The Future of Oil and Gas: Balancing Profit Pressures, Global Uncertainties, and Net Zero Goals

After the record-breaking profits of 2022, the Oil and Gas industry experienced a notable—though far from catastrophic—pullback in 2023. Prices stabilized through 2024, giving the sector a period of relative balance. In 2025, the Oil and Gas industry once again finds itself navigating a complex and transformative period shaped by global energy transition pressures, geopolitical instability, and rapidly evolving market dynamics. Demand growth is losing momentum and is projected to plateau later in the decade, while digital investment priorities have shifted decisively toward AI, layered on top of enduring focus areas like Asset Performance Management (APM), cybersecurity, data analytics, and cloud.

This is particularly critical since the industry has been faced with the tough challenge to find the right balance between sustainability, reliability and affordability—the energy trilemma, a term referenced by the World Energy Council.

Oil and Gas companies remain central to meeting global energy demand, but the challenge has shifted from simply delivering fuels to delivering them reliably, profitably, and with demonstrable progress toward net zero goals. The industry is under mounting pressure to cut methane emissions, comply with new carbon pricing mechanisms, and selectively scale carbon capture projects—all while navigating price volatility.

Additionally, many major players have begun repositioning themselves as broader “energy” companies, committing billions in capital expenditure toward renewable energy, albeit this represents only a fraction of overall budgets compared to traditional oil and gas activities. With structural challenges such as aging infrastructure, skilled labor shortages, and scrutiny over environmental, social, and governance (ESG) performance; digital transformation is no longer optional. Companies are leaning on AI-driven analytics, real-time emissions monitoring, and asset performance software to reduce costs, improve reliability, and verify sustainability outcomes.

Among the most influential forces shaping the industry's future are decarbonization, digitalization, and diversification—the "3Ds" that are redefining how Oil and Gas businesses operate and compete.

Across several 2025 surveys, artificial intelligence and machine learning (AI/ML) leads CIO tech priorities, while cybersecurity, data/analytics, and cloud remain foundational. Budgets are still expanding, but boards are demanding provable ROI tied to production, maintenance, and emissions outcomes—not just pilots. According to a recent State of the CIO report, 2025, 80% of CIOs are leading efforts to research and evaluate AI products within their firms while 42% say AI/ML is a major investment priority. Similarly, another study from Deloitte states that Generative AI has become a key driver of CIO strategies with investments in data & analytics, cloud modernization, and cybersecurity being central to delivering both innovation and operational stability.

And then there is a continued focus on operational excellence using asset management software. According to Verdantix, industrial asset management (IAM) software spend from Oil and Gas is forecast to grow at a CAGR of 16%, reaching $5 billion in 2030. In addition to maximizing overall asset performance and reliability, asset management software can now also help organizations meet their net zero goals. As the industry aims to reduce methane emissions by over 75% by 2030, a holistic solution that can detect leaks and catches early whilst showing sustained efficiency improvements to operations is the need of the hour.

Based on the market trends and industry challenges, here are the top digital priorities for the Oil and Gas Industry:

Here is a good moment to pause and think of your company’s strategy and the areas you plan to invest more or reduce investment. Do they support the overall strategy and growth of your organization? Which of the technologies above are most relevant to your company and why? Do you have a set budget allocated for those investments?

GE Vernova is partnering with Oil and Gas companies across the world to find the best solutions to successfully navigate the energy transition and achieve net zero. The most critical path for this success is digitalization of operations. Software designed to focus on asset and operations as well as power orchestrations, plays a vital role in helping improve performance and enable more reliable, affordable, and viable energy. Whether it’s improving asset reliability and availability (GE Vernova’s APM suite) or using AI and computer vision to reduce inspection cycles (Autonomous Inspection) or an automated emission data collection and validation platform (CERius™) – we’ve got you covered!

GE Vernova customers are already adopting digital solutions that can substantially cut fugitive emissions of CO2 and methane (CH4) – both powerful greenhouse gases. Use of Asset Performance Management (APM) software, for example, improves maintenance routines to reduce intermittent flaring and improve leak detection and repair (LDAR) to reduce methane leaks. These changes alone have the potential to curb 62% of all emissions across upstream, midstream, and downstream operations.

France-based TotalEnergies hasn’t recorded a single unanticipated failure of critical production assets since 2013, when it implemented predictive analytics technologies. The center focuses on four key areas: power generation, gas compression, water injection, and crude oil export. The monitoring operation across these four areas is extensive, with 30,000 sensors monitoring 260 shaft lines and 540 pieces of equipment. Data is sampled every 10 minutes to limit the burden on data storage without impacting analysis and effectiveness.

In Argentina, state-owned oil company YPF is extending deployment of monitoring and optimization software to approximately 30,000 assets, encompassing rotating, instrumentation, and electrical equipment. The move is allowing technical knowledge transfer across numerous sites in remote areas of the South American country.

The Oil and Gas industry continues to remain a cornerstone of the global energy system, supplying over half of the world’s energy needs. Navigating uncertainty while maintaining energy security in the Oil and Gas sector requires strategic foresight, diversification of sources, and a reliant infrastructure. Oil and Gas companies must balance short-term energy demands with long-term sustainability goals, often by investing in cleaner technologies and reducing emissions. Digital transformation is reshaping operations and still very much a focal point for several organizations. Investments in AI and digital platforms will continue to help end users improve efficiency, safety, and emissions monitoring. While the path to decarbonization is complex, shareholder pressure coupled with evolving consumer expectations will force companies to adapt quickly or risk falling behind.