The oil and gas industry is entering a new phase of digital transformation as companies ramp up investment in cloud infrastructure, artificial intelligence and advanced analytics.
Analyst Richard Nguyen said in a note following the firm’s discussion with the head of the energy practice of a global consulting services provider, that energy groups are now focused on making operations “more autonomous and more intelligent,” with spending directed toward technologies that “deliver greater efficiencies in production and operations.”
Bernstein cited Gartner data showing that IT spending in oil and gas should grow at “7.4% p.a. at constant currencies over 2025–29,” slightly below the broader corporate average but still indicative of sustained modernization.
Even so, AI adoption is said to remain at an early stage.
“Only 13% of O&G groups have already deployed Agentic AI, and 49% plan to do it in 2026,” Nguyen wrote, noting that security, governance and IP protection issues continue to slow adoption, particularly in operational technology systems.
Bernstein pointed to estimates from Rystad suggesting digital initiatives could save the sector “>$320bn over 2026–30,” with the biggest benefits in drilling, predictive maintenance, reservoir management, logistics and autonomous robotics.
One early example is said to be SLB’s launch of Tela, described as “the first commercially available Agentic AI tool.”
Nguyen adds that oil and gas companies are embracing cloud and edge platforms across upstream, midstream and downstream segments, with firms such as Shell, BP and TotalEnergies using them to cut costs and boost performance.
Two-thirds of operators have already integrated their IT and OT stacks, Bernstein said, enabling predictive maintenance and remote asset management.
“Leveraging GenAI and real-time data streams – O&G groups are starting to develop solutions that can digitally recreate assets and processes to allow them to create “what-if” scenarios and assess future outcomes based on the current state and chosen parameters,” stated Bernstein.
“Beyond digital twins, these immersive technologies can significantly improve field/facility work efficiency and safety, and deliver substantial cost savings for O&G companies,” they concluded.