What's IoT doing in Oil & Gas?

The Oil and Gas industry is dealing with several production challenges, especially after the reduction in the oil prices. The Oil and Gas industries require innovative methods to improve results and cut costs. Without proper information for improved measurement and control, companies are unable to improve production and reduce maintenance cost.

Also, the shortage of skilled labor has driven industry experts to discover smarter alternatives that can bring automation in business processes and minimize the need for workforce dependency.

With the advent of IoT in Oil & Gas industry (O&G), it has been highly automated and connected. Internet of Things has touched nearly every area of O&G operations and customer engagement. IoT is generating new opportunities for O&G companies to achieve safety, efficiency, and visibility across the enterprise. IoT has transformed several facets of O&G like evolving the market and environmental conditions and reducing the possibilities of failures and delays.

IoT is at the heart O&G industry’s transformation. It connects assets, people, products, and services to streamline the flow of information. Also, it enables real-time decisions, heightens asset performance, improves process and product quality, and opens up new opportunities for the industry. Leading O&G companies now are investing billions to implement IoT. In return, IoT provides them with increased asset uptime, efficient predictive maintenance, reduced cost of compliance, and increased return on innovation.

Let’s take a look how IoT-enabled sensors can drive production efficiencies for O&G companies:

• Sensors on drilling machines
• Interconnected devices and data
• Sensor data, linked with Enterprise Resource Planning (ERP) systems
• Safety data from sensors
• Sensors mounted on equipment

IoT-enabled devices and systems are facilitating efficient O&G operations, with minimum human intervention. It provides higher value than traditional technology and automation. Correct implementation of IoT solution has the potential to introduce efficiencies in upstream, midstream, and downstream operations. IoT sensors deployed across the machinery can bring in the much-needed visibility and workplace safety, with better control and maintenance of assets.

Several organizations are using IoT-enabled sensors and devices to monitor all the operations remotely, and improve end-to-end processes. Also, these sensors generate huge volumes of data, which is used to analyze and improve operations.

Let’s take a look at some benefits of using IoT in O&G industry.

1.   Operational Integrity

IoT facilitates operation integrity by providing:

• Predictive maintenance
• Pipeline and equipment monitoring
• Emissions monitoring
• Control and release management
• Location intelligence

2.   Effective Upstream and Downstream Operations

IoT enhances the upstream and downstream operations by providing:

• Real-time machine and sensor integration
• Real-time alerts maintenance workflow
• Dashboards and trend analysis
• Network of asset information

3.   Customer Loyalty

IoT increases customer loyalty by providing:

• Connected cars and businesses
• Energy consumption profiles
• Smart appliances

A recent Cisco study showed that an O&G company with $50 billion in annual revenue had increased its profits by nearly $1 billion. Thus, utilization of IoT in O&G industries is generating never before anticipated opportunities and value.