Industry Challenges in 2025

The oil and gas sector today straddles two worlds: aging, siloed systems on one side and the pressure for digital, low-carbon operations on the other. Global studies confirm this reality. For example, a 2024 DNV survey found 62% of O&G executives view digitalization as central to their strategy, yet only 15% have fully deployed AI in live operations. Executives cite mission-critical challenges across the board:

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• Digital Fragmentation: Decades of legacy IT have led to disconnected processes and data silos. Disparate SCADA, ERP, SCM and field systems hinder visibility and fast decision-making.
• Regulatory Complexity: Varying regional rules and new ESG mandates force oil and gas firms to constantly adapt. Today’s regulations demand carbon-aware operations and full emissions reporting, raising compliance costs.
• Capex-Intensive Transformation: Upgrading infrastructure is expensive. Any digital project must show clear ROI to justify large upfront spend.
• Sustainability and ESG Pressure: Investors and governments now insist on carbon reduction and social responsibility. Reducing methane leaks, optimizing fuel use, and transparent reporting are table stakes.
• Talent and Cultural Change: A new generation expects digital-native workplaces. Companies must integrate automation and AI or risk talent attrition.

These hurdles are less “IT problems” than strategic inflection points. Successfully navigating them requires a systematic, data-driven mindset. As one Gartner survey notes, nearly 64% of oil and gas firms say digital initiatives have already improved performance. IQS Tech’s role is to channel this momentum — turning high-level imperatives (carbon reduction, efficiency, resilience) into actionable roadmaps.

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