Enter a query in the search input above.

Your search: "{{ currentTerm }}"

No results found for your query.

How Safe is Your Information in Cloud-Based Software for OG Operators

How Safe is Your Information in Cloud-Based Software for OG Operators

Despite the advanced technologies that are used in the field, when it comes to internal operations, oil and gas companies typically suffer from disconnected and slow methods. The industry’s culture of risk aversion runs deep, as any leaks, environmental damage, and injuries or death prove catastrophic. This cautious attitude permeates all aspects of the business, even when vetting new software and programs.

For oil and gas companies, security is a top concern; one error or lost file can mean millions—or billions—lost in the field. Furthermore, companies operating in sensitive areas or reporting to regulatory bodies need absolute assurance that their data is safe and accurate to ensure compliance and meet auditing requirements.

This distrust represents a significant hurdle when it comes to cloud-based software solutions, which have become increasingly popular due to their ease of deployment and cost-effectiveness when compared to on-premise solutions. In fact, Prudence Research projects that the global cloud computing market will hit $1,614.10 billion by 2030 and grow at a CAGR of 17.43% from 2022 to 2030. Bearing this trend in mind, should oil and gas companies re-evaluate their hesitancy to begin relying more heavily on cloud-based solutions?

Cloud-based software offers enhanced security


Some oil and gas companies may feel reluctant to allow their data to be used in anything other than software that is deployed on-premise. After all, anything from field measurements to land titles/contracts to regulatory documentation could be uploaded and used within a solution that is not entirely under the company’s control. Often, companies can feel that doing so opens them up to greater risk and liability should something go wrong with their software provider.


However, cloud-based software generally offers better security measures than privately managed servers or applications. A provider of cloud-based software has a primary core business function of ensuring that its application is safe, robust, and useful enough for companies to choose it over perhaps more conventional methods. Any security breach would be catastrophic, and no software provider would risk an event like this happening. A cloud-based software provider would thus allocate more funding, more staff, and more strategy sessions to enhancing its platform to better meet maximum security measures than any individual IT department within a single oil and gas company could be able to do.

Cloud-based providers commit to regular updates

Similarly, on-premise software can quickly become out-of-date, as a company’s IT department—or a company’s individual employees—allow software updates to pile up, compromising the program’s security and putting data at risk. By choosing a cloud-based software provider, oil and gas companies can be assured that their software is regularly updated on the provider’s end. The risk of using an out-of-date version of a program is significantly decreased, as the software provider handles this responsibility directly and removes the burden—and capacity for error—associated with updating software from employees’ shoulders.

Cloud-based software relies on built-in firewalls

Every provider of cloud-based software will ensure that additional technologies are built into its program to provide even greater security. Most will incorporate firewalls to control traffic, prevent suspicious traffic from accessing the software, and ensure that data stays safely behind the firewall at all times. This measure further enhances security, protecting data from malware or viruses.

Security testing occurs much more frequently than with on-premise software

With on-premise software, security testing must occur either within a private IT department or the company must wait for its software provider to release an update—which must then of course must be installed by individual employees. However, because cloud-based software providers bear the burden of responsibility for the safety and security of its software and the data used within it, they much more regularly perform security testing both internally or potentially with outside security companies to ensure that data is not compromised.

Centralized data storage ensures data is safe and together

Finally, cloud-based software allows distributed teams to securely work together across time and space. With cloud-based software, all of the data is stored in one secure, auditable location, so all well measurements and details on ownership, contracts, acreage, expiration, and division orders are easy to access. Beyond merely ensuring data security and access, this makes reporting easier and enables ready compliance with various regulatory bodies—things that are of critical importance for oil and gas companies.

Cloud-based software is a gamechanger for oil and gas companies looking for greater data security, connectivity and accessibility. As such, experts anticipate that the industry will begin to take advantage. By 2030, the oil industry is expected to significantly increase spending on cloud computing solutions and advanced analytics to over $12 billion. By introducing cloud-based software into their stack, oil and gas companies can find themselves streamlining data and increasing efficiencies—without compromising the security and integrity of their data.

Comments? Thoughts? Feeback?

Let us know what you think! Shoot us your feedback.