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AcctTwo Blog

Cloud Myth # 4: The Energy Industry is Not in The Cloud

energy-industry-in-cloud.jpgIf you've followed our blog, or heard us talk about cloud adoption in the energy sector, you've heard us say that energy companies are slow to adopt the cloud. It's become a kind of conventional wisdom, and something we just take for granted. But we started to wonder if it's actually true or not.

After a little research, it turns out it's actually more complicated than that, though information about cloud operations is often difficult to find. Piggybacking on the theme from our recent post on cloud myths let me give you some examples of energy companies with operations and information in the cloud.  

The largest energy companies have their operations in the cloud. Amongst the majors, Shell is using cloud services to analyze geological data under a collaborative agreement with Hewlett-Packard (1) and BP is rolling out 100 cloud projects (2). The fourth largest oil company in the world (Total S.A.) is using the cloud to manage operations of Floating Production and Storage Operations (FPSOs) (3) and Chevron is managing environmental data using a cloud solution from Locus Energy (4).

Smaller energy companies, sometimes called independent oil companies such as Tullow and Continental Resources, are using the cloud to send oil well data, maps and information on fracking operations in remote areas securely to employees in field and head offices (4).  And power generating companies such as Talen Energy insist they could no longer operate without the cloud (5).

Service companies like Halliburton (6) and Weatherford (7) are moving to the cloud to streamline their oil and gas businesses, and GE Oil and Gas is pioneering the digital transformation to the cloud of its parent company (8). Cameron and Baker Hughes are following suit.

Energy service companies are flocking to the cloud. Locus Energy is using the cloud to monitor 60,000 photo-voltaic systems and Direct Energy Solar, Select Energy Services and Zephyr Oilfield Services customer service shines through using Salesforce in the cloud.

So there you have it.  In some measure every company in the energy industry is connected to the cloud.  PC Magazine said in May 2016, “In the simplest terms, cloud computing means storing and accessing data and programs over the Internet.” What company is not connected to the internet, if only for finding information? Gartner Inc., an IT research company says “By 2020, a Corporate "No-Cloud" Policy Will Be as Rare as a "No-Internet" Policy Is Today.”

The last word goes to Rightscale Consulting who, earlier this year, surveyed 1,060 IT professionals from large and small US companies and found that 95% of the people responding to the survey are using the cloud.

It’s a quiet revolution, and it’s already happening.  Energy companies are in the cloud but they are not making a lot of noise about it. Energy companies understand the efficiencies that accrue from operating in the cloud and are using those efficiencies to improve their customer service and bottom line.

Other sectors like retail, hospitality, faith-based organizations, non-profits and more are embracing the cloud for accounting, customer relationship management, human resources, and payroll.

Questions? Contact us and we can tell you about the many advantages that Intacct cloud-based accounting solution can bring to your company.

Topics: Oil and Gas Industry Energy and Industrial cloud adoption