Digital Technologies That Are Revolutionising The Oil And Gas Industry
The inherent mismatch between demand and supply in the oil and gas (O&G) industry has become much more pronounced because of the Covid-19 outbreak. This upheaval has caused a financial instability, which has forced businesses to cut expenses in a variety of ways, including reducing their personnel and their compensation.
Another danger comes from the intense rivalry posed by the renewable energy sector, which is expected to reach a market value of $1.1 trillion by the year 2027. To overcome these upheavals and maintain its position as a competitive industry, the oil and gas industry must use digital transformation.
This article will examine digital technologies and the ways in which the oil and gas business is changing as a result.
1. Machine intelligence and big data in Oil and gas sector
- Data Analytics: Big data and AI (Ai)-powered) can facilitate advanced analytic platforms and provide insights for enhanced managerial and operational performance to minimise disruptions throughout the oil and gas supply chain. These insights can help improve overall operational and managerial effectiveness. Cost reductions in infrastructure can potentially be achieved through the combination of advanced analytics and cloud applications.
- Seismic data: During the geographical search for drilling for oil, modern analytics may analyse seismic data to give risk insights, therefore raising the success rate while simultaneously saving both time and money. Analyses of seismic data can also be paired with historical data in order to determine the amount of oil contained in reservoirs.
- Predictive maintenance: The massive amounts of data that may be collected from high-priced machinery operating on oil exploration platforms might be put to use to improve asset upkeep and decrease the number of breakdowns.
2. The Industrial Internet of Things in O&G
- Keeping an eye on pipelines: leaks and other types of damage in the oil and gas production process can result in considerable losses both monetarily and environmentally. In order to stop these leaks from occurring, the Internet of Things (IoT) can facilitate the effective monitoring of the system's pipes, pumps, and filters using real-time data. Because of this, superfluous manual inspections of the system are eliminated, and staff are only mobilised in response to the discovery of abnormalities.
- Asset Monitoring: Sensors that are equipped with the internet of things can allow physical access to utilization and management data of heavy machinery that are deployed in offshore drilling. These machines are often located in distant places that are subject to harsh circumstances.
- Internet of Things in oil refineries: Internet - of - things sensors are able to offer real-time data, which can then be used to regulate performance parameters. As a direct consequence of this, real-time data are made accessible around the clock in order to carry out precise measurements.
- Logistics for the Oil and Gas Industry: Because the vessels that transport oil and gas are so large, many regions are inaccessible to them. Low-power wide-area networks, often known as LPWANs, supply the crew members working on the ship with the opportunity to monitor real-time data so that they can do repairs.
3. Automation in the O&G Industry
According to the data presented in figure 1, the value of the worldwide market for automation technologies in the industry of oil and gas is expected to almost quadruple by the year 2030 and hit approximately $42 billion. The following are some of the effects that automation will have on the oil and gas sector.
- RPA & Smart automation: In the oil and gas industry, improving audibility, lowering the risk of human mistake, and drastically shortening the amount of time it takes to close a deal may all be accomplished by automate the closing process with robotic process automation (RPA). Please feel free to read our post if you are interested in learning more about automated processes in the industry of oil and gas.
- Automating Oil and gas supply chains: Robotic process automation (RPA) makes it possible to automate procurement transactions, which in turn reduces cycle times and increases overall effectiveness in the oil and gas supply chains.
- The usage of drones in drilling operations: Drones and submersible bots are used in offshore drilling in order to automate the investigation of locations that are inaccessible to humans. While workers are installing new components and fixing old ones in potentially hazardous places, mistakes may be reduced, and worker safety can be increased using bots.
4. Mixed reality and augmented reality applications in the oil and gas industry
By 2024, it is anticipated that the market for augmented reality (AR) and virtual reality (VR) would have increased by a factor of ten, reaching over $300 billion. In the oil and gas industry, the implications of augmented and virtual reality are as follows.
- An improvement in training is possible thanks to virtual reality headsets, which enable workers to receive hands-on experience without having to go to overseas facilities. The application of theoretical information in actual situations may be made more effective and secure via the use of this method.
- Enhanced upkeep: Augmented reality headsets have the ability to deliver hands-free instructions along with required tools and components. This may considerably boost the efficiency of maintenance by giving graphical information and removing the have to read extensive manuals. Additionally, these augmented reality headsets have the capability of providing live video access to technicians who are not present at the repair location, as well as recording the procedure for use at a later time.
5. The Use of Blockchain Technology in O&G
The following are some of the implications that the blockchain technology will have on the oil and gas industry:
- Secure O&G transactions: The technology known as blockchain enables digital transactions to be carried out with heightened levels of both transparency and security. For instance, Natixis, IBM, and Trafigura collaborated to create a smart contract platform for the United States that is built on blockchain technology to safely conduct crude oil sales. IBM has also introduced a shared ledger system that is based on SAP. This system was developed exclusively for both the oil and gas industry and helps increase visibility as well as efficiency in everyday transactions.
- An increase in users' confidence Blockchains can also enable the storing and verification of certificates of recruiting training, which contributes to the increase in users' confidence. It also has the potential to provide improved openness between corporate partners with relation to ethical and environmentally responsible business operations.