September 16, 2025 • 13 mins
How can oil and gas leaders achieve net-zero while safeguarding profitability? In this episode of Energy Transition Talks, CGI’s Frank Schmidt and Angelina Bakshi explore the digital enablers—AI, cloud, digital twins, smart energy systems, and LNG innovation—reshaping the sector. Learn how these technologies reduce emissions, improve efficiency, and unlock new business value. A must-listen for executives driving transformation in the energy industry.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Angelina Bakshi (00:05):
Welcome and thanks for joining our Energy
Transition Talks.
On today's episode, we aregoing to be talking about
accelerating net zero digitalpathways that deliver return on
investments and cost savings.
My name is Angelina Bakshi andI am a business consultant with
CGI, located in Western Canada,and it's a pleasure for me to
(00:28):
introduce my colleague today,frank.
Frank Schmidt (00:31):
And setting the scene.
My name is Frank Schmid, as yourightly said, vice President
for the Global Energy Sectorwithin CGI and, from that
perspective, supporting one ofour largest clients that we have
for over 30 years in the oiland gas sector, and also support
several other energy and oiland gas clients around the globe
(00:51):
.
Angelina Bakshi (00:52):
Great Well, really excited to have you on
the podcast today.
I think we're going to betalking about net zero,
investing in low carboninfrastructure and integrating
energy systems, so we're reallyabout you know what are the
digital pathways that deliverreturn on investments and cost
savings in regards toaccelerating to net zero, topic
(01:16):
that many oil and gas companiesaround the world are grappling
with, curious about gettingdifferent types of pressures
about.
So I guess one of the firstquestions right off the bat is
what's driving the digital shift?
Frank Schmidt (01:29):
Yeah, if you talk about the digital moves and
reduction of costs, we see a fewthings happening.
The first is the migration topublic cloud platforms and if
you perform a migration, you seethat we can reduce 6% on the
(01:50):
energy consumption, and evenover 90% when you compare it
towards a traditional datacenter usage.
Another mean that you see isAI-powered predictive
maintenance, so using AI toanticipate equipment failures,
for instance.
(02:10):
That reduces downtime, energywaste and unnecessary resource
use.
Another element that you see isthe use of smart energy systems
, so, for instance, usingsensors and analytics to
optimize the energy usage inreal time, which lowers cost and
(02:32):
carbon footprints.
And the last one I would liketo call is digital workflows and
, in particular, cgi, when itcomes to our oil and gas clients
, is a long-term partner in thesubservice and well space, where
you traditionally havegeoscience and engineering
(02:54):
specialisms, and we can supportthem faster by using, for
instance, low-code platforms anddigitalization of the workflows
, and that's what we do forseveral of our clients.
Angelina Bakshi (03:10):
A very cool, very interesting time in the
industry.
So how are leaders moving from,you know, compliance to
opportunity?
Some things are maybe being,you know, forced upon them.
Some things they're doingbecause they see the opportunity
.
Yeah, how are we moving around?
Frank Schmidt (03:30):
I see there that's a good question and it's
really relevant.
I see two main drivers.
One is the integration of ESGoperating models.
If you look at the ESG goals,they are more and more embedded
into budgeting, for instance,product development, performance
(03:52):
metrics across departments.
And another driver I see isthat leaders are moving indeed
also to the value side and useESG as an innovation tool and a
brand equity.
Think, for instance, aboutbiodegradable packaging or
(04:15):
circular business models.
That will enhance yourreputation as a company and it
will also attract new talent andinvestors to your company.
So, in short, esg is becomingnot only a source of work, but
more a source of a competitiveadvantage, and not just
(04:37):
compliance.
Angelina Bakshi (04:39):
Where do you think along the value chain, are
the fastest return oninvestment opportunities?
Frank Schmidt (04:44):
Well, you see a lot, but if I zoom in to where
currently the global oil and gasmarket is focusing, let's take
LNG as an example.
Lng is often seen as a bridgeor an intermediate source fuel
in the energy transition andoffers several high return on
(05:06):
investment opportunities acrossthe value chain.
And let me take you through acouple of them.
The first one I would like tomention is waste heat recovery.
So in the value chain, you seea lot of focus on LNG.
So a lot of oil and gascompanies currently are focusing
on LNG.
(05:28):
And LNG is seen, by the way, asa bridge, an intermediate
source of fuel in the energytransition, and it offers
therefore high return oninvestment because it's an
integral part of our energydemand.
It's an integral part of ourenergy demand.
The first thing I would like tomention in the LNG side is waste
(05:49):
heat recovery.
So capturing and reusing heatduring liquefaction improves the
energy efficiency and lowersoperational costs.
A second one in the LNG area isrenewable integration.
