Can Technology Save the Oil and Gas Industry?

Digital advances are here to aid the Oil and Gas companies in transcending the limitations of traditional techniques.

Digital Innovations are transforming Oil and Gas companies. The day-to-day manual tasks in the Oil and Gas industry get replaced by automation due to the evolution of advanced technologies. It results in mitigated cost, improved quality, and efficiency of various industry niches. They are more likely to get organizational benefits and broader market transformation.  

But, during the health crisis, Oil and Gas companies had experienced terrifying disputes. Prices have dropped very harshly. It drastically increases the need to address these difficulties as soon as possible. Before the pandemic also, the industry was struggling with old school business methodologies.

So, actually what were the issues with the Oil and Gas industry?

#1. Complex Supply Chains

• Domestic/international transportation
• Orders and inventory management
• Visibility, materials management
• Import/export simplification
• Information technology

But an ineffective supply chain management process leads to challenges. It occurs in any part of the supply chain and generates issues such as,

• Delivery of in-bound drilling materials (i.e., Mud, Water, or Sand) 
• Transportation of produced oil/gas from the ground to its targeted location
• Getting workers to the areas of warehouses and taking care of their health and safety 
• Environment management 
• Plenty of drilling and abundant materials
• Divided supply chains that break, delays, and fuzzy accountability 
• Repeated changes in plans that affect material requirements and service demands
• Data management 
• End-to-end supply chain visibility and management
• Materials tracking and monitoring 
• Optimizing purchasing

#2. Safety Regulatory Compliance

Workers in the Oil and Gas industry come across a lot of dangers while performing their tasks. A single false move can cause significant impacts. Safety regulatory compliance is a major issue within the Oil and Gas industry. 

Manual processes can be the reason for human errors and are time-consuming as well. These processes demand valuable time and energy from employees.

Traditional working systems can not keep pace with cutting-edge requirements. It utilizes valuable resources to try to discover system workarounds. 

Individual systems provide confused and unrelatable reporting and response time. It makes immediate action difficult.

#3. Large infrastructure size

The need for infrastructure across every segment of the supply chain is enormous. Whether its,

• Drilling machines to pipeline
• Distribution networks
• Compression and metering stations
• Storage facilities

All these scenarios need infrastructure that is massive when it comes to costs as well as size.

#4. Access to remote areas

Today each corner of the world is being explored for possible energy extraction. The most convenient locations are more likely to be underwater. It is in the Arctic or other unfriendly regions.

The Oil and Gas Industry Solutions are here. All Goes to Latest Technological Advancement.

Companies have started investing in digital technologies to optimize industry processes. Integration of IT with the O&G industry streamlines production, safety, asset management, maintenance, etc.

#1. Automation

Oil and gas automation often leverage IoT sensors, predictive and self-learning systems, and AI.

• AI and digital technology mitigate expenses by replacing human labor.
• It boosts the security and precision of human-driven performances. 
• Automation of drilling processes like pipe handling can decrease safety risks. 
• It offers scalable procedures and diminishes onsite deaths due to injuries.
• Workers in remote areas leverage drones, 3D virtual models, and underwater crafts to aid inspection. 
• It is possible to improve the level of pressure and flow of oil and gas through automation. The Up/Mid/Downstream producers can get benefits through it. 
• Interconnected, automated systems enable easy distribution of data. 
• Internal IT processes automation aids energy operations. It streamlines production and increases profits. It also mitigates foulness while boosting possible revenue.

Source: https://prn.to/3z7zLgr

#2. IoT (Internet of Things)

By 2025, the technology of IIoT can create a total economic effect within $3.9 to $11 trillion, according to McKinsey Digital. 

O&G companies benefit from IIoT by developing integrated deployment strategies. These strategies enable companies to track various operations. It also optimizes and automates them as per requirements.  

• IoT eliminates the number of risks and mistakes generally caused by humans.
• It optimizes costs.
• Provide a comprehensive technological process to extract oil and gas. 
• Offer accuracy in real-time data. It helps to decide on the next significant steps related to analysis, extraction, refinement, and logistics. 
• IIoT is also more environmentally friendly as it reduces the risks of asset damages and leakage. 
• IoT automation mitigates machinery failures and decreases downtime when the chances of crashes.
• The number of accidents reduces by eliminating human involvement.

#3. Fleet Management with Telematics

Upgrading fleet management is a significant facet of business success. Advanced technology enables fleet managers to take their business to the top level. Telematics is one such fleet management invention. 

Telematics helps industries to enhance security, decrease fuel usage, and reduce vehicle collapses.

• Telematics provides fleet managers with auditory and visuals in their fleet vehicles. So they can discover and correct their driver’s risky driving behaviors.  
• Telematics also informs fleet managers when the drivers are attaining extra hours than they should. 
• Telematics serves as an early diagnostic system. It notifies fleet managers about vehicle failure and heavy machinery breakdowns in advance. 
• It helps to cut the cost of repairs and downtime. 
• With GPS monitoring, the O&G companies can precisely track mileage. They can also find out the needed fuel on the roads or onsite premises.

#4. Communications Solutions  

From the oil platforms to offshore drilling, mission-critical communications technology is vital. When it is a remote location, even basic communication can produce a massive challenge. 

Advanced satellite technology helps the most inaccessible areas with voice and data connectivity. It also helps with better communication throughout the supply chain. 

It also performs well with the IoT sensors to collect and transmit vital data. 

• A digital oil rig augmented with IoT intelligence improves and makes quick decisions.
• Efficient wireless voice and data communication help workers to get emergency calls on time. No matter the type of device, location, or network. 
• Well expands the reach beyond the radio and cellular networks. 
• Highly reliable when you communicate instantly, even in the challenging environments 
• With technology intelligence, provide video security and control access to the security team.

#5. Real-Time Data Analysis

The industry’s reliance on data has increased the significance of advanced analytics in the O&G business.

• Seismic Data Management
• Optimize drilling processes
• Reservoir management apps to get on-time, actionable info. You can get to know about the changes in reservoir pressure, temperature, flow, etc. 
• Sensor data analysis to ensure the safe logistics
• Predictive maintenance software to analyze sensor data from pipelines and tankers
• Highly cost-effective
• Reduce risks
• Help with improved decision making
• Assure efficient performance of machines

Summing Up

Digital transformation can aid the O&G sector in addressing the challenges it comes across. So, in the long term, stakeholders can generate value. 

Digitizing assets development to bring modern technologies into business, prefer digital execution. 

From predictive analytics to the rise of drones and data analysis, there are high chances digital transformation works for the industry. Companies are acknowledging the benefits of advanced technologies.