1、DIGITAL OILFIELD REPORT 2024Macro Dynamics in Upstream Oil and GasTIME TO GO ALL IN ON DIGITAL OILFIELD AND AIReport|SOFTSERVE ENERGY REPORT 20242CONTENTS02010703040506CONFLICTING MACRO DYNAMICS IN UPSTREAM OIL AND GAS(O&G)INTRODUCTIONOUR POINT OF VIEWHISTORY OF TECHNOLOGY AND INNOVATION IN UPSTREAM

2、 INDUSTRY REFERENCESNEW FINANCIAL PARADIGMOLD AND NEW CHALLENGESWHY GO ALL IN ON DIGITAL OILFIELD AND AIReport|SOFTSERVE ENERGY REPORT 20243INTRODUCTIONIn recent years,capital expenditure(CAPEX)in the oil and gas industry has significantly decreased,falling short of meeting the expected demands for

3、oil production in the next decade.Against this backdrop,and at a time when there are increasing challenges in exploration,drilling,and production,the oil and gas(O&G)sector has strategically pursued a capital discipline approach to lure back investors.In addition,the industry must inject hundreds of

4、 billions of dollars by 2030 to align with regulatory emission goals.Technological innovation has slowed in the last 15 years,with recent years seeing digitalization as the sole major contributor to operational efficiency improvements.If the upstream O&G industry wants to continue its strategy of ca

5、pital discipline,which is the most likely scenario,then increased investment in the right technologies is paramount.We believe that digitalization and AI can deliver the highest return-on-investment(ROI)in the shortest period of time with the least amount of investment.Its time for upstream O&G to g

6、o all in on digital oilfield(DOF)and AI.In this report,we discuss the macro dynamics,and present a history of technology and innovation and their impact on the industry.We also analyze the impact of the shifting investment paradigm,outline current and future business challenges,and explain why DOF a