IoT Agenda

May 10 2019   12:30PM GMT

Is IoT creating a more lucrative oil and gas industry?

Sanjeev Verma Profile: Sanjeev Verma

Tags:
asset tracking
end-to-end IoT
Enterprise IoT
IIoT
iot
IoT applications
IoT data
IoT use cases
IoT verticals
Predictive maintenance

Every industry has its own set of challenges to overcome. In 2014, the oil and gas market hit its lowest point. Since 2016, however, the industry has successfully recovered from the challenges that were bogging it down. Praise must be given to the concrete potential of state-of-the-art technologies and strategies.

One of the main contributing factors which led to improvements is IoT. Through the successful implementation of automation, machine learning, AI and more, IoT technologies for oil ¬†and gas have successfully bridged the gap between the industry’s low and current status.

Improving safety measures and profit, along with enabling asset tracking and predictive maintenance, IoT has uplifted underperforming areas of the oil and gas industry. As we move forward, smart IoT strategies help hone the edges while withstanding increasing market stress coming from geopolitical and climate changes.

After much research and analysis, IoT has motivated the oil and gas industry to be more accurate, efficient, influential and competitive. This industry lost billions of dollars due to underperformance and nonproductivity — prominent errors that slowly drained its strength. But now, by depending on IoT, the oil and gas industry has managed to unclog its potential and achieve an improved profit.

Let’s explore the IoT technologies behind the current success in the oil and gas industry.

Predictive and preventive maintenance

Oil and gas activities require regular monitoring; one wrong move can cause irreversible damage within a matter of a few milliseconds. Facilities equipped with remote services can react to challenges through predictive maintenance. Machines require regular supervision to assess wear and tear. Predictive maintenance offers insight on the current status of a specific equipment part, and know in advance what needs to be fixed, replaced or shut down. IoT sensors on the machines accumulate data that can alert organizations of equipment failure, wasted money, loss of manual working hours and more. With predictive maintenance data, big differences can be manifested more easily, thus separating required activities from the unnecessary ones. This reflects well on profit margins — a sure indicator of the improvements and optimized execution of plans.

Asset tracking and monitoring

The oil and gas industry experiences constant pressure to improve safety and operational processes, and faces prominent price volatility. In order to stay prepared, organizations are spending more time analyzing their investments and internal operations to get a clear idea where possible and practical reductions or changes can be made that will not hamper the overall business while also encouraging asset utilization.

Asset management can significantly influence operational performance due to its ability to improve productivity levels. Optimization makes production more predictable with asset management. When different organizations want to transform and digitize their operations, the smart integration of assets into one unit creates a strong base. This can help, for example, monitor multiple wells or sites simultaneously.

Improve data management

Some oil and gas technologies are outdated and thus have motivated the industry to redesign with digital in mind. Redesigning will help the industry match the pace and creation of the newly connected technologies and improved data collection.

True transformation happens when efficient, safe, effective and appropriate practices take place. With connected devices, a great deal of data can be collected and accessed. Integrating this data into new technologies and processes provides more insights and further improves processes.

Health and safety

The oil and gas industry has witnessed several accidents due to unpredictable and hazardous events. Hazardous working environments on oil rigs and at gas plants will function better after adopting IoT systems that enable automated remote monitoring. When less manual and more automatic functioning is involved, fewer health and safety risks occur. IoT can heighten these possibilities and provide a superior level of safety to workers and people in the community.

Conclusion

Taking proper action in real time with IoT applications enables improved operational efficiency in oil and gas. The industry is segmented and has various streams that can be further supported by IoT applications and deployments. All these can be monitored across an ecosystem that is a combination of upstream, midstream and downstream players.

One factor that cannot be overlooked is that the oil and gas industry is extremely asset-intensive, making it a prime candidate for IoT asset tracking and predictive maintenance.

With IoT, the global oil and gas can achieve a competitive edge while unlocking several gates of growth and expansion within a noticeable short span of time.

All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.

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