For instance, if you use solaror wind to power an LNG facility
(06:09):
, you will reduce carbonfootprint and align with
regulatory incentive.
And the last technology thatyou see in the sector is digital
.
Twin technology in the sectoris digital twin technology, so
with that you can simulate LNGoperations, which helps you to
identify inefficiencies andoptimize the performance in real
(06:30):
time.
Angelina Bakshi (06:32):
Very interesting and actually just
you know, you mentioned aboutthe efficiencies in real time.
Kind of takes me into thedomain of how does AI and data
and cloud solutions generatequantifiable measurements and
impact for these decarbonizationprojects and intermediate
(06:52):
renewable technologies?
Frank Schmidt (06:55):
Absolutely.
It's really taking a boost thelast year, so take, for instance
, a boost the last year.
So take, for instance, cloud.
If you migrate your ITinfrastructure to cloud data
centers and, in addition,powered by renewables, you can
cut IT-related emissions by over90%.
(07:15):
If you take, for instance, aiand machine learning, the
tooling you there have willoptimize energy use, predict
equipment failure, for instance,and streamline operations, and
you can uncover up to 40% ofemissions reductions if you use
(07:37):
AI and machine learning.
Angelina Bakshi (07:40):
So you're saying that this both cuts the
emissions, but I'm hearing fromyou that we're also seeing some
operating cost optimization oreven potential capital
investments.
Is that correct?
Absolutely.
Or explain a little bit moreabout what are you seeing from
use cases that you've seen sofar.
Frank Schmidt (07:59):
Yeah, if you look at the OPEX, for instance, side
and the emission cut side ofthings, for instance, predictive
maintenance.
So the use of IoT sensorswithin assets and within the
field and overlaying that withAI models, you can forecast
equipment failures much better.
That minimizes your downtimeand that automatically reduces
(08:24):
your OPEX and also thereliability of an asset, and
reliability and security in oiland gas is a major driver.
An other one I see is smartgrid optimization.
The use of AI-driven gridmanagement, for instance,
improves your load balancing andreduces outage, which enhances
(08:48):
your energy efficiency usage andthat translates into lower
emissions and operational costs.
Angelina Bakshi (08:56):
Really interesting stuff that's
happening.
So I guess the question thatremains is what's holding oil
and gas companies back?
The question that remains is.
Frank Schmidt (09:04):
It's what's holding oil and gas companies
back.
I would say I would like tomention four main blockers, main
themes, if you wish, I think.
First of all, institutionalsilos, and what I mean by that
is that different parts of theenergy systems, for instance,
grid operators, regulators,utilities they operate under
(09:27):
fragmented authorities.
That's, I think, the maindriver.
The second one I would like tomention is system complexity.
If you look at decarbonizationin the system, it's involving
infrastructure, supply change,social systems, and the lack of
(09:49):
integrated planning tools andreal-time feedback loops makes
it very hard in that ecosystemto optimize across sectors.
A third one is obviously veryimportant nowadays is political
polarization, so climatepolicies face uneven support
(10:11):
across regions, delayingadoption and creating
uncertainty for investors andplanners.
And the last one that I seewithin our client set is also
skill gap.
So if I look at many of ourenergy clients, they lack the
technical expertise to implementand, in principle, also at
(10:34):
skill.
Clean technology andsustainability roles often
require cross-disciplinaryknowledge engineering, data
science which is in short supplycurrently.
Angelina Bakshi (10:49):
Those are some significant barriers and areas
to try and tackle for anyorganization.
So if you had to take a stepback and say OK, within the next
three to five years, whichreally in the oil and gas
timeline is fairly short, it'sreally in the near term what are
the areas that could bestbalance cost control and
(11:11):
decarbonization impact in youropinion, Like where should a
company start Energy companieswith mature AI strategies.
Frank Schmidt (11:25):
They are doubling down on automation to cut OPEX
and boost productivity, evenamid the economic uncertainty
that we face today.
Another important one is theuse of digital twins.
These virtual models ofoperations, for instance within
LNG terminals, grids, rigs,buildings allow for real-time
(11:49):
monitoring, emissions modelingand scenario planning, and that
enables smarter, lower-costdecisions.
Another one that's more out ofthe real technology and IT stack
is how do you source so smartsourcing and vendor
(12:09):
consolidation Also, that is, ifyou infuse that with AI and
supply chain optimization, amean to reduce waste and improve
resilience sense you also seeglobally, by the way, oil and
(12:30):
gas companies partner to sharerisk and to share investment on
the long term.
And the last one I would liketo mention is the integration of
esg platforms, where you seethat cloud-based systems for
tracking, for instance, scopeone, two and three, emissions
and compliance will become thestandard, and that reduces
reporting costs and improvestransparency.
