Energy companies and ICT

In 2013, ICT spending in the energy sector rose according to a new Kable survey of 128 energy companies. The worldwide survey revealed that a large portion of energy companies have raised their ICT budgets at an increase of 8% on 2012 levels. The survey also further boosted the optimism of technology spending in the sector and highlighted a 6% decline in the proportion of respondents who reduced their ICT budgets in 2013 compared to 2012. In order to increase operational efficiencies, energy companies have also invested 50% of their external ICT budgets in hardware and software in 2013.

Analysis of the core technology investment priorities of energy companies reveals that spending on enterprise applications is central to their ICT strategies. The survey found that 95% of energy companies are planning to invest in enterprise applications through to the end of this year. The survey also showed that the penetration level of enterprise mobility amongst energy companies is high at 92% and that 82% of respondents are planning to invest in this domain through to the end of 2014.

The survey also revealed that company CIOs mainly influence important decisions regarding ICT investments. With IT emerging as an essential tool for improving productivity, CEOs and CFOs have also been taking a more active role in ICT decision making. Kable believes that favourable relationships at board level are necessary to develop suitable IT strategies for energy companies. This is important given the increasing reliance of these companies on technology.

Comments on the findings

Tim Gower, Kable Research Director, ‘energy companies largely prefer deploying technologies onsite rather than as a hosted service. As energy companies face several legal and regulatory compliance issues, the sector is witnessing a slow adoption of hosted services.’

Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.oilfieldtechnology.com/exploration/10022014/energy_and_ict_149/