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Oil and Gas Firms in Americas use AI to Modernize Operations

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Key Terms

digital transformation technical
Digital transformation is the process of using digital technologies to fundamentally change how organizations operate, deliver value, and connect with customers. It often involves updating systems, automating tasks, and improving digital tools to increase efficiency and stay competitive. For investors, it signifies a company's ability to adapt to technological advances, which can impact its growth prospects and long-term success.
digital twins technical
Digital twins are virtual replicas of physical objects, systems, or processes that simulate their real-world counterparts in real time. They allow users to monitor, analyze, and predict how the actual entity will behave under different conditions. For investors, digital twins can provide valuable insights into performance and potential risks, helping to make better-informed decisions.
predictive maintenance technical
Predictive maintenance involves using data and technology to monitor equipment or machinery in real time, identifying potential problems before they cause failures or breakdowns. By predicting when maintenance is needed, it helps prevent costly repairs and downtime. For investors, it highlights how companies can reduce expenses, improve efficiency, and maintain reliable operations, which can positively impact financial performance.
genai technical
Generative AI (genai) is a type of artificial intelligence designed to create new content, such as text, images, or music, that resembles human-produced work. It matters to investors because it has the potential to transform industries by automating tasks, enhancing creativity, and enabling new products and services, which can influence company performance and market opportunities.
greenhouse gas technical
Gases such as carbon dioxide, methane and nitrous oxide that trap heat in the atmosphere like a blanket, causing global temperatures to rise. For investors they matter because regulation, carbon pricing, physical damage from extreme weather and changing consumer preferences can alter a company’s costs, profits and long‑term value, so measuring and managing these emissions affects financial risk and opportunity.
carbon capture and storage technical
Carbon capture and storage is a set of technologies that remove carbon dioxide from industrial emissions or the air and keep it isolated, usually by compressing it and injecting it deep underground for long-term storage. For investors, it matters because it can lower a company's regulatory and climate risk, create new revenue or cost opportunities, and influence future demand for energy, materials, and services—think of it as a vacuum and lockbox that helps firms meet emissions limits and avoid penalties or lost market share.
cybersecurity technical
Cybersecurity involves protecting computers, networks, and digital information from theft, damage, or unauthorized access. It is essential for safeguarding sensitive data and maintaining trust in digital systems, which matters to investors because strong cybersecurity reduces the risk of costly breaches and disruptions that can impact a company’s performance and reputation. Think of it as locking and safeguarding valuable information much like securing a safe to prevent theft.
biofuels technical
Fuels produced from recently living organic material, such as crops, plant residues, algae, or waste, that can be used as alternatives or blends with conventional petroleum fuels for transportation and energy. They matter to investors because they affect demand for agricultural commodities, energy infrastructure, and clean‑energy subsidies; like swapping one type of gasoline for another, the shift to biofuels changes which companies, technologies, and supply chains capture revenue and face regulatory pressure.

Companies invest in digital transformation, cleaner energy strategies to strengthen resilience, efficiency amid market volatility, ISG Provider Lens® report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Oil and gas enterprises in the Americas are accelerating adoption of digital platforms, AI-enabled operations and decarbonization technologies as they respond to cost pressures, geopolitical uncertainty and the transition to new energy sources, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens® Oil & Gas Industry — Services and Solutions report for the Americas finds that companies in the region are prioritizing operational efficiency, emissions reduction and resilience by modernizing core systems and processes while balancing profitability and sustainability goals.

“Oil and gas producers in the Americas are reshaping their operations by embedding digital intelligence into systems and daily decision-making,” said Dale Hearn, partner at ISG. “These investments are practical responses to major changes in technology, regulation and markets.”

U.S. companies with shale operations are intensifying the use of AI, advanced analytics and simulation tools to reduce cost per barrel and make wells more productive, the report says. Operators in the Permian Basin and Eagle Ford regions are applying data-driven models to optimize drilling accuracy, reservoir management and throughput. For most companies, the focus has shifted from new exploration to maximizing recovery from existing assets. These approaches also help enterprises shorten time to market and reduce nonproductive time.

Across the Americas, oil and gas enterprises are expanding cloud adoption and integrating IT and operational technology environments to improve visibility and control, ISG says. Cloud platforms and standardized data models enable more consistent workflows across upstream, midstream and downstream operations. In Mexico and Argentina, digital twins and predictive maintenance tools are helping mitigate risks in remote operations. Companies throughout the region are using GenAI for smarter workflows, faster decision-making and predictive capabilities.

Energy transition and decarbonization initiatives are reshaping enterprise investment priorities across the region, the report says. Brazilian companies are scaling biofuels using established ethanol and biodiesel infrastructure, while Canadian operators are investing in carbon capture and storage to reduce emissions from oil sands operations. Enterprises throughout the Americas are adopting emissions management, greenhouse gas tracking and AI-based optimization technologies. These efforts often reflect growing regulatory scrutiny and investor expectations concerning sustainability and transparency.

“Energy strategies differ by region, but the common theme is disciplined investment in technologies to improve efficiency while enabling decarbonization,” said Swadhin Pradhan, principal analyst, ISG Provider Lens Research, and lead author of the report. “Enterprises are aligning digital modernization with adaptability to remain competitive.”

The report also explores other trends in the Americas oil and gas industry, including rising cybersecurity risks and growing investments in workforce upskilling for expertise in AI, sustainability and remote field operations.

For more insights into the challenges faced by oil and gas enterprises in the Americas, along with ISG’s advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.

The 2025 ISG Provider Lens® Oil & Gas Industry — Services and Solutions report for the Americas evaluates the capabilities of 36 providers across four quadrants: AI and Cloud, Enterprise Asset Management, New Energy Services and Technology, Transformation and Consulting.

The report names Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, LTIMindtree, TCS and Wipro as Leaders in all four quadrants. It names Cognizant and Tech Mahindra as Leaders in three quadrants each. Birlasoft, Hitachi Digital Services, LTTS, NTT DATA and PwC are named as Leaders in two quadrants each. EY, KPMG and Quest Global are named as Leaders in one quadrant each.

In addition, Cognizant, Cyient, Kyndryl and LTTS are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from LTTS.

The 2025 ISG Provider Lens® Oil & Gas Industry — Services and Solutions report for the Americas is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Press Contacts:



Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

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