Experts discuss the digital transformation of the oil and gas industry

Digital is becoming the way to go. Photo by Towfiqu Photography, Getty Images

With the disruptive challenges the energy industry faces on a daily basis, the need for digitization has never been more apparent. In "Bits, Bytes, and Barrels: The Digital Transformation of Oil and Gas," authors Geoffrey Cann, retired partner at Deloitte Canada, and Rachael Goydan, Deloitte Consulting LLP managing director, analyze the current landscape for digital technologies in the energy business.

In this Q&A, we will get an exclusive peek into some of the key themes that Cann and Goydan discuss throughout their book, touching on the barriers to digitization and all that it can offer to the energy industry.

Amy Chronis, Houston managing partner, Deloitte LLP: What exactly is digital, and is the definition changing over time?

Rachael Goydan: Simply put, digital is comprised of three elements: data, analytics, and connectivity. It could be anything from a smartphone, computer, or car to a refrigerator or doorbell. Digital objects have the ability to generate data and do analytics and computations. They also have to be connected with other devices to be considered a digital object.

We have been seeing exponential growth over the last 5-10 years in terms of what digital is capable of, and what that means to the energy industry. Digital is constantly evolving, and its impact may even be different tomorrow. In oil and gas, there are now more ubiquitous forms of unstructured data being used, such as sounds, vibrations, or photographs. It has become relatively inexpensive to have computing power on a device and the accessibility of programming languages has grown.

AC: Digital has disrupted other industries, but is disruption possible in oil and gas?

Geoffrey Cann: There are many digital concepts that can disrupt business in oil and gas. Much like the cloud car and designer fuel, which allows consumers to pick their fuel origin, the use of artificial intelligence to interpret streaming data from cameras could introduce truly robotic eyes on oil and gas assets 24/7. Historically, the oil and gas industry has been change-averse, so the timing and size of the impact is expected to vary by sector.

Our research has found that technology suppliers, service providers, and retailers may be affected the most by digital disruption. Explorers and producers may be affected less, as their business is often already driven by data. The midstream segment has heavy assets running 24/7 that are hard to take offline, and they cannot add new technologies easily. The impact they feel will likely be less than tech companies.

In resource value, digital has already begun to disrupt. For example, some companies are using high-definition photography to take pictures of drilling cuttings, which are then pieced together via cloud using artificial intelligence and machine learning. These drilling cuttings can have one million times better resolution than with seismic.

AC: I've heard you speak about digital in oil and gas in the past, and you frequently say that digital isn't about the technology but about how people work. Could you give some examples here?

RG: Leaving digital to chance doesn't work. Companies may benefit from having information technology professionals bring expertise, cybersecurity, corporate infrastructure and assets, a help desk, virus detection and remediation, and so on. Companies may also benefit from having operational technology people, who have knowledge of the facilities, contributing a solid understanding of the sources of change resistance and how to address them. These groups will work together with the business. Some companies even have a separate digital team that helps them with change management, using a clean sheet of paper approach.

Companies also may need to recognize that there are different ways of working. Agile methods are how digital gets done versus the waterfall method. They are almost opposite ways of doing work with different speeds. Digital requires some companies to change the way they do things. Changes are to happen on a monthly, weekly, and even daily basis.

AC: Is it true that digital in oil and gas has as much potential as in other industries?

GC: Companies in upstream oil and gas are now being valued more on cashflow than traditional reserves valuation. At its heart, digital is about efficiency, which is top of mind for a lot of clients as well. To give the best return to investors, oil and gas companies may need to consider focusing on efficiency and productivity rather than focusing on reserves growth.

Oil and gas has the opportunity to tap into a key feature of the digital world: an ecosystem of resources that includes incubators, university labs, accelerators, and startup groups. Our research has shown companies in oil and gas are much less tapped into this new community of digital innovation. Because digital changes so rapidly, the industry may benefit from plugging into the existing ecosystem to take advantage of the skillsets and capabilities that are out there.

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This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

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Houston leads Texas with 7 new National Academy of Inventors senior members

top honor

The University of Houston is now home to seven new senior members of the National Academy of Inventors.

The distinction honors active faculty, scientists and administrators from NAI member institutions that have demonstrated innovation and produced technologies that have “brought, or aspire to bring, real impact on the welfare of society,” according to the NAI. The members have also succeeded in patents, licensing and commercialization, and educating and mentoring.

According to UH, its seven new members represent the largest group from any single Texas institution this year, bringing the university's total senior member count to 46.

UH faculty also represented three of Houston's four new senior members in 2025. Six Houstonians were also named to the NIA's class of fellows late last year.

