Posted: August 20, 2026
The oil and gas industry has rarely faced a year as defined by volatility as 2026. The disruption of the Strait of Hormuz and the supply shock that followed have pushed crude into the $80–100-per-barrel range, driven energy prices up by more than 20%, and roughly doubled the price volatility operators had grown used to in calmer periods. In an instant, energy security has shifted from an abstract policy debate to an immediate operational and financial priority — and the infrastructure that keeps energy flowing has never been under sharper scrutiny. For the midstream sector, this is a pivotal moment.
Pipelines are the critical arteries of the global energy system, and as supply from the Gulf is constrained, assets across North America, the North Sea, and Latin America are being pushed harder to fill the gap. Running closer to the limit raises the stakes on every hour of uptime. When supply is tight and prices are high, a unit of lost throughput carries a far greater financial penalty than it did even a year ago. At the same time, the conflict has been described as a "war across networks, supply chains and systems"— a stark reminder that operational resilience now depends as much on cyber and OT security as it does on steel and compression.
In this environment, digital transformation is no longer a discretionary efficiency play; it has become a core lever for protecting value and safeguarding critical infrastructure. By leveraging high-performance solutions such as AI, machine learning, and advanced analytics — underpinned by secure, centralized operational visibility — operators are unlocking new capabilities that optimize operations, predict potential issues, strengthen resilience, and improve decision-making when it matters most. Resilience, diversification, and security now sit alongside cost, efficiency, and emissions as equally important dimensions of operational value.
These themes, and the ones explored below, build on an insightful discussion featured on the Pipeliners Podcast, hosted by Russel Treat of Enersys Corporation and joined by AVEVA's HMI/SCADA business leaders Doug Warren and John Krajewski. Their pragmatic, step-by-step view of modernization is more relevant than ever. In a market this volatile, the cost of standing still has gone up. The episode originially aired in 2024, but the methodology remains just as sound today.
Breaking down silos to unlock potential
One of the key challenges in pipeline operations is the siloed nature of data and systems. In the podcast, Warren and Krajewski highlight how integrating disparate data sources can empower operators to make more informed decisions in real time. By breaking down these silos, companies can access a more holistic view of their operations, enabling quicker responses to potential issues, better compliance with regulatory requirements, and the ability to optimize performance across the entire value chain.
The role of advanced analytics and AI
The podcast also explores the role of advanced analytics and AI in driving operational value. These technologies allow operators to predict equipment failures, optimize maintenance schedules, and improve resource allocation. Krajewski explains how leveraging AI and machine learning models can lead to predictive insights that enhance safety and reduce downtime—key priorities for any pipeline operator.
Steps to digital modernization
For companies looking to embark on their digital transformation journey, the podcast offers actionable advice. Warren and Krajewski take a pragmatic approach to digital modernization, providing specific steps operators can take to see tangible benefits quickly and build momentum for larger-scale initiatives.
Throughout this podcast you’ll not only explore how the oil and gas industry is evolving but also how ever-advancing digital capabilities are becoming a key driver in success. The insights shared provide a valuable roadmap for operators looking to harness the power of technology to improve efficiency, safety, and sustainability.
This episode is a must-listen for anyone in the pipeline industry looking to stay ahead of the curve in operational excellence.
Related blog posts
Stay in the know: Keep up to date on the latest happenings around the industry.