Angelina Bakshi (12:53):
I think that concludes our time today.
Really appreciate having you onthis podcast and thanks so much
.
Frank Schmidt (13:01):
Many thanks for having me and have a great rest
of your day.
Welcome and thanks for joining our Energy
Transition Talks.
On today's episode, we aregoing to be talking about
accelerating net zero digitalpathways that deliver return on
investments and cost savings.
My name is Angelina Bakshi andI am a business consultant with
CGI, located in Western Canada,and it's a pleasure for me to
(00:28):
introduce my colleague today,frank.
Frank Schmidt (00:31):
And setting the scene.
My name is Frank Schmid, as yourightly said, vice President
for the Global Energy Sectorwithin CGI and, from that
perspective, supporting one ofour largest clients that we have
for over 30 years in the oiland gas sector, and also support
several other energy and oiland gas clients around the globe
(00:51):
.
Angelina Bakshi (00:52):
Great Well, really excited to have you on
the podcast today.
I think we're going to betalking about net zero,
investing in low carboninfrastructure and integrating
energy systems, so we're reallyabout you know what are the
digital pathways that deliverreturn on investments and cost
savings in regards toaccelerating to net zero, topic
(01:16):
that many oil and gas companiesaround the world are grappling
with, curious about gettingdifferent types of pressures
about.
So I guess one of the firstquestions right off the bat is
what's driving the digital shift?
Frank Schmidt (01:29):
Yeah, if you talk about the digital moves and
reduction of costs, we see a fewthings happening.
The first is the migration topublic cloud platforms and if
you perform a migration, you seethat we can reduce 6% on the
(01:50):
energy consumption, and evenover 90% when you compare it
towards a traditional datacenter usage.
Another mean that you see isAI-powered predictive
maintenance, so using AI toanticipate equipment failures,
for instance.
(02:10):
That reduces downtime, energywaste and unnecessary resource
use.
Another element that you see isthe use of smart energy systems
, so, for instance, usingsensors and analytics to
optimize the energy usage inreal time, which lowers cost and
(02:32):
carbon footprints.
And the last one I would liketo call is digital workflows and
, in particular, cgi, when itcomes to our oil and gas clients
, is a long-term partner in thesubservice and well space, where
you traditionally havegeoscience and engineering
(02:54):
specialisms, and we can supportthem faster by using, for
instance, low-code platforms anddigitalization of the workflows
, and that's what we do forseveral of our clients.
Angelina Bakshi (03:10):
A very cool, very interesting time in the
industry.
So how are leaders moving from,you know, compliance to
opportunity?
Some things are maybe being,you know, forced upon them.
Some things they're doingbecause they see the opportunity
.
Yeah, how are we moving around?
Frank Schmidt (03:30):
I see there that's a good question and it's
really relevant.
I see two main drivers.
One is the integration of ESGoperating models.
If you look at the ESG goals,they are more and more embedded
into budgeting, for instance,product development, performance
(03:52):
metrics across departments.
And another driver I see isthat leaders are moving indeed
also to the value side and useESG as an innovation tool and a
brand equity.
Think, for instance, aboutbiodegradable packaging or
(04:15):
circular business models.
That will enhance yourreputation as a company and it
will also attract new talent andinvestors to your company.
So, in short, esg is becomingnot only a source of work, but
more a source of a competitiveadvantage, and not just
(04:37):
compliance.
Angelina Bakshi (04:39):
Where do you think along the value chain, are
the fastest return oninvestment opportunities?
Frank Schmidt (04:44):
Well, you see a lot, but if I zoom in to where
currently the global oil and gasmarket is focusing, let's take
LNG as an example.
Lng is often seen as a bridgeor an intermediate source fuel
in the energy transition andoffers several high return on
(05:06):
investment opportunities acrossthe value chain.
And let me take you through acouple of them.
The first one I would like tomention is waste heat recovery.
So in the value chain, you seea lot of focus on LNG.
So a lot of oil and gascompanies currently are focusing
on LNG.
(05:28):
And LNG is seen, by the way, asa bridge, an intermediate
source of fuel in the energytransition, and it offers
therefore high return oninvestment because it's an
integral part of our energydemand.
It's an integral part of ourenergy demand.
The first thing I would like tomention in the LNG side is waste
(05:49):
heat recovery.
So capturing and reusing heatduring liquefaction improves the
energy efficiency and lowersoperational costs.
A second one in the LNG area isrenewable integration.
For instance, if you use solaror wind to power an LNG facility
(06:09):
, you will reduce carbonfootprint and align with
regulatory incentive.
And the last technology thatyou see in the sector is digital
.
