IBM in November 2021.
Accenture Ventures backs Tim Berners-Lee startup
Accenture Ventures invested in Inrupt, the enterprise software startup co-founded by World Wide Web inventor Tim Berners-Lee.
Inrupt aims to change the way organizations handle data, provide more transparency and prevent data silos with its Enterprise Solid Server platform based on the open source web technology Solid. Businesses and government organizations can use the platform to create vaults of personal data from disconnected sources for consumers and citizens.
Inrupt also joins Accenture Ventures' Project Spotlight program, which connects software startups with the Global 2000 for co-innovation.
Partner roster updates
Products for service providers
LucidLink, a cloud service vendor based in San Francisco, named Rupert Watson as director of EMEA alliances and channels. Watson previously worked with LucidLink as a reseller and held positions at Jigsaw24 and Avid.
Read the latest issue of the OGV Energy magazine HERE
Ace Aquatec and Ocean Health partner to develop FaunaGuard
Proserv and Intelligent Plant pen new agreement to underpin alliance
Digital transition and collaboration set to drive consultancy growth
Process safety professionals are invited to share feedback on new artificial intelligence tool