Why it’s the right time to Invest in Predictive Maintenance in the Oil & Gas Industry?

An Introduction to Predictive Maintenance

Predictive maintenance is a smart technique to assess the health of connected equipment to estimate the maintenance time. From an end-to-end supply chain (exploration to delivery), the oil & gas industries deeply depend on their infrastructure - expensive machines and pipelines. If machines aren’t working and well maintained, delays can occur with severe downtime and money will be lost as operational opportunity cost. 

In the oil & gas industry, AI/ML plays a very important role in compiling a massive amount of data transmitted by smart sensors and equipment. Every machine connected in the value chain of the oil & gas industry requires regular maintenance to support peak performance. Predictive maintenance is a new mantra to know the health of your machine in a realtime before it starts deteriorating.

“Most pipelines in use today were built more than 20 years ago” (Ref.). Industries are still operating using outdated technologies and rule base pattern, making the pipelines expensive to operate and maintain. These pipelines are more prone to leakages and the huge credibility of big players is on stake.

Why Industries are investing in Predictive maintenance:  

With a low-profit margin in both oil and gas prices, savings are required from other areas to maintain the overall cost board. The price of oil has fallen more than 20% this year which leaves the industry in a vulnerable uncertainty. 

According to The Oil and Gas Technology Centre, “data optimization can push plant performance beyond 95%, increase production by 2% to 5%, improve efficiency and thus, reduce costs by 10% and perhaps most importantly, it can help prevent disasters like oil spills or fires”. 

In a recent interview, Tom Siebel, founder of C3.ai, has very well-articulated that companies that adopt this technology will be the next Amazon, and those that don’t adopt will be the next Sears.

A rapidly growing company, Algo8 has created a vision in S.P.A.C.E (Supply Chain. Process. Assets. Compliance & Safety. Energy & Utilities) and has deployed cutting edge AI/ML capabilities to save millions of dollars in industries in Southeast Asia. 

Here are some transformative case studies in oil and gas created by Algo8: 

• $7M savings using cognitive predictive maintenance to predict "Lump Formation to Minimize Downtime". 
• Potential savings of $ 1.5M by "reducing SOx emission and LIME consumption in CFBC boilers"  

The scientists at Algo8 adopt an innovative way of solving existing problems using machine data.  To know more about existing use cases at Algo8, please contact us.