Published Online:May 2025
Product Name:The IUP Journal of Operations Management
Product Type:Article
Product Code:IJOM010525
DOI:10.71329/IUPJOM/2025.24.2.5-22
Author Name:Mohammad Forozandeh and Atefeh Mohammadnezhadiyan
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:5-22
The oil and gas industry is undergoing significant transformation driven by Industry 4.0 technologies such as artificial intelligence (AI), digital twins, 3D printing, robotics, and augmented/virtual reality (AR/VR). These technologies enhance operational efficiency, safety, and sustainability in both upstream and midstream sectors. This paper presents a comprehensive analysis of the latest applications, benefits, and challenges of these technologies in the oil and gas industry. Despite promising improvements such as 20%-30% reduction in maintenance costs and up to 15% production efficiency gains, several barriers, including high capital costs, cybersecurity vulnerabilities, and workforce skill gaps, hinder widespread adoption. Case studies from industry leaders like ExxonMobil and Chevron demonstrate successful implementation strategies. Future research directions include integrating Industry 4.0 with renewable energy systems for sustainable and competitive operations.
The oil and gas industry is very vulnerable in the context of long-term viability. Increased interest in renewable sources of energy, more significant concern for environmental sustainability, and fluctuating energy prices have forced the industry to adjust and evolve (Alagoz & Alghawi, 2023).