Mentions of the internet of things (IoT) within the filings of companies in the oil and gas industry rose 35% between the second and third quarters of 2021.
In total, the frequency of sentences related to IoT between October 2020 and September 2021 was 49% higher than in 2016 when GlobalData, from which our data for this article is taken, first began to track the key issues referred to in company filings.
When companies in the oil and gas industry publish annual and quarterly reports, ESG reports, and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. IoT is one of these topics – companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.
To assess whether IoT is featuring more in the summaries and strategies of companies in the oil and gas industry, two measures were calculated. Firstly, we looked at the percentage of companies that have mentioned IoT at least once in filings during the past 12 months – this was 51%, compared to 30% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to IoT.
Of the 50 biggest employers in the oil and gas industry, Osaka Gas was the company that referred to IoT the most between October 2020 and September 2021. GlobalData identified 30 IoT-related sentences in the Japan-based company's filings – 0.7% of all sentences. ENN Energy mentioned IoT the second most – the issue was referred to in 0.6% of sentences in the company's filings. Other top employers with high IoT mentions included ENEOS, Reliance Industries, and Honeywell International.
Across all companies in the oil and gas industry, the filing published in the third quarter of 2021 which exhibited the greatest focus on IoT came from Lukoil. Of the document's 2,642 sentences, 14 (0.5%) referred to IoT.
This analysis provides an approximate indication of which companies are focusing on IoT and how important the issue is considered within the oil and gas industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning IoT more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into the internet of things have been successes or failures.
GlobalData also categorises IoT mentions by a series of subthemes. Of these subthemes, the most commonly referred to topic in the third quarter of 2021 was "drones", which made up 31% of all IoT subtheme mentions by companies in the oil and gas industry.