Impact of digital transformation on labor productivity in oil and gas extraction industry during well construction

Abstract

The need to implement remote online monitoring technology of drilling operations that produces positive effects on business processes and considerably improves the end-use efficiency of production systems is explored. The improvement of drilling efficiency provides an opportunity to increase cost-effectiveness of existing oil reserves and exploit deposits with hard-to-recover oil and gas reserves. The analysis presented in the article highlights that one of the most significant challenges faced by the sector's development deals with the deterioration of the Russian oil industry, caused by ongoing technology obsolescence and outmoded equipment. Oil and gas companies, which are systematically introducing digital technologies not just to address specific issues but to solve problems at every production stage, greatly increase their level of profitability; have significantly higher indicators of cost benefit, as well as a high level of competitiveness in the international energy market.