Tech and energy are teaming up, creating a market that could grow 500% in the next 5 years
- As oil prices stay depressed, energy companies are increasingly turning toward big tech for help in streamlining operations and cutting costs.
- Barclays said that the last 12 months have seen a “dramatic shift” in partnership adoption, with numerous announcements that are just “early signs of things to come.”
- The firm estimates that the oil-focused digital services industry will grow from less than $5 billion today to more than $30 billion annually over the next five years in the upstream market alone, leading to $150 billion in annual savings for oil producers.
- A range of companies could benefit, including oil producers Exxon and Chevron, data services providers Microsoft and Amazon, as well as oilfield services companies Schlumberger and Baker Hughes.