Gartner Research

Hype Cycle for Oil and Gas, 2023

Published: 24 July 2023

Summary

Digital innovation at scale is essential to developing resiliency and surviving market volatility, fragmented geopolitics and energy transition. CIOs can use this Hype Cycle to understand which technologies to focus on in order to align their investments with strategic business goals.

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What You Need to Know

All sectors of oil and gas are rapidly pivoting their business strategy. Some pivots emphasize environmental performance — for example, upstream methane reduction, refinery conversion to biofuels, or new revenue from renewable power. Others focus on creating agility to sustain traditional hydrocarbon margins under future market conditions. Companies see digital investment as critical to achieving their goals.

There are plenty of options and a wide array of emerging technologies to choose from. High industry profits in 2022 have attracted new vendors. Unfortunately, technology selection in today’s environment is tricky as every digital investment raises complex trade-off

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Analysts:

Rich McAvey Simon Cushing

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The Hype Cycle: Understanding the pitfalls and opportunities of innovations

How does a Gartner Hype Cycle™ work?

A Gartner Hype Cycle provides an objective map that helps you understand the real risks and opportunities of innovation, so you can avoid adopting something too early, giving up too soon, adopting too late, or hanging on too long. Every Hype Cycle includes five phases:

The innovation trigger starts when an event, like a technological breakthrough or a product launch, gets people talking.

The peak of inflated expectations is when product usage increases, but there’s still more hype than proof that the innovation can deliver what you need.

The trough of disillusionment happens when the original excitement wears off and early adopters report performance issues and low ROI.

The slope of enlightenment occurs when early adopters see initial benefits and others start to understand how to adapt the innovation to their organizations.

The plateau of productivity marks the point at which more users see real-world benefits and the innovation goes mainstream.

The Hype Cycle is more than just a diagram. You also get:

Evidence-backed insight

Hype Cycles tap into deep research, surveys and conversations with technology suppliers and Gartner clients.

An analysis of objective and value

The y-axis measures expectations. The x-axis relates them to the proven value of that innovation over time.

A long-term view

It often takes between three and five years for an innovation to move through the Hype Cycle, but some fall off along the way.

Gartner Hype Cycle is just one of our many offerings.

We provide actionable, objective insight to help organizations make smarter, faster technology decisions to stay ahead of disruption and accelerate growth.

Pick the right provider with confidence

We work with you to select the best-fit provider to avoid the costly repercussions of a poor decision.

Align deal structures and optimize spend

We benchmark pricing against the market so you avoid unnecessary charges.

Reduce complexity and risk

We analyze contract terms and conditions to protect you against future price increases and unanticipated costs.

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