Hybrid Framework for Investigating Digital Transformation Barriers in the Oil and Gas Sector

Abstract

The oil and gas (O&G) sector depends on information analysis, making digital transformation vital. Industry-specific factors like environmental, regulatory, operational, and security challenges shape its tech adoption. This paper identifies and examines the barriers and drivers of digital transformation in O&G through a literature review and expert insights, leading to a questionnaire assessment. Interpretive Structural Modeling (ISM) was employed to create a structural model that illustrates the interactions between these barriers, helping experts understand how to achieve digitization within the industry. The questionnaire analysis identified the key barriers based on their RII values: “Experiments requiring significant time for validation of new technologies”, “Technical complexities of new technologies”, “Security concerns”, “Insufficient strategies”, and “Organizational culture and resistance to change”. The ISM indicated that the “Technical complexities of new technologies” and the “Lack of readily deployable technologies” are the most influential barriers. Addressing these is crucial for O&G companies to unlock digitalization potential.