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Technology Assessment
Edge Computing in Oil and Gas
Andrew Meyers
IDC OPINION
Edge computing brings computation and storage closer to the location it is needed while improving
response times and saving bandwidth. The hype around applications in the oil and gas industry is
beginning to ramp up, but in reality, large scale deployments are still some years out.
Industry profitability issues will hamper adoption in the short to medium term but more
successful pilots will prove up ROI and help industry managers embrace the technology.
Meaningful use cases will require a vision to levera e the value of the analytics provided by
the technology.
Mass adoption is possible in medium to long term in the instance drilling operations become
far more autonomous with the aid of robotics.
April 2020, IDC #U
IN THIS STUDY
Edge computing in the oil and gas industry has been adopted as a point solution in different aspects of
the value chain such as production, operations, and process functions. In this piece, we look at what
drivers exist for edge, types of projects have successfully utilized it, facets of the technology and
vendors, inhibitors of adoption, and advice to market players.
SITUATION OVERVIEW
The oil and gas industry is beginning to embrace the value of the intelligent enterprise. IT
organizations throughout the sector are focusing on building up the digital core and evaluating the
proper footprint for each business unit. Edge computing technology is allowing the enterprises to
design and scale appropriately. Often there are substantial data and processing requirements that may
be in remote locations or of limited connectivity. Edge computing could reshape enterprise software
and hardware constraints and allow for a much smarter enterprise. Many use cases for the technology
are still in development, and there are discussions about how other technologies such as cloud,
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