Why any company in Oil and Gas would invest in IoT?
Most of the Oil and Gas companies prefer investing in IoT and hence increase their operational efficiency because:
- 1. A single pump failure can cost $100k to $300k per day.
- 2. The cost of unscheduled shutdowns in refineries averages $20 billion a year or 5% of cost production.
- 3. Upstream industry loses $8 billion a year on non-productive time as engineers spend 70% of their time searching for and manipulating data.
How IoT concept solved these problems?
Implementing IoT Solutions and catering following features eradicated the challenges faced by any Oil and Gas company:
- 1. Predictive Failure: Increased asset uptime and reduced service costs.
- 2. Adaptive Diagnostics: Improved uptime, cut service and warranty costs.
- 3. IoT Device Management: Enhanced the integrity of the device.
- 4. Condition based maintenance: Improved efficiency and reduced service costs
- 5. Asset Optimization: Improved the asset performance and their efficiency
- 6. Asset Utilization: Improved the product design and their compliance
How the Internet of Things has reignited the Oil and Gas Industry?
The Oil and Gas Industry has already harnessed the power of big data and simultaneously improved the efficiency of the industry by using the Internet of Things (IoT). With the increasing usage of devices and sensors, the Internet of Things has improved the efficiency, decision making and real-time management of the industry. To make the optimize use of IoT, the Oil and Gas industry caters the following real-world implications:
- 1. Remote Monitoring and tracking management: IoT technology has enabled the connection of various systems to network and sends the programmed information back to a device. Once the information is collected from each system, the real-time monitoring of the overall system is done. Accordingly, alerts are sent when the system experience a malfunction, high-pressure situation or any other dangerous issue.
- 2. High Security and Reduced Risk: Cyber Security has been noticed as the greatest one which can cause harm to the automated processes and especially the upstream operations and productions have been at the highest cyber risk. A proper risk management strategy reduces the risk in all areas and thus reduces the probability of cybersecurity. At the different stage, there are different risk-prone and serious issues such as exploration, production and abandonment, and development.
- 3. Real-time Fleet Management System: With the latest technology of IoT in Oil and gas, an exact real-time location of any equipment can be tracked. Any occurrence of operational or environmental hazard enables the geolocation system to analyze the data. The Oil and Gas industry is no more dependent on human input or the manual working of the assets being used in fact it is dependent on the real-time tracking of the assets.
- 4. Sustainable Environment: Sustainability being a broad term helps in the safety of environmental and social issues. Various environmental hazards like waste and spills harm our environment and hence disturbs the sustainable environment being created. As IoT in Oil and Gas enables real-time tracking, quick decisions after various hazardous situations help in keeping the environment safe and sustainable. For keeping sustainable environment factors like economic efficiency, social impact and climate strategy plays a major role.
- 5. Equipment check and preventive maintenance: A huge amount of capital is invested by any Oil and Gas industry to get the real equipment work. On the same side, the industry faces losses when any equipment fails. The data analysis and real-time tracking send the alerts about the equipment failure well before time. If you want your equipment to last for a longer period of time then preventive maintenance can be provided by sending alerts for the features like coolant temperature, low battery, and many other factors. Notifications and alerts for low fluids and overheating engine help in improving the maintenance of the equipment. The warning signs save the cost for Oil and gas industry and improve the efficiency of the equipment. Maintenance plays a key role in fostering profit of any industry.
Internet of Things as a concept has totally fascinated the world. Global IoT in the Oil and Gas market is foreseen to develop to $30.57 billion by 2025. It is required to be for the most part determined by a deficiency of talented work, expanding a number of digital assaults, maturing framework, and need to increment operational proficiency, which will go about as key drivers for the development of this market.
Sanjeev is the Chief Executive Officer (CEO) of Biz4Intellia, responsible for leading Biz4Intellia’s global business strategy and operations. Being an Internet of Things (IoT) enthusiastic from the beginning of its professional career, Sanjeev loves to read and write blog/articles related to the disruptive technologies that are trending. Before founding Biz4Intellia, Sanjeev was an executive at multiple companies in USA and has a great experience of making many industry verticals productive.