“This recognition affirms what we see every day at the University of Houston—bold, collaborative innovation focused on improving lives," Ramanan Krishnamoorti, vice president of energy at UH, said in a news release. "Having seven faculty members named Senior Members reflects our momentum and a culture where discovery moves beyond the lab into solutions that strengthen communities and drive economic growth.”

UH’s new senior members include:

  • Haleh Ardebili, endowed professor of mechanical and aerospace engineering and assistant vice president for Entrepreneurship and Startup Ecosystem. Ardebili develops flexible lithium batteries and holds four patents
  • Vemuri Balakotaiah, distinguished university chair and professor of chemical and biomolecular engineering. Balakotaiah holds is patents, with five pending, and develops mathematical models for the clean energy research.
  • Jakoah Brgoch, professor of chemistry. Brgoch develops next-generation inorganic materials and holds four patents.
  • Jose L. Contreras-Vidal, distinguished professor in electrical and computer engineering and director of UH’s NSF neurotechnology research center. Conreras-Vidal develops brain-machine interface technologies. He holds five patents, with two technologies advancing through clinical trials.
  • Preethi Gunaratne, professor in the department of biology and biochemistry and director of the UH Sequencing Core in UH’s College of Natural Sciences and Mathematics. Gunaratne holds five patents in biology and energy technologies and has made significant large-scale genome discoveries.
  • Jae-Hyun Ryou, professor of mechanical and aerospace engineering. Ryou holds 13 patents and has develops innovative semiconductor materials and devices for flexible electronics.
  • Yingcai Zheng, professor in applied geophysics and director of the UH Rock Physics Lab. Zheng's work focuses on energy production, geothermal development and carbon management strategies. He holds two patents.

Other Texas institutions also had strong showings this year. Additional new Texas senior members from NAI institutions include:

Texas A&M University

  • Guillermo Aguilar
  • Stavros Kalafatis
  • Narendra Kumar
  • Heng Pan
  • Xingyong Song
  • Yubin Zhou

Texas State University

  • Bahram Asiabanpour
  • Martin Burtscher
  • Nihal Dharmasiri
  • Alexander Kornienko
  • Ted Lehr
  • Christopher Rhodes

The University of Texas at Arlington

  • Brian H. Dennis
  • Nicholas Gans
  • Frederick M. MacDonnell
  • Charles Philip Shelor
  • Liping Tang

The University of Texas at San Antonio

  • Robert De Lorenzo
  • Marc Feldman
  • Daohong Zhou

The University of Texas at El Paso

  • XiuJun Li
  • Yirong Lin
  • David Roberson

Texas Tech University Health Sciences Center

  • Thomas John Abbruscato
  • Annette Louise Sobel
  • Sanjay K. Srivastava

Texas Tech University

  • Gerardo Games
  • Dy Dinh Le

Baylor University

  • David Jack

The University of Texas Rio Grande Valley

  • Upal Roy

This year's class is the largest since the NAI launched its senior member recognition program in 2018. The new senior members come from 82 NAI institutions ad hoe more than over 2,000 U.S. patents. Accoring to the NAI, it has 945 senior members who hold more than 11,000 U.S. patents today.

“This year’s senior member class is a truly impressive cohort. These innovators come from a variety of fields and disciplines, translating their technologies into tangible impact,” Paul R. Sanberg, president of NAI, added in a news release. “I commend them on their incredible pursuits and I’m honored to welcome them to the Academy.”

The Senior Member Induction Ceremony will honor the 2026 class at NAI’s Annual Conference June 1-4 in Los Angeles.

Texas takes the No. 1 spot on new energy resilience report

Ranking It

A new report by mineral group Texas Royalty Brokers ranks Texas as the No. 1 most energy-resilient state.

The study focused on four main sources of electricity in hydroelectric dams, natural gas plants, nuclear reactors and petroleum facilities. Each state was given an Energy Resilience Score based on size and diversity of its power infrastructure, energy production and affordability for residents.

Texas earned a score of 71.3 on the report, outpacing much of the rest of the country. Pennsylvania came in at No. 2 with a score of 55.8, followed by New York (49.1) and California (48.4).

According to the report, Texas produces 11.7 percent of the country’s total energy, made possible by the state’s 141,000-megawatt power infrastructure—the largest in America.

Other key stats in the report for Texas included:

  • Per-capita consumption: 165,300 kWh per year
  • Per-capita expenditures: $5,130 annually
  • Total summer capacity: 141,200 megawatts

Despite recent failures in the ERCOT grid, including the 2021 power grid failure during Winter Storm Uri and continued power outages with climate events like 2024’s Hurricane Beryl that left2.7 million without power, Texas still was able to land No. 1 on an energy resilience list. Texas has had the most weather-related power outages in the country in recent years, with 210 events from 2000 to 2023, according to an analysis by the nonprofit Climate Central. It's also the only state in the lower 48 with no major connections to neighboring states' power grids.

