Internet of Things in Oil & Gas
Internet of Things (IoT) is the future of the oil and gas industry. As the network of devices, sensors and software brings about change in the operational efficiency of our clients value chain, the oilfield is lagging behind.
The Internet of Things (IoT) in the oil & gas industry is the network of physical objects connected to the Internet. Wearable devices, vehicles, equipment, buildings, and just about any other thing can be embedded with electronics, software, sensors, and network connectivity.
The ability to transfer data without requiring human interaction enables previously unprecedented amounts of data to be collected and exchanged with other devices, or through a central platform. Increasingly, forward-thinking oil & gas organizations are focusing their IoT initiatives less on underlying sensors, devices, and “smart” things and more on developing bold approaches for managing data, leveraging “brownfield” IoT infrastructure, and developing new business models.
Oil and gas have been facing challenges, largely attributed to the antiquated and inefficient approach that many companies take to maintain assets and collect data.
Our objective is to help revolutionize the industry by creating and deploying lean value chain across the industry. The results can be reflected in several metrics and benchmarks.
The EFFORT Energy IoT team are happy to implement our various proprietary products and services to help drive superior value for our clients and their portfolios.
These could impact the overall performance of their assets in a variety of ways.
Improved Operational Efficiency
According to Rigzone, the oil and gas industry will be facing losses in the next couple of years as the Baby Boomer-aged workers begin to retire and there are less people with industry expertise to assume the vacant roles. Big data analysis and remote visibility will help companies better manage their assets and use their findings to optimize production. Leveraging the capabilities of IoT can reduce troubleshooting time from days to minutes, which leaves more time to spend on other operational aspects of the business.
The industry has a major impact on the global GDP: According to Oxford Economics, industry-wide adoption of IoT could increase the global GDP by as much as 0.8 percent, or $816 billion in the next decade.
With lower oil prices being the new normal, profit margins have tightened and oil and gas companies must take this opportunity to invest in innovative technologies rather than conduct knee-jerk cost cutting. The financial gains of cost reduction and saved time will be invaluable as the industry becomes even more competitive.
Big data is not new to the oil and gas industry: Data is crucial for the success of this industry, in particular. Efficiency and accuracy is highly valued in the oil and gas industry almost more than any other industry.
Small improvements in efficiency can make a notable economic difference. Profit in the oil and gas industry is dependent on prompt and accurate production data. With IoT integration, the oil production can be captured in real-time through embedded sensors and the right automation of data communications systems, enables companies to gather information from assets anywhere and make informed decisions.
For example, companies can adapt their drilling strategies after comparing real-time down-hole drilling data with data from production of nearby wells. According to Bain & Company, this level of visibility can help oil and gas companies improve production by 6% to 8%. Additionally, the shift to data generation via the cloud allows for expansion of the amount of possible transactions that can occur all the way down the supply chain.
The key here is that companies need a well-built IoT platform in order to help them convert massive amounts of data into useful information. A big benefit for our clients is the ability of their pumpoff controllers that speak legacy protocols to participate in the Internet-of-Things and enjoy the benefits of modern web services.
Decreased Safety Risk
Safety is perhaps the largest industry concern, both internally and externally. IoT can lessen risk taken by identifying potential issues before they become actual problems or safety hazards. Remote troubleshooting means more constant and efficient regulation of oil rigs. Fully leveraged IoT integration also means less travel and potentially dangerous work for personnel.