Many challenges are faced by the companies extracting and selling oil and gas. To stay competitive in the market and profitable, the companies need to start producing their products at lesser costs. Mitigating the challenges in the oil and gas industry is the first step that these companies need to take to make their business sustainable and profitable. The introduction of wireless Internet of Things (IoT) in the oil and gas sector has helped companies resolve several issues while getting the maximum output.
- Challenges Faced by the Oil and Gas Industry
The oil and gas industry is divided into upstream, midstream, and downstream subsections. Upstream companies do search for new oil and gas reservoirs on the earth. The midstream companies are involved in the task of logistics. They are responsible for transporting the different products to refineries, storage facilities, and retailers. Downstream companies deal with the marketing and distribution of the refined end product.
- Challenges in upstream
Maintaining costly and highly complicated equipment remains the top challenge in this industry. They need to use advanced technologies and heavy machinery to explore the areas where they can effectively extract gas and oil. With the implementation of IoT in the oil and gas sector, it becomes possible for organizations to track schedules, avert malfunctions.
2. Challenges in midstream
In order to comply with the already existing regulations, oil and gas technologies have to make physical inspections at the initial level. With the implementation of IoT in the oil and gas sector, it becomes possible for organizations to detect fluctuations in moisture, temperature, and other related parameters. Moreover, by introducing IoT into the midstream companies, it becomes possible for them to transport products safely and efficiently.
3. Challenges in downstream
Some of the prominent issues downstream oil and gas companies face are the treatment of harmful residue, cooling water, recovering solvents, and oily sludge. Implementing the Internet of Things makes it possible for such downstream companies to boost their operations and efficiently use energy.
- Uses Cases of IoT in the Oil and Gas Industry
Based on the current scenario and targeted business objectives, the wireless Internet of Things has been implemented at different levels across companies. Each company approaches the technology differently and uses the data insights to make meaningful decisions that can help them grow the business.
- Supply Chain Management
They can make crucial business decisions regarding operations, inventory management, and manufacturing. IoT sensors even alert the companies if the quantity of oil and gas available at the clients goes low. They can instantly refill the product in advance, thereby saving clients from last-minute trouble. Remote Inspection of Machinery
IoT will help you to track down such oil leaks and notify officials about the same. In addition, it will check various types of machines such as filters, pumps, main components in the pipeline and prevent breakdowns before they occur.
2. Offshore Monitoring of Oil and Rig
Now you can cost-effectively connect several monitoring points using LPWANs. Here, you can combine several leak detectors to several wells that are present within a said limit of the LPWAN network. You can even use LPWAN to monitor equipment, measure salinity and keep an eye on employees on-site.
3. Advanced Data Analytics
IoT is meant to collect data that can then be used to get valuable insights. An IoT ecosystem is built by combining oil and gas production sites and sensors. Some of such collected data is time-sensitive. In this way, meaningful insights can be delivered to users in readable formats wholly and quickly.
4. Seismic Exploration Sensors
Individual IoT sensors connected by fiber optic cables aid oil exploration by mapping subsurface drilling sites to determine new drilling locations and optimize the output of operational areas. The sensor-based system improves the new and existing drilling rig productivity and reduces the time required for site-selection data analysis.
- Benefits of IoT in the Oil and Gas Industry
The introduction of wireless IoT in the oil and gas sector has helped companies to resolve several issues, all the while getting the maximum output. Following are some of the key benefits of using IoT in the oil and gas industry :
- Automation
The oil and gas industry can witness deduced downtime in terms of breakdowns and crashes and machinery malfunction by implementing IoT. IoT can also help you control the instances of accidents at the workplace and boost the security of employees as it removes any involvement of humans.
2. Reduce Wastage
Making the oil and gas industry more environment-friendly is also the key focus of IoT in this sector. It does that by avoiding equipment damage and nullifying the risks associated with leakage.
3. Increase Safety
The errors caused in this sector due to human involvement can be eliminated to a great extent by the implementation of IoT.
4. Boost Productivity
The oil and gas industry can make complete use of the technological process to extract oil and gas as well as reduce the expenses involved in such a process. They will be able to boost their production by 6%-8% by opting for data analytics.
5. Help with Data-driven Decisions
IoT can help this industry by offering real-time data that can help the stakeholders to make important decisions regarding the next step in the process, i.e., research, extraction, refining, and transportation.
6. Decreased Carbon Footprint
It is possible to reduce carbon emissions by efficiently carrying out operations. The carbon emission was coming from drilling and oil and gas production, which can be lowered significantly. This way, the organizations can fulfill their moral responsibility to not affect the environment negatively while carrying out business operations.
7. Increased Revenue
It will become possible for organizations to reduce their operational costs by properly investing in IoT. IoT will help the organization cut down on unnecessary expenditures and reduce human resources that need to be funded otherwise.
8. Increase Health Safety
As per the report of the CDC, the Oil and Gas industry has been experiencing a lot of causalities. IoT can help such hazardous working environments and improve the employees. It can help predict the equipment that needs maintenance, know which of the employees should be working on a said site, which can be the best way to make evacuation smoother, etc.
The use of IoT applications in the oil and gas industry will continue to grow and it can be considered a constantly evolving process. Apart from helping companies efficiently extract oil and gas, they cover many other operations and processes. No doubt IoT-powered devices will bring in a new sunrise in oil and gas businesses focused on maximum profitability and efficiency.
source: siliconithub.com
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