Twin technology in the sectoris digital twin technology, so
with that you can simulate LNGoperations, which helps you to
identify inefficiencies andoptimize the performance in real
(06:30):
time.
Angelina Bakshi (06:32):
Very interesting and actually just
you know, you mentioned aboutthe efficiencies in real time.
Kind of takes me into thedomain of how does AI and data
and cloud solutions generatequantifiable measurements and
impact for these decarbonizationprojects and intermediate
(06:52):
renewable technologies?
Frank Schmidt (06:55):
Absolutely.
It's really taking a boost thelast year, so take, for instance
, a boost the last year.
So take, for instance, cloud.
If you migrate your ITinfrastructure to cloud data
centers and, in addition,powered by renewables, you can
cut IT-related emissions by over90%.
(07:15):
If you take, for instance, aiand machine learning, the
tooling you there have willoptimize energy use, predict
equipment failure, for instance,and streamline operations, and
you can uncover up to 40% ofemissions reductions if you use
(07:37):
AI and machine learning.
Angelina Bakshi (07:40):
So you're saying that this both cuts the
emissions, but I'm hearing fromyou that we're also seeing some
operating cost optimization oreven potential capital
investments.
Is that correct?
Absolutely.
Or explain a little bit moreabout what are you seeing from
use cases that you've seen sofar.
Frank Schmidt (07:59):
Yeah, if you look at the OPEX, for instance, side
and the emission cut side ofthings, for instance, predictive
maintenance.
So the use of IoT sensorswithin assets and within the
field and overlaying that withAI models, you can forecast
equipment failures much better.
That minimizes your downtimeand that automatically reduces
(08:24):
your OPEX and also thereliability of an asset, and
reliability and security in oiland gas is a major driver.
An other one I see is smartgrid optimization.
The use of AI-driven gridmanagement, for instance,
improves your load balancing andreduces outage, which enhances
(08:48):
your energy efficiency usage andthat translates into lower
emissions and operational costs.
Angelina Bakshi (08:56):
Really interesting stuff that's
happening.
So I guess the question thatremains is what's holding oil
and gas companies back?
The question that remains is.
Frank Schmidt (09:04):
It's what's holding oil and gas companies
back.
I would say I would like tomention four main blockers, main
themes, if you wish, I think.
First of all, institutionalsilos, and what I mean by that
is that different parts of theenergy systems, for instance,
grid operators, regulators,utilities they operate under
(09:27):
fragmented authorities.
That's, I think, the maindriver.
The second one I would like tomention is system complexity.
If you look at decarbonizationin the system, it's involving
infrastructure, supply change,social systems, and the lack of
(09:49):
integrated planning tools andreal-time feedback loops makes
it very hard in that ecosystemto optimize across sectors.
A third one is obviously veryimportant nowadays is political
polarization, so climatepolicies face uneven support
(10:11):
across regions, delayingadoption and creating
uncertainty for investors andplanners.
And the last one that I seewithin our client set is also
skill gap.
So if I look at many of ourenergy clients, they lack the
technical expertise to implementand, in principle, also at
(10:34):
skill.
Clean technology andsustainability roles often
require cross-disciplinaryknowledge engineering, data
science which is in short supplycurrently.
Angelina Bakshi (10:49):
Those are some significant barriers and areas
to try and tackle for anyorganization.
So if you had to take a stepback and say OK, within the next
three to five years, whichreally in the oil and gas
timeline is fairly short, it'sreally in the near term what are
the areas that could bestbalance cost control and
(11:11):
decarbonization impact in youropinion, Like where should a
company start Energy companieswith mature AI strategies.
Frank Schmidt (11:25):
They are doubling down on automation to cut OPEX
and boost productivity, evenamid the economic uncertainty
that we face today.
Another important one is theuse of digital twins.
These virtual models ofoperations, for instance within
LNG terminals, grids, rigs,buildings allow for real-time
(11:49):
monitoring, emissions modelingand scenario planning, and that
enables smarter, lower-costdecisions.
Another one that's more out ofthe real technology and IT stack
is how do you source so smartsourcing and vendor
(12:09):
consolidation Also, that is, ifyou infuse that with AI and
supply chain optimization, amean to reduce waste and improve
resilience sense you also seeglobally, by the way, oil and
(12:30):
gas companies partner to sharerisk and to share investment on
the long term.
And the last one I would liketo mention is the integration of
esg platforms, where you seethat cloud-based systems for
tracking, for instance, scopeone, two and three, emissions
and compliance will become thestandard, and that reduces
reporting costs and improvestransparency.
Angelina Bakshi (12:53):
I think that concludes our time today.
Really appreciate having you onthis podcast and thanks so much
.
Frank Schmidt (13:01):
Many thanks for having me and have a great rest
of your day.
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