Still, the report argues that “(Texas’ infrastructure) is enough to provide energy to 140 million homes. In total, Texas operates 732 power facilities with over 3,000 generators spread across the state, so a single failure can’t knock out the entire grid here.”

The report acknowledges that a potential problem for Texas will be meeting the demands of AI data centers. Eric Winegar, managing partner at Texas Royalty Brokers, warns that these projects consume large amounts of energy and water.

According to another Texas Royalty Brokers report, Texas has 17 GPU cluster sites across the state, which is more than any other region in the United States. GPUs are specialized chips that run AI models and perform calculations.

"Energy resilience is especially important in the age of AI. The data centers that these technologies use are popping up across America, and they consume huge amounts of electricity. Some estimates even suggest that AI could account for 8% of total U.S. power consumption by 2030,” Winegar commented in the report. “We see that Texas is attracting most of these new facilities because it already has the infrastructure to support them. But we think the state needs to keep expanding capacity to meet growing demand."

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This article originally appeared on EnergyCapitalHTX.com.

6+ can't-miss Houston business and innovation events in March

where to be

Editor's note: March brings the return of some of Houston’s signature innovation events, plus insightful talks and celebrations in honor of Women's History Month. Here’s what not to miss and how to register. Please note: this article may be updated to include additional event listings.

March 3-4 — Houston MedTech Rodeo

Head to Armadillo Palace for the annual Houston MedTech Rodeo. The casual, Texas-themed conference brings together 350 medtech professionals who come from over 10 countries and 15 states to highlight Houston's growing medtech ecosystem. The event will feature panel discussions, startup showcases, networking sessions—plus, armadillo races, mechanical bull riding and live country music.

The event begins March 3 at Armadillo Palace on Kirby Drive. Register here.

March 4 – Humans of Healthcare

Houston Methodist Center for Innovation will present its new quarterly speaker series, Humans of Healthcare. The series will feature a panel of experts who will share about their career paths and discuss the nuances of the health care industry. This month's session will focus on IT. The panel will be moderated by Houston Methodist's Director of Innovation Murat Uralkan.

The event is Wednesday, March 4, from 5-6 p.m. at the Ion. Register here.

March 5 — The Future of Women in STEM

Celebrate Women's History Month at SUPERGirls SHINE Foundation's The Future of Women in STEM event, presented in partnership with the Ion. The event will feature speakers and panelists, including Kalila Winters Hines, senior public affairs advisor for Holland & Knight; Dr. Natacha Chough, NASA Johnson Space Center Flight Surgeon; and Andrea Course, rocket scientist and founder of Course Investments.

The event is Thursday, March 5, from 8:30-10 a.m. at the Ion. Register here.

March 10-12 — World Hydrogen & Carbon Americas

S&P Global Energy brings together two leading events—Carbon Management Americas and World Hydrogen North America—to form a new must-attend event for those in the hydrogen and carbon industries. More than 800 senior leaders from across the energy value chain will attend this event featuring immersive roundtable discussions, hands-on training, real-world case studies and unparalleled networking opportunities.

This event begins March 10 at the Marriott Marquis Houston. Register here.

March 20 — Ideas to Impact Accelerator Graduation and Showcase

Join Impact Hub Houston as it celebrates its inaugural Ideas to Impact Accelerator cohort. The 16-week accelerator is designed to help early-stage entrepreneurs validate their business models, strengthen confidence and gain traction. Hear short pitches and network with founders and mentors.

The event is Friday, March 20, from noon-2 p.m. at the Ion. Register here.

March 23-27 — CERAWeek 2026

CERAWeek 2026 will focus on "Convergence and Competition: Energy, Technology and Geopolitics." The industry's foremost thought leaders will convene in Houston to cultivate relationships and exchange transformative ideas during the annual event. CERAWeek 2026 will explore breakthroughs, cross-industry connections and powerful partnerships that are accelerating the transformation of the global energy system. 2026 highlights include an appearance by tech magnate Bill Gates.

This event begins March 23. Register here.

March 24-25 — 2026 Energy Venture Day and Pitch Competition

The Energy Venture Day and Pitch Competition, co-hosted by the Rice Alliance, Ion, HETI and TEX-E, offers two days of exciting pitches from more than 40 global energy ventures that are transforming the industry. On Tuesday, March 24, you can attend a fast-paced pitch preview event at the Ion, followed by the official Pitch Competition at 1 pm on Wednesday, March 25, at the George R. Brown Convention Center.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event begins Monday, March 30. Register